CRISIL Market Intelligence and Analytics has predicted a rough patch for the tyre industry in its latest report. As per the report, the price of natural rubber has surged more than 33 percent on-year in the first five months of this fiscal due to strong demand and crunched supply, potentially affecting profitability.

The research also notes that domestic natural rubber prices ended August at an average of INR 238 per kg, significantly higher than the previous 10-year trend. The commodity last broke beyond the INR 200/kg barrier in 2011, driven by the rebound in demand following the Global Financial Crisis and the accommodating policies of the US Federal Reserve and other central banks. From 2008 to 2011, prices have grown at a compound annual growth rate of 101 percent. But the three-year boom was short-lived, and prices were low, averaging less than INR 150 per kilogramme, for the next 10 years. Since the end of 2023, prices have increased dramatically once more despite several difficulties.

Pushan Sharma, Director – Research, Market Intelligence and Analytics, said, “While the previous spikes were triggered by isolated events such as farmer protests over low profits in 2016 or the pandemic-induced labour crisis in 2020, the current price rise is rooted in fundamentals, i.e. demand and supply dynamics. In 2011, the natural rubber market had sufficient supply to cater to global demand. Between fiscals 2011 and 2023, however, global production grew 35 percent, while demand expanded 40 percent, resulting in supply crunch and, thereby, higher prices.”

This has a significant impact on tire manufacturers' profitability since, depending on the kind, natural rubber makes up 20–40 percent of the weight of tyres. About 80 percent of the nation's natural rubber use comes from the tyre sector. Therefore, there is a negative association between the cost of natural rubber and the profit margins of tyre original equipment manufacturers (OEMs). For example, while natural rubber prices surged by 22 percent year over year in the first quarter of this fiscal year, the operating margin of the top five Indian listed tyre makers fell by almost 200 basis points to 14 percent, down from 16 percent in fiscal 2024.

The cost of crude-based raw materials, such as nylon tyre cord fabric, poly butadiene rubber, styrene butadiene rubber and carbon black, is also anticipated to decrease as crude oil prices ease. However, CRISIL's Basic Tyre Raw Material Index, which tracks the prices of these commodities, is likely to increase due to the rising cost of natural rubber. After declining by five percent the previous fiscal year, the index is predicted to rise by 4–6 percent this time around.

Mohit Adnani, Associate Director – Research, Market Intelligence and Analytics, said, “With further rise in demand and restricted supply, the prices of natural rubber are expected to remain elevated, impacting the margins of tyre manufacturers well beyond fiscal 2025. The deficit in the natural rubber market is expected to triple in 2024 as smaller tappable area and lower yield, along with a potential increase in demand, test the supply side.”

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Continental has secured a global original equipment supply agreement for the new all-electric Renault Twingo. The latest generation of the compact vehicle is now being produced exclusively with the 18-inch Continental EcoContact 7 tyre as standard across all worldwide markets.

The selection of this specific tyre is underpinned by its superior performance on the EU tyre label, particularly regarding energy efficiency and rolling noise. These attributes are critical for electric vehicle applications, as low rolling resistance directly contributes to maximising the driving range per charge, while reduced noise emission ensures a more serene cabin environment.

The tyre’s exceptional energy efficiency stems from a novel rubber compound and the advanced Smart Energy Casing technology, which incorporates new materials to minimise internal friction. Efficiency is further amplified by an aerodynamically optimised sidewall, featuring a golf-ball-inspired ‘Aerodimple’ structure that reduces air turbulence and the energy required to maintain motion.

Furthermore, Continental has engineered the Silent Pattern tread design to specifically mitigate rolling noise. By meticulously calibrating the tread block spacing and angles to counteract low-speed urban frequencies, the tyre delivers a quieter experience for both passengers and surrounding communities. This tyre variant, size 205/45 R18 90H XL FR, has been homologated for the Twingo in numerous countries.

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Bridgestone UK has been named Tyre Manufacturer of the Year at the 2026 TyreSafe Awards, recognising its sustained efforts to improve road safety and influence driver behaviour across the country. The honour specifically highlights the effectiveness of the company’s 'Be a Road Safety Hero' initiative.

Since its inception, that campaign has reached over 24 million individuals, combining public education, retailer participation and direct engagement to translate awareness into practical action. More than 25 nationwide events have been held at venues ranging from supermarkets to tyre retail sites, resulting in over 10,500 complimentary safety inspections. Those checks uncovered more than 1,200 separate issues, including roughly 200 tyres deemed illegal for road use.

Beyond these hands-on clinics, the programme has distributed extensive educational resources and maintained visibility through digital media and targeted public relations. Partnerships with groups like Sporting Bears have helped convey safety messages to enthusiast communities, while Bridgestone staff have collectively logged over 10,000 volunteer hours in support of the campaign’s objectives.

Helen Roe, Senior Manager – Brand, Events, Product & Digital Marketing, said, "While we're naturally delighted to receive this recognition, what matters most to us is the impact the campaign is having beyond the award itself. Our 'Be a Bridgestone Road Safety Hero' campaign was designed to encourage drivers to take simple steps that can make a big difference, and we're proud that the campaign is helping to identify potentially dangerous tyres and prompting drivers to take action. Tyre safety isn’t something any one organisation can tackle alone. That’s why we’ve worked closely with our retailers and partners to take this message directly to motorists in ways that are practical, visible and engaging. To have carried out over 10,500 tyre checks over the last couple of years, demonstrates the scale of the challenge but also the power of education and collaboration. We see this award not as the finish line, but as motivation to continue championing safer roads for everyone.

“We’d also like to recognise and congratulate TyreSafe, on their 20th year anniversary, for bringing together so many to collaborate on raising tyre safety awareness in the UK and for their continued work with government, police and emergency services to raise the profile of tyre safety nationwide. Ultimately, tyres carry lives. With an estimated 6.1 million illegal tyres still on UK roads, raising awareness remains critical. Regular tyre checks are a simple step that can make a real difference – for drivers and for everyone around them.”

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Toyo Tires secured a dominant performance at the 58th SCORE Baja 500, with drivers Trey Gibbs and Gustavo Vildósola Sr. claiming victories in the Trophy Truck Spec and Legends classes, respectively. The championship-winning Open Country M/T-R tyres were instrumental in the success, particularly in the highly competitive Spec class, which boasted the largest field among the top five categories. Brent Fox added to the brand's success by finishing second in the Spec class, delivering a third podium finish for Team Toyo over the race weekend.

The second round of the 2026 SCORE World Desert Championship unfolded on a demanding 468.70-mile circuit through the northern Baja California peninsula. Driving the #215 Mason Motorsports / Toyo Tires / Ford Raptor, Gibbs achieved his maiden SCORE race victory with a winning time of 9 hours, 46 minutes and 7.59 seconds. This triumph extended Team Toyo’s remarkable winning streak in the Spec class to four consecutive years, a reign that began at the 2023 Baja 500. Fox secured the runner-up position in his #282 1Nine Industries / Ford Raptor, clocking in at 9 hours and 55 minutes to complete a one-two finish for the team.

In the Legends category, Vildósola Sr. returned to the top step of the podium behind the wheel of his #1L Mason Motorsports / Toyo Tires / Vildosola Racing / Ford Raptor. His winning effort, completed in 9 hours, 47 minutes and 56.17 seconds, marked his first victory of the season and extended his personal winning streak at the Baja 500 to five consecutive races, a run that started in 2022.

Looking ahead, Team Toyo aims to build on this momentum as the series progresses towards the Baja 400 in September. The brand’s legacy in the SCORE World Desert Championship remains extensive, with multiple victories across all major events. Notable wins include the San Felipe 250 on four occasions, the Baja 500 six times, the Baja 400 five times and the prestigious Baja 1000 six times, with a roster of accomplished drivers contributing to this storied record.

Gibbs said, “Winning the Baja 500 is something I’ve always dreamed of, and it still hasn’t fully hit me what my team and I accomplished over the weekend. Honestly, I don’t have the words to describe what this win feels like.”

Fox said, “Taking home second place in the Trophy Truck Spec class and completing the Baja 500 is something we’re really proud of. Thanks to Toyo Tires, we ran the entire race with no flats and zero issues.”

Stan Chen, Deputy Director – Consumer Marketing, Toyo Tire U.S.A. Corp, said, “Congratulations to Trey Gibbs on earning his first SCORE race victory this weekend, and to Gustavo Vildósola Sr. on adding another win to his accomplished career. Our drivers have continued to set the standard in the Spec and Legends classes at the Baja 500, and we’re proud of this past weekend’s continued success.”

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Tyres Europe has joined a broad coalition of industrial sectors calling on the European Union to adopt a more dynamic and forceful trade policy amid deliberations by the European Council on economic security, competitiveness and EU-China relations. The tyre industry contends that current frameworks are increasingly mismatched with the realities of a fast-moving global economy, where distortions rapidly transcend borders and sectors.

The sector underpins approximately 500,000 jobs across the Union and supplies essential products for passenger mobility, freight, agriculture and defence. Its viability depends on fair competition within deeply interconnected value chains, yet structural overcapacity, state-induced market distortions and unfair trading practices are simultaneously affecting multiple industries. These pressures cascade across supply networks, weaken investment incentives and progressively hollow out Europe's industrial base. Tyres Europe argues that only a coherent policy combining robust trade defence instruments with broader industrial resilience measures can effectively counter this erosion.

A critical challenge lies in the temporal disconnect between agile global supply chains and the slower pace of EU investigations and duty implementation. Tyre manufacturing routes can be reconfigured within months, allowing exporters to front-load shipments during probes and redirect production to alternative locations once tariffs are imposed. This leaves European manufacturers under sustained competitive pressure even after investigations conclude. Tyres Europe has therefore endorsed the Joint Industry Statement, which urges a more ambitious application of trade policy that reflects the fundamentally altered contours of global commerce.

The organisation supports enhanced resources for investigations, a more proactive deployment of existing instruments aligned with industrial objectives and exploration of additional WTO-compatible tools to tackle systemic state-induced distortions. It also advocates for strategic use of the Foreign Subsidies Regulation to address recurrent distortive patterns beyond isolated case assessments. Given that tyre manufacturing involves long-term, capital-intensive decisions with near-irreversible capacity loss, preserving a competitive domestic base is framed as both an industrial goal and a matter of strategic autonomy. As European leaders shape their response to a volatile trading environment, Tyres Europe urges them to ensure that trade defence evolves to safeguard fairness and the industrial capabilities underpinning prosperity and innovation.

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