A tyre being retreaded

India’s retreading industry closes 2025 on a turbulent note, shaped by volatile demand, uneven GST reforms, rising compliance costs and a partial enforcement of the Extended Producer Responsibility (EPR) regime.

The year began with optimism as pre-cured tread (PCT) sales moved up on the back of growing radialisation and sustained awareness initiatives, but that momentum faded mid-year as policy shifts and softer fleet sentiments weighed down volumes. Retreading companies say 2025 has been defined as much by regulatory shocks as by the struggle to recover pricing power in an increasingly competitive market.

According to Tyre Retreading and Education Association Chairman, Karun Sangi, overall retreading volumes declined through 2025, especially for businesses dependent on larger fleets. Fleet operators delayed retreading cycles as freight movement stayed inconsistent and as the widening GST gap altered cost economics.

Sangi explained that the GST cut on new tractor tyres from 28 percent to 18 percent dramatically changed fleet behaviour. “When the GST on new tractor tyres fell by 10 percentage points, it became easier and cheaper for fleet owners and small operators to opt for new tyres rather than retreading them. This has impacted retreading volumes significantly.”

Retreading GST remains at 18 percent, creating a distortion that disproportionately hurts small farmers and rural operators who traditionally preferred retreaded tyres for cost savings.

Sangi noted that radialisation in the truck and bus segment continued expanding, but many fleets still hesitate to pay for high-quality PCTR material. He stated, “There is a mindset shift that is still incomplete. Radial tyres require proper retreading practices and quality material to deliver full casing life. But many fleet owners still focus only on upfront cost.”

This behaviour forced retreaders to hold pricing steady even as raw material costs rose through the year. Smaller retreaders, lacking scale, were hit hardest, resulting in thinning margins across the industry.

Another major stressor was the implementation of the EPR framework for end-of-life tyres. According to Sangi, the EPR system, although essential for environmental compliance, has created bottlenecks for smaller players.

“EPR has made processes slower, approvals tighter and paperwork heavier. The industry agrees with the intent, but implementation needs streamlining, or SMEs will not survive,” he said.  

Retreaders who buy used casings from dealers or fleets now face documentation challenges and ambiguous compliance norms, particularly when handling multi-state movements of scrap tyres.

Sangi emphasised that retreaders have long been part of the circular economy and over-regulation could undermine a segment that inherently extends tyre life and reduces waste.

Treads in disarray

Echoing similar concerns, Kolkata-based Supreme Treads’ Director, Rajesh Verma, said that 2025 has been a difficult year marked by falling demand and rising input costs. He pointed to weak commercial vehicle movement, especially in the long-haul trucking segment, as a key factor.

“When truck utilisation drops, tyre wear drops. That automatically delays retreading cycles and that’s exactly what we saw in 2025,” he explained. Verma added that patchy freight during monsoons and the prolonged slowdown in construction activity further reduced tyre consumption.

Verma highlighted that customers also shifted back towards new tyres due to aggressive discounting by OEMs and Tier-II tyre brands. According to him, “We noticed that many smaller fleets were offered attractive upfront prices for new tyres, almost matching retread economics. For them, the choice became simpler.”

This price war undermined retreaders’ ability to raise rates despite increases in rubber, carbon black and labour costs. He reiterated that while overall radialisation is good for long-term industry health, retread quality across India remains inconsistent because of unorganised operators offering low-priced, low-quality jobs.

One of the leading tread makers of the country, Indag Rubber, echoed the same sentiment. The company’s Senior General Manager Rohit Kapoor said, “Since the start of CY2025, the industry witnessed an uptick in pre-cured tread demand, driven by greater customer awareness around the operational and environmental benefits of retreading. The rising commercial adoption of radial TBR tyres further encouraged fleet operators to opt for retreading as a way to extend tyre life and reduce running costs. However, the September GST reform proved to be a setback: while the tax on new tyres was reduced, the rate on retreaded tyres remained unchanged. This narrowed the price advantage and caused market volumes to fluctuate, although we expect a gradual recovery and steady growth in the coming year.”

He added, “The retreading sector had anticipated that the industry would be included in the GST revisions, given its role in circularity and resource efficiency. We have consistently engaged with policymakers to advocate for a lower tax rate on retreaded tyres and services, in line with global sustainability goals and waste-tyre regulations. Discussions with the authorities are ongoing, and while no formal roadmap has been communicated yet, we remain confident that the policy direction will eventually align with circular-economy principles and support tax rationalisation for retreading.”

2026 Outlook

Both Sangi and Verma agree that despite 2025’s setbacks, the long-term fundamentals of retreading remain strong because India’s expanding logistics and transportation ecosystem will continue to rely on cost-efficient tyre lifecycle management.

Sangi stressed that the industry needs GST rationalisation and smoother EPR processes. Verma added that technology adoption will be crucial for regaining customer trust and delivering consistent performance across applications.

As the year ends, the industry finds itself at an inflection point as the demand turbulence of 2025 exposed structural issues but also clarified what retreaders must prioritise in 2026 viz-a-viz quality, compliance readiness, customer education and tighter collaboration with fleet operators.

The segment has weathered a difficult year, but its intrinsic value proposition of extending tyre life at one-third the cost of a new tyre remains compelling. India’s push for sustainability and rising pressure on operating costs could well reposition retreading as a growth industry again, provided policy and market forces move in alignment.

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Pirelli has entered into a strategic agreement with Swedish technology firm Univrses to integrate artificial intelligence-based computer vision systems into its Cyber Tyre platform. As part of the deal, Pirelli has acquired a 30 percent stake in Univrses, with an option to increase that share to a majority holding. The collaboration will embed Univrses’ 3DAI technologies into Pirelli’s existing Cyber Tyre solutions, creating a unified system aimed at producing safer and higher performing vehicles.

The combined technology has potential applications in advanced driver-assistance systems and autonomous driving. It also generates timely, actionable data for road management, helping authorities make better decisions and deploy resources more efficiently. This could lead to fewer road accidents and saved lives. The system uses onboard cameras and tyres to collect feedback on road conditions. Pirelli’s Cyber Tyre, the first integrated hardware and software system of its kind, gathers data from tyre sensors, processes it with proprietary algorithms and communicates in real time with vehicle electronics and the cloud.

Univrses originally developed its technology to help cars understand their surroundings, but it has since been adapted to turn vehicles into AI-powered road monitoring agents. The Swedish company’s 3DAI Engine provides autonomous vehicles with perception capabilities including 3D positioning, mapping and spatial deep learning. Its 3DAI system digitises roadside infrastructure using data from vehicle-mounted sensors like cameras.

A pilot project is already active in Italy. In 2025, Pirelli and the Puglia Region launched a road network monitoring system to create an updated map of infrastructure conditions. The system analyses data from tyres via the Cyber Tyre platform alongside visual data from cameras interpreted by Univrses’ technology.

Andrea Casaluci, CEO, Pirelli, said, “The agreement with Univrses further enhances our Cyber Tyre™ platform, thanks to advanced AI‑based artificial vision technologies. The collaboration between Pirelli and Univrses will make a significant contribution to the ongoing transformation of cars into true software‑defined vehicles.”

Jonathan Selbie, CEO, Univrses, said, “Continuous monitoring and data are becoming the new foundation for infrastructure asset management, and Univrses technology is able to provide powerful analytical capabilities based on reliable and frequently updated data. In this context, we are pleased to welcome Pirelli as an investor and to take our partnership to the next level: we will join forces to deliver increasingly advanced services and products.”

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ZC Rubber is preparing a major European-focused showcase at THE TIRE COLOGNE, scheduled to run from 9 to 11 June 2026. The tyre manufacturer will occupy Booth C050g in Hall 8.1, highlighting its WESTLAKE and GOODRIDE brands with a clear emphasis on products tailored specifically for regional market demands.

The display will blend imminent and future innovations. Products destined for a European launch in the latter half of 2026 will appear alongside the company’s current truck and bus radial lineup. Selected previews of developments planned for 2027 will also be on view. A featured attraction is the Westlake Sport RS2, a drift-proven ultra-high-performance tyre praised for its grip, precision and 180 treadwear rating. A renewed rubber compound, developed through work with the Red Bull Driftbrothers, now delivers steadier traction under severe driving conditions. Appearing at the stand, Red Bull Driftbrothers driver and engineer Elias Hountondji will illustrate how motorsport data directly refines ZC Rubber’s product engineering.

Additional new passenger car radial models for Europe in the second half of 2026 include the Westlake ZuperFlex Z-137, Goodride RideMax G-147, the all-season Westlake Zuper4S Z-411 and the off-road focused Westlake Terra Legend SL399 and Goodride Mud Legend SL388. On the truck and bus side, already available tyres such as the Westlake WSL2, Westlake WDL2+ and Goodride S2, D3 and D4 will be exhibited, covering steer and drive axle needs for long-haul and heavy-duty transport.

A sneak peek at 2027 offerings will feature the Westlake Z-301 commercial van tyre, Goodride All Season G-721, Goodride SnowComfort G-518 and new TBR models including the Westlake WTL2, Westlake WTR OEM and Goodride M2. ZC Rubber’s team will remain on-site throughout the event, welcoming visitors and partners to the booth for meetings and professional discussions.

Leo Liao, General Manager, ZC Rubber Europe, said, “This year’s showcase reflects a much broader and more complete portfolio for Europe. From UHP and all-season tyres to all-terrain, mud-terrain and TBR solutions, we are bringing new developments across almost every major segment. This reflects how seriously we take the European market: we are listening to local needs, investing in the right products and building a portfolio that better matches the needs of our European partners.”

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Magna Tyres has launched the MA801 TR, a new solid tyre engineered for extreme operating conditions in recycling facilities and heavy industrial settings. Designed to maximise equipment uptime while supporting high load capacities, the tyre is built to deliver dependable performance in harsh environments. The official debut of the MA801 TR will take place at IFAT 2026 in Munich, scheduled from 4 to 7 May 2026.

The new model is intended for compact wheel loaders and telescopic handlers, featuring a flat-free solid construction. Its extra-deep non‑directional tread is reinforced by a triangular structural design, which enhances traction and stability on surfaces littered with sharp debris. Available in sizes 13.00‑24 and 14.00‑24, the tyre prioritises puncture resistance and reduced maintenance needs.

Thanks to its robust architecture and deep tread profile, the MA801 TR offers an extended service life and consistent performance across demanding work cycles. By eliminating the risk of flats, Magna Tyres positions the tyre as a reliable solution for recycling and industrial operations where continuous heavy loads are standard.

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The Yokohama Rubber Co., Ltd. has secured validation from the Science Based Targets initiative (SBTi), a prominent corporate climate-action organisation, for its greenhouse gas (GHG) emission reduction targets set for 2035. This endorsement confirms that the company’s goals are scientifically aligned with the standards established under the Paris Agreement. The validated targets are measured relative to the company’s 2024 emission levels.

Under the approved framework, Yokohama Rubber aims for a 63.0 percent reduction in combined Scope 1 and Scope 2 emissions, which cover direct emissions from its business activities as well as indirect emissions from purchased energy. Additionally, the company commits to a 37.5 percent cut in Scope 3 emissions, specifically targeting indirect supply chain emissions from purchased products and services, along with fuel and energy-related activities not included in Scope 1 or Scope 2. To achieve these reductions, Yokohama Rubber has been expanding solar power generation and renewable energy electricity at its global plants, while also disclosing indirect emissions from product distribution, use and disposal since 2013.

The company obtained SBTi validation to accelerate supply-chain-wide emission cuts in response to intensifying climate challenges. Operating under its sustainability management slogan, ‘Caring for the Future’, Yokohama Rubber continues to create shared value by tackling social issues directly through its business operations.

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