• Domestic tyre volume growth to slow to 4-6 percent in FY2025 due to a high base and subdued commercial vehicle demand.
• Replacement market to remain stable, supporting overall volume expansion.
• Tyre exports to see low single-digit growth after contracting in FY2023.
• High natural rubber and crude oil prices to squeeze margins by 200-300 basis points in FY2025.
• Investments in new capacity to be moderate due to adequate existing capacity and a modest demand forecast.
• Focus on debottlenecking, digitalisation, and R&D for sustainable and smart tyres.
• Organised tyre retreading to grow at a CAGR of 7-9 percent on rising environmental focus and government support.

Domestic Growth to Ease

According to ICRA, India's tyre industry is expected to moderate domestic volume growth in FY2025 due to a high base effect and subdued demand from the commercial vehicle segment. However, healthy replacement market demand and growth in original equipment manufacturer (OEM) sales for passenger vehicles and two-wheelers are expected to partially offset this slowdown.

Nithya Debbadi, Assistant Vice President and Sector Head, ICRA, said: “Tyre exports are expected to remain moderate in the near term because of muted demand growth in key export destinations, namely the US and Europe. Further, supply chain issues arising from the Red Sea crisis have raised freight costs (resulting in increased cost of tyre) and elongated transit times. In terms of domestic factors, despite an elevated base, consumer segments are expected to record a mid-single digit growth (PV at 4-6 percent, 2Ws at 5-7 percent), on the back of healthy underlying demand. However, growth in the CV segment is expected to be impacted by the brief pause in infrastructure activities because of the Parliamentary Elections, with the Model Code of Conduct, which is in force because of the Parliamentary elections, and the impact of high base. Tractor demand growth is expected to be supported by the forecast of above normal monsoons, aiding rural cash flows.”

ICRA expects the replacement market, which contributes to over two-thirds of the industry volumes, to remain stable, aided by healthy demand across the segments. Tyre export volumes, which contribute approximately 25 percent of the industry’s sales (by value), are estimated to have recorded a low single-digit growth in FY2024 after contracting by around seven percent in FY2023, owing to demand shrinkage in key markets amid inflationary pressure and higher interest rates.

 “After a strong growth in two consecutive years, the tyre industry’s revenue growth (consolidated for ICRA’s sample set of seven leading tyre manufacturers) is estimated to have moderated to mid-single digits in FY2024 with estimated domestic volume growth of 6-8 percent, flattish realisations and subdued exports. For FY2025, the industry revenues are expected to grow by 5-7 percent, primarily driven by domestic OEM and replacement segments,” added  Debbadi.

Margins to Contract on Rising Input Costs

Indian tyre companies' operating margins, which soared to 15-17 percent in FY2024 on the back of favourable raw material prices, are expected to take a hit in FY2025. This comes after a sharp increase in input costs since January 2024.

Global supply shortages triggered by adverse weather in Southeast Asia, a key natural rubber (NR) producing region, have caused international NR prices to jump 25-30 percent in the past four months. The RSS3 grade, a benchmark NR type, is currently trading around INR 185-186 per kg, with domestic prices mirroring this rise due to India's reliance on NR imports. This, coupled with increasing crude oil prices, is likely to squeeze tyre industry margins by 200-300 basis points in FY2025, according to ICRA.

Focus on Efficiency and Sustainability

With existing capacity utilisation at 75–85 percent, investments in new plants are expected to be moderate. The industry will likely shift towards debottlenecking existing facilities, process improvements, digitalisation, and research and development (R&D) for sustainable and smart tyres with lower rolling resistance and improved safety features.

Growth in the Retreading Segment

Rising environmental concerns and government initiatives are expected to drive the organised tyre retreading market at a CAGR of 7-9 percent during FY2023–FY2026. Focusing on sustainable practices, improved technology, better road infrastructure, and increasing radialization in the commercial vehicle segment will support this growth.

Credit Metrics to Remain Comfortable

Despite the expected margin contraction, the industry's credit metrics are forecast to remain healthy due to ongoing profitability and moderate capital expenditure plans. The industry is expected to continue investing 6–9 percent of its revenue in capex during FY2025.

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Falken has been named the recipient of the prestigious BRV Service Award, as announced by the German Tyre Retail and Vulcanisation Trade Association during its General Meeting on 8 June 2026. As a brand operating under Dunlop Tyre Europe GmbH, Falken emerged victorious from a competitive online survey where over 250 tyre trade members cast their votes to determine the industry’s most outstanding partner.

This accolade specifically recognises Falken’s superior service standards and its commitment to fostering a reliable and cooperative relationship with its retail partners. The overwhelming vote of confidence from the trade serves as a significant form of recognition for the company, while simultaneously acting as a powerful incentive for the entire Falken workforce to maintain their high-performance levels.

Thomas Langer, Sales Director Germany, Dunlop Tyre Europe GmbH, said, “The news of a top ranking in the BRV Service Award was already a special honour, as it comes directly from the specialist tyre trade. We are now even more delighted to celebrate the overall victory. We would like to express our sincere thanks for this recognition. First place confirms our commitment to offering Falken partners not only reliable and safe products, but above all, dependable service, personalised support and a truly partnership-based collaboration. The fact that the trade has voted the entire team’s efforts into first place motivates us to continue pursuing our goals with determination.”

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The Alliance for the Future of Tires (AZuR) has concluded its participation at The Tire Cologne 2026 with a positive assessment, operating through a network of 19 affiliated organisations across Europe. Their shared exhibition space in Hall 7.1 emerged as a central meeting point during the industry's premier global gathering. Key episodes included a governmental visit, a strategic industry forum and recognition for emerging enterprises.

An immersive installation greeted visitors to the AZuR area, with the entire floor surface consisting of resilient tiles produced from recycled tyre rubber supplied by network affiliate MRH Mülsen. This practical display offered a compelling illustration of how discarded materials can be transformed into functional products. The collaborative exhibition model proved highly favourable among attendees and participating companies alike.

The initiative broadened its collaborative base during the fair, securing commitments from new entities in Germany, Belgium and the Netherlands to advance shared sustainability objectives. North Rhine-Westphalia's environment minister, Oliver Krischer, toured the exhibition as part of a broader initiative to spotlight regional excellence in circular practices, observing demonstrations spanning digital monitoring, alternative materials and recovery processes.

A dedicated assembly on tyre retreading drew roughly 40 specialists from manufacturing, materials supply and trade associations. Conversations revolved around the technology's track record and adaptation to market conditions, referencing recent environmental performance data. Survey feedback indicated robust confidence in retreading's financial and environmental merits, though participants identified competition from lower-cost imports as a primary obstacle.

The programme concluded with the LOOP THE TYRE competition awards. The top honour went to Machine-Vision.io from Reutlingen for its optical evaluation system streamlining used tyre assessment. Sustainable Rubber Solutions from the Netherlands received second prize for its chemical innovation enabling rubber reintegration into new compounds, while Austria's ReTyre project claimed third for developing a scalable devulcanisation method for tyre-to-tyre recycling.

Anna-Maria Guth, AZuR Network Coordinator, said, “TTC impressively demonstrated the high level of interest in a functioning tyre circular economy. We were particularly pleased with the exceptionally positive atmosphere at our joint stand. Our partners see themselves as equal contributors to a common goal and as partners in a strong alliance for the future.”

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Prinx Chengshan marked a significant milestone at The Tire Cologne 2026 in Germany on 9 June, where it officially introduced its Prinx-brand commercial vehicle tyres to the European market. The launch event, held during the prestigious trade fair, served as a commemorative highlight for the 50th anniversary of the Chengshan Group. While the company showcased its full portfolio of brands, including Chengshan, Austone and Fortune, the European debut of the Prinx commercial tyre line commanded the primary focus of industry attendees.

Senior company representatives provided comprehensive insights into the strategic initiative during the event. Officials from the Europe and Americas Sales Center, the R&D Center and the European Technical Center outlined the company's developmental trajectory, manufacturing scale and proprietary technological advancements. The presentations emphasised the integration of intelligent manufacturing systems and global research capabilities, with particular attention given to how the Prinx brand is developing future-oriented commercial solutions tailored specifically for European fleet operators.

The Prinx brand, positioned as a premium offering, leverages three intelligent manufacturing facilities located in China, Thailand and Malaysia, combined with the localised expertise of its European Technical Center. The company has concentrated its research efforts on six core technologies, including low rolling resistance and high wear resistance features, complemented by an intelligent tyre monitoring system. A strategic partnership with Marangoni, a prominent European retreading material manufacturer, further strengthens the brand's comprehensive service capabilities.

For its market entry, Prinx launched three initial product series covering nine tread patterns suitable for long-haul and regional mixed road conditions. Future product expansion plans include tyres for mixed-use applications, city buses, long-distance coaches and winter conditions. Since announcing its European passenger car tyre initiative in Milan in 2023, the brand has rapidly enhanced its product matrix and reinforced its market presence through branding initiatives and sponsorship of major racing championships.

With five decades of industry experience, Prinx Chengshan is accelerating its global strategy through a product-plus-service philosophy. The company aims to deliver customized solutions addressing the complete tyre lifecycle by combining Chinese manufacturing heritage with international research and development networks. This approach positions the company to precisely meet localised European market demands while inviting global partners to contribute to a sustainable transportation future.

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Grady County, Georgia, has successfully addressed the persistent issue of flood-damaged roads by implementing an innovative and sustainable construction method on Lower Cairo Road. The project tackled chronic washouts that had long plagued the area, where conventional repairs consistently failed during heavy rainstorms. The chosen solution involved a significant elevation of the roadway and the reinforcement of its foundation, moving beyond temporary surface fixes to target the root causes of the flooding.

The county utilised a technique known as Mechanical Concrete, which employs recycled tyre cylinders to create a durable and flexible road base. In this process, scrap tyres are processed into cylindrical units and arranged in a grid pattern. These interconnected cylinders are then filled with aggregate, in this case, reclaimed asphalt pavement, to form a robust foundation. This system effectively distributes the weight of traffic and provides superior resistance to erosion, directly countering the forces that previously caused washouts.

The specific work on Lower Cairo Road covered a length of 880 linear feet and a width of 18 feet, raising the road's elevation by 12 inches. The project successfully incorporated 3,300 recycled scrap tyre cylinders, demonstrating a significant commitment to sustainability by diverting waste from landfills. The enhanced drainage and structural stability provided by this method are expected to drastically reduce the frequency and cost of future maintenance, offering a long-term solution to the community's flooding woes.

The success of Grady County’s initiative highlights a scalable and cost-effective approach for other municipalities facing similar infrastructure challenges. This method proves particularly beneficial for rural networks and low-lying regions with limited budgets. By demonstrating how to build resilient roads using recycled materials, Grady County has provided a practical model for enhancing infrastructure durability while promoting environmental stewardship.

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