JK Tyre achieved record revenue of INR 40.26 billion, driven by strong domestic demand and a strategic shift in export markets.

JK Tyre & Industries reported its highest-ever quarterly results, with consolidated revenue of INR 40.26 billion in Q2 FY2026. This performance was supported by double-digit volume growth in key segments and enhanced operational efficiency.

Profit after tax rose 54 per ent year-on-year to INR 2.23 billion, and EBITDA margins increased to 13.3 percent. This marks a significant turnaround for India’s tyre sector, which has faced volatile raw material costs and uncertain export conditions in recent quarters.

Domestic Market Powers Growth

Domestic volumes increased 15 percent, led by a 22 percent rise in truck and bus radial (TBR) tyre replacements. Passenger vehicle tyre replacements grew 16 percent, while the two- and three-wheeler segment saw exceptional growth of 155 percent.

“The demand has been very good. In fact, the demand is touching double-digit,” said Anshuman Singhania, Managing Director of JK Tyre, in a media roundtable. “We are seeing long hauls coming in because of better infrastructure. So demand is pretty good, and demand is going to be in a very steady trajectory going forward.”

The company attributed strong domestic results to GST rationalisation, improved monsoons supporting rural demand, and increased government infrastructure spending. Management also noted that dealer inventories have normalised, offering better visibility into true demand.

Strategic Export Pivot Pays Off

Despite uncertainty regarding US tariffs, JK Tyre increased export volumes by 13 percent quarter-on-quarter. The company has diversified its exports, with North America now accounting for only 3 percent of total revenue.

“We have diverted most of our exports from the US to other markets,” Singhania explained. The company has strengthened its presence in the Middle East, Europe, Latin America, and Brazil, whilst continuing to serve the US market through its Mexican manufacturing facility.

JK Tornel, the Mexico subsidiary, reported a 26 percent sequential increase in turnover to INR 6.39 billion, up from INR 5.05 billion in the previous quarter.

Premiumisation Strategy Takes Hold

JK Tyre’s focus on premium segments has driven margin improvement. Tyres with rim sizes of 16 inches and above now account for 27 percent of the passenger vehicle mix, up from 18 percent in FY2018.

This strategy aligns with market trends, as sport utility vehicles now make up about 65 per cent of India’s passenger vehicle market, requiring larger, higher-margin tyres. JK Tyre has expanded its premium range, including the Levitas brand and products like Puncture Guard, which have gained acceptance among OEMs and in the aftermarket.

“Our premium products like Levitas, innovative products like Puncture Guard have really got the fancy of our channel partners as well as some of the OEMs,” Singhania said. The company recently supplied 18-inch tyres for Hyundai’s Creta Night Edition, marking its deepening engagement with premium OEM specifications.

Sanjeeva Garwal, Chief Financial Officer, emphasised that the company is not abandoning value segments entirely. “We are not leaving the space in the non-premium segment, which is continuing because we have the capacity,” he noted, adding that new capacity expansions are specifically dedicated to premium and larger rim size tyres.

Capacity Expansion on Track

JK Tyre is investing INR 14 billion to expand capacity. New passenger car radial capacity will be fully operational by July 2026, with additional truck radial capacity set to begin in the fourth quarter of this fiscal year.

Radial tyre production is operating at over 90 percent capacity, and overall utilisation is 87 percent, indicating limited room for growth without expansion. Management is closely monitoring the market for potential future capacity additions.

The company manufactures tyres up to 22 inches in Mexico and 20 inches in India, positioning itself to meet increasing demand for larger sizes as vehicle premiumisation advances.

Raw Material Tailwinds Continue

Improved profitability has been supported by favourable raw material costs, which have declined from Q4 FY2025 through Q2 FY2026. Management expects this trend to continue for the rest of the year.

The company passed on the full benefit of GST rationalisation to consumers whilst maintaining pricing discipline. “Right now, in the second quarter, we have not increased any prices, and going forward, we are always assessing the competitive market because it is a dynamic market,” Singhania said.

Outlook and Guidance

JK Tyre expects to maintain double-digit volume growth for the year, even as the auto and tyre industries are projected to grow 6-7 percent. The company anticipates low single-digit growth in truck tyres, mid single-digit growth in truck radials, and mid-to-high single-digit growth in passenger car radials.

Management described the outlook for the second half as very positive, citing ongoing infrastructure investment, recovering rural demand, and normalised inventory levels across distribution channels.

While JK Tyre remains focused on four-wheeled applications, Singhania noted that the defence sector, which includes tyres for trucks, passenger vehicles, and armoured vehicles, accounts for a high single-digit share of revenue and offers growth potential as India’s defence procurement increasingly favours domestic suppliers.

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The Tyre Recovery Association convened its Briefing Day 2026 at Coombe Abbey Hotel in Warwickshire, drawing more than 100 senior figures from the UK tyre recovery, retreading, retail and manufacturing sectors alongside national regulators, parliamentarians and trade bodies. The event served as a platform to press for meaningful reforms covering tyre recovery, green procurement and domestic circular resilience.

Tessa Munt, the MP for Wells and Mendip Hills, delivered a keynote address that attacked the enduring disconnect between government policy rhetoric and industrial reality. Drawing on her parliamentary work regarding end-of-life tyre exports to India and her engagement with Somerset businesses, she condemned official inaction and set out four priority areas for reform, criticising a reliance on superficial slogans while domestic capacity lies stranded.

The MP highlighted what she described as a double standard, noting that the Environment Agency imposes strict Digital Waste Tracking on compliant domestic operators while granting misplaced goodwill and deadline extensions to non-compliant overseas exporters. Before the rules were diluted, proof-of-arrival compliance stood at just 20 percent. She further noted that more than 150,000 tonnes of licensed UK recycling and remanufacturing capacity remains entirely idle while raw waste is shipped abroad.

Her proposed reforms comprised the immediate statutory withdrawal of T8 exemptions to establish an audited permit regime, adoption of the Australian shred-only export model to end whole and baled tyre exports, instant revocation of export licences for brokers failing to supply timestamped and geotagged proof of delivery and mandatory green public procurement quotas for remanufactured tyres and rubberised asphalt. The RAC Foundation's Steve Gooding also addressed the conference, explaining that a modest 10 percent rubberised asphalt target in public highway contracts would absorb all idle UK crumb capacity, reduce road noise by three to five decibels and produce longer-lasting roads. Strong participation from the Tyre Recovery Association (TRA), the National Tyre Distributors Association (NTDA), the British Tyre Manufacturers' Association (BTMA) and the Imported Tyre Manufacturers Association (ITMA) underscored growing cross-sector unity.

Peter Taylor OBE, Secretary General, TRA, said, "The TRA Briefing Day proves that the British tyre recovery sector is united, highly innovative and ready to grow. Having around 100 key players and all four leading trade associations in one room shows that our industry is speaking with one voice. If the UK’s tyre recovery sector does not grow, it will soon disappear from these shores. We are gradually making progress in getting government to understand this, but there is a long way to go. We have the domestic processing infrastructure, the technical capability and the private capital ready to build a world-class circular economy. What we lack is a regulator and a government willing to back domestic industry by ending illegal whole tyre exports and enforcing green procurement. Tessa Munt MP highlighted this in her powerful speech. We are very grateful to her, Steve Gooding and all those who spoke yesterday, as well as our sponsors Vaculug, Murfitts and KwickFit. These contributions made the event an overwhelming success. The message from industry is clear: the time for policy talk is over, we need to statutory reform."

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TyreSafe, UK’s leading tyre safety charity, has entered a new partnership with West Yorkshire Police, reinforcing a joint commitment to road safety and reducing fatalities and serious injuries across the county. The collaboration arrives amid concerning road safety figures, with 51 deaths and 1,210 serious injuries recorded on West Yorkshire’s roads in 2025.

The two organisations will work together to highlight the essential role tyres play in road user safety. Drivers will be encouraged to perform routine checks on tyre pressure, tread depth and overall condition. The initiative also supports West Yorkshire Vision Zero, which aims to eliminate deaths and serious injuries from the county’s roads.

West Yorkshire Police becomes part of a growing network of over 260 organisations partnering with TyreSafe to promote safer motoring and enhance public understanding of tyre safety. A rising number of police forces now recognise tyre safety as a vital component of their broader road safety efforts.

As the sole point of contact between a vehicle and the road, properly maintained tyres are critical for braking, steering and grip, especially in difficult conditions. TyreSafe advises road users to check their tyres monthly and before long journeys, helping identify pressure, tread and condition issues before they become safety risks. This partnership marks another significant step in TyreSafe’s mission to reduce tyre-related incidents and improve road safety across Britain.

Stuart Lovatt, Chairman, TyreSafe, said, “We are delighted to welcome West Yorkshire Police as a TyreSafe partner. The fact that 51 people lost their lives and more than 1,200 suffered serious injuries on West Yorkshire’s roads in 2025 is a stark reminder that there is still so much work to do. Road safety requires a collective effort, and partnerships such as this are incredibly important. By combining the reach and expertise of West Yorkshire Police with TyreSafe’s specialist knowledge and campaigns, we can help ensure more road users understand the simple but crucial role their tyres play in keeping themselves and others safe.”

Inspector Claire Gray, Roads Policing Support and Proactive Intercept Team Inspector for West Yorkshire Police, said, “Every death and serious injury on our roads has a devastating impact on families, friends and communities. We are committed to working with partners to make West Yorkshire’s roads safer and to support the Vision Zero ambition. Vehicle safety is an important part of that work, and tyres are fundamental to a vehicle’s ability to stop, steer and maintain grip. We are pleased to be working with TyreSafe to help raise awareness and encourage road users to take responsibility for checking and maintaining their tyres.”

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Hankook Tire has completed a significant expansion of its European manufacturing facility in Rácalmás, Hungary, marking the company's first production of truck and bus tyres on the continent. The new line, representing an investment of EUR 540 million, is scheduled to commence operations in October and has been configured to deliver more than 800,000 units annually. The first pre-production tyre from these facilities was officially unveiled at the ongoing IAA Transportation exhibition.

Previously, Hankook supplied European commercial vehicle customers exclusively from plants in Korea and China. The Hungarian line substantially reduces delivery distances, strengthening supply reliability and cutting lead times. Logistics-related carbon dioxide emissions also decline as lengthy transport routes from Asia are partially eliminated. Europe represents roughly 45 percent of Hankook's worldwide sales, making it a critical market for the tyre maker.

The Rácalmás site has received approximately EUR 856 million across three earlier expansion phases since 2007, with the third stage finishing in spring 2015. It now produces as many as 17 million tyres yearly for passenger cars, SUVs and light commercial vehicles. The fourth phase added the truck and bus tyre line and has seen around 66,000 square metres of production and support buildings constructed since 2024. More than 450 local jobs are being created. Globally, Hankook operates eight plants with capacity for up to 100 million tyres annually and employs about 20,000 people.

Designed as a highly automated facility, the new line relies on automated logistics systems, autonomous guided vehicles and real-time tracking to manage material flow and warehousing, while automated testing ensures consistent quality. Sustainability guided planning and operation through energy-efficient systems, optimised supply infrastructure and modern process controls that lower energy and water use. The plant earned ISCC PLUS certification in 2023. Production will initially centre on 22.5-inch truck and bus tyres, gradually broadening as capacity and approvals allow.

Jongho Park, President and COO, Hankook Tire Europe, said, “The expansion of our European production plant with a new line for truck and bus tyres is yet another key milestone for Hankook in Europe. The central location of the facilities in Hungary and their proximity to the core European markets is a key locational advantage. It will enable us to supply our European customers with premium commercial vehicle tyres even more reliably and quickly, and to respond to their needs with the greatest possible flexibility.”

Ho Taek Lim, Vice President and Managing Director of the plant in Rácalmás, said, “This expansion project was one of the largest industrial development projects ever undertaken at the site in Hungary. The new truck and bus tyre production facilities will transform the plant into a comprehensive production site of significantly greater complexity and with a higher level of automation.”

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Continental has expanded its global ultra-high-performance tyre portfolio, covering sizes 18 inches and above, over five years and plans further growth. By late 2027, it will add over 650 new sizes across all lines for original equipment and replacement markets. This responds to demand for tyres suited to larger, heavier, more powerful and electrified vehicles, supporting profitable growth.

UHP tyres for passenger cars and light commercial vehicles now matter more to Continental and its customers. From 2020 to 2025, their share of global passenger-car tyre sales across all brands rose from 41 to 55 percent. Asia-Pacific leads at 70 percent, the Americas at 66 percent and EMEA at 43 percent. For the Continental brand, the share grew from about 49 to 62 percent.

The trend towards larger tyres links to vehicle market shifts. Cars are becoming bigger, heavier and more powerful, with SUVs increasingly common. Electric mobility is another weight driver, since batteries add considerable mass. Modern drivetrains also produce torque once associated only with high-performance sports cars. These changes demand more from tyres, which must support heavier loads while ensuring safety, efficiency and comfort.

UHP tyres combine high grip, short braking distances and precise handling with low rolling resistance and high mileage. Continental develops them mainly for wheel-and-tyre combinations of 18 inches and above, performance SUVs, premium sedans, sports cars and high-performance electric vehicles. It is expanding this range across major markets, adding over 650 sizes by the end of 2027, including secondary brands such as Semperit and Uniroyal.

This reflects growing vehicle market diversification, as manufacturers offer more variants and need tyres tailored to differing performance, efficiency and comfort requirements. UHP tyres must meet conflicting demands, balancing grip, braking, handling, rolling resistance, comfort and mileage, with rubber compounds playing a central role. Continental relies on simulations, laboratory analyses, bench tests and driving tests across varied conditions, with the High Performance Technology Center in Korbach driving manufacturing advances applied globally, where UHP tyres up to 24 inches are made.

Testing occurs at the Contidrom near Hannover, Arvidsjaur in Sweden and Uvalde in Texas, focusing on braking, handling, high-speed capability, comfort and durability. Collaboration with tuners ABT Sportsline and BRABUS, plus motorsport input through Hoosier, further advances development. The SportContact 7 exemplifies the segment, available from 18 to 24 inches and approved by Audi, BMW, BYD, Maserati, Mercedes-Benz, Polestar, Porsche, Volkswagen and Zeekr, ranking top three in 27 of 29 international tests.

Edwin Goudswaard, head of Research and Development for Continental’s Tires group sector, said, “With our expanded UHP portfolio, we are responding directly to the increasing demands of modern vehicles. This enables us to offer our customers around the world even more tailored solutions for safety, efficiency and driving dynamics. As modern tyres become larger, heavier and more powerful, tyres are becoming even more critical. They are no longer simply the vehicle’s connection to the road, but a key prerequisite for safety, efficiency and driving dynamics. The UHP segment clearly demonstrates how capable modern tyres need to be. The art lies in combining conflicting requirements at the highest level, and that is precisely what sets our tyres apart.”

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