Indian tyre manufacturer grapples with Mexico subsidiary challenges whilst accelerating capacity investments and EV market push

JK Tyre and Industries Ltd is confronting significant trade headwinds in its Mexican operations whilst pressing ahead with ambitious expansion plans and positioning for India’s electric vehicle revolution, senior management revealed recently during the company’s quarterly review.

The Delhi-based manufacturer’s Mexican subsidiary, JK Tornel, has been severely impacted by uncertainty surrounding US trade policies. Management acknowledges operational disruptions despite recent clarifications on tariff structures.

Tariff Turbulence Hits Mexico Operations

According to Arun K Bajoria, Director and President International, JK Tornel faced considerable challenges throughout the financial year as shifting US trade policies created market uncertainty.

“There was complete uncertainty in Mexico, supplying to the US because of the Trump tariff; there was no certainty and every time, the dates were sort of getting shifted,” Bajoria explained. “So there was a complete uncertainty in the minds of the customers based in the USA.”

The Mexican subsidiary, which derives approximately 60 percent  of its revenue from domestic markets with the remainder split between exports to the United States and Latin American countries, has been forced to recalibrate its strategic focus.

“Our strategy now is increasing our sales to the domestic market, that is number one, and also to Brazil market and then to Latin American markets,” Bajoria said, outlining the company’s response to trade uncertainties.

Recent policy clarifications have provided some relief, with automobile tyres continuing to benefit from zero-duty exports from Mexico to the United States. However, management acknowledged that customer confidence remains fragile.

“This clarification has been ascertained recently. So, the on-the-ground in terms of the US customers is still sleeping in, and we have communicated the notifications, etc., to them,” Bajoria noted.

Major Investment Programme Gathers Pace

Despite external challenges, JK Tyre is accelerating its capacity expansion with ongoing projects worth INR 14 billion across passenger car radial (PCR), truck and bus radial (TBR), and all-steel light truck radial segments.

Managing Director Anshuman Singhania confirmed that capacity utilisation levels remain high across all plants. The company operates 11 manufacturing facilities globally and produces over 35 million tyres annually.

“The projects which we have already been implementing are on track, and we will have the capacities available from these projects in this financial year 2026,” said Chief Financial Officer Sanjeev Agarwal, indicating capital expenditure of approximately INR 9 billion planned for the current fiscal year.

In Mexico, a separate US$27 million passenger car radial expansion project is progressing. It specifically targets larger rim size tyres to enhance revenue and profitability potential.

Electric Vehicle Market Push Intensifies

The company is aggressively positioning itself in India’s rapidly expanding electric vehicle segment, where it has established dominant market positions across multiple categories.

“We enjoy almost 70 percent market share across all OEMs. We are also supplying tyres in the replacement market,” Singhania said, highlighting supply relationships with leading manufacturers, including Tata Motors, Ashok Leyland’s Switch Mobility, JBM, and Eka Mobility.

The electric bus segment currently contributes 7 percent of India’s total bus industry, with projections indicating growth to 10 percent driven by government policy interventions. In the last-mile connectivity segment for small commercial vehicles, JK Tyre commands a 50 percent market share with Tata Motors’ electric variant.

The company is also expanding its presence in the two—and three-wheeler electric segment, supplying prominent manufacturers such as Ola Electric, Ather, and Pure Electric.

“By 2030, we are estimating around 1.33 million units, which amounts to 20 percent of the passenger vehicle production in the country,” Singhania projected for electric passenger vehicles.

Strategic Market Response

Management indicated that raw material price stabilisation is providing operational relief, and despite ongoing global volatility, the company expects continued stability over the coming quarters.

The company’s diversified geographical footprint, with subsidiary operations including Cavendish Industries contributing significantly to consolidated performance, is helping mitigate regional market challenges.

“We believe the US tariff in the medium to long term is unlikely to have a significant impact on the auto sector and the tyre industry,” Singhania said, expressing confidence in the company’s strategic positioning despite near-term uncertainties.

The ongoing scheme of amalgamation between subsidiary AIL and JK Tyre has received regulatory approval from SEBI and awaits final clearance from the National Company Law Tribunal, which is expected to further streamline operations.

Comments (0)

ADD COMMENT

Link Copied!

India will once again be represented at the world's most formidable rally raid as veteran racer Sanjay Takale prepares for his second attempt at the Dakar Rally in 2026. This event, renowned as the ultimate endurance challenge, will see Takale draw upon his disciplined approach and decades of international racing expertise across both motorcycles and cars. His participation underscores a continued, though rare, Indian presence on this global motorsport stage.

Takale’s previous campaign was historically successful, culminating in an 18th-place overall finish. Framing his upcoming effort as an evolved chapter, he is focusing on intensified preparation and strategic refinement. This return is fuelled by over 35 years of accumulated track insight and a sharpened competitive perspective.

In addition to his driving career, Takale’s role as Director of aerpace Industries allows him to champion broader national ambitions in engineering and mobility. He consistently frames motorsport as a dynamic proving ground for core industrial principles like precision, systemic endurance and meticulous execution.

Ultimately, Takale's journey back to the Dakar starting line symbolises India's growing footprint in international motorsport. It is a narrative built not on fleeting speed but on profound experience, resilience and a dedicated pursuit of excellence under the world's most extreme racing conditions.

Takle said, “My first Dakar was an extraordinary experience. Dakar changes you once you race it; you are never the same. It challenges you mentally, breaks you down and teaches you resilience, discipline and the true meaning of fighting back. I emerged not just as a stronger driver but as a different person altogether. This year, my focus is clear to return, finish the rally again and significantly improve my position. I will once again be competing for my team, aerpace Racers, with technical support from Compagne Sharenne, France. I am proud to represent India as the only four-wheeler entry for the second consecutive year. My goal is simple: to see the finish line and to finish stronger.”

Comments (0)

ADD COMMENT

Link Copied!

Hankook Tire has been honoured with a Ministerial Commendation by the Ministry of Trade, Industry and Resources of Korea. The honour was conferred at the 2025 Outstanding Overseas Investment Contributors Awards, an event hosted at the Korean Cultural Center in Budapest, Hungary, designed to recognise firms that enhance national competitiveness through global investment. During the ceremony, the company's leadership detailed its achievements to an audience of diplomatic officials and fellow Korean businesses operating in the region.

The award celebrated Hankook Tire's excellence across four critical areas. Economically, its strategic manufacturing base in Rácalmás, Hungary, established in 2008, has become a significant contributor to the Korean economy through consistent profit repatriation. The company has also acted as a catalyst for other Korean enterprises, enabling market entry for supply chain partners while securing its own strategic alliances within Europe, thereby strengthening the collective agility and global standing of Korean industry.

Beyond commerce, the company's deep local social commitment was highly recognised. The Hungarian plant is a cornerstone of the regional economy, having multiplied its local workforce to approximately 3,000 employees and maintaining this stability even through periods of global economic uncertainty. This commitment extends through extensive community outreach, including the long-term donation of tyres to enhance public and private mobility safety, alongside targeted investments in local infrastructure, social welfare and youth scholarships.

Furthermore, Hankook Tire serves as a central pillar for the Korean business community in Hungary. By holding leadership roles in major business associations, the company facilitates essential dialogue and practical cooperation, helping to resolve common challenges and support the sustainable operation of Korean enterprises in the market. Through this powerful combination of economic performance, social integration and community leadership, Hankook Tire exemplifies the impactful role of responsible overseas investment in fostering mutual growth and strengthening international ties.

Ho Taek Lim, Managing Director of Hankook Tire Hungary plant, said, “As a representative company with deep roots in Hungary, Hankook Tire is committed to fostering unity within the Korean community and supporting the successful establishment of Korean companies entering the market. Through close collaboration with local institutions, we will continue enhancing the competitiveness of Korean companies in Europe while advancing Korea’s national interests.”

Comments (0)

ADD COMMENT

Link Copied!

Apollo Tyres Ltd has introduced the Vredestein Comtrac 2+, a new summer tyre engineered for light commercial vehicles. Set for a European launch in January 2026, this premium model will be available in 21 sizes for rims from 15 to 17 inches, including extra-load variants for heavier demands. It builds upon its predecessor with significant advancements in durability, efficiency and overall performance, aiming to lower the total cost of ownership for fleet operators.

A key innovation is a fourth-generation polymer compound, which boosts abrasion resistance by 13 percent. This advancement extends tread life, reduces replacement frequency and minimises the release of microplastics from wear. The tyre’s construction includes a reinforced bead area and a robust carcass for enhanced stability and reliability under heavy loads, improving vehicle uptime. Safety in wet weather is addressed through a specialised silica filler and an efficient tread pattern designed to prevent aquaplaning by rapidly dispersing water.

Furthermore, the Comtrac 2+ achieves a seven percent reduction in rolling resistance, improving fuel economy for conventional vehicles and helping to extend the driving range of electric and hybrid vans. Every aspect of the tyre is crafted for maximum longevity and cost efficiency, supporting business operations with fewer interruptions. The product also meets the stringent requirements of the European Union Deforestation Regulation, aligning with contemporary environmental and sustainability standards.

Yves Pouliquen, Vice President, Commercial EMEA, Apollo Tyres Ltd, said, “With the Comtrac 2+, we set out to address the changing demands of today’s light commercial vehicle operators, whether independent trade professionals or major fleet managers. Our R&D Team has engineered the tyre to deliver longer tread life, lower rolling resistance and a safer, more comfortable ride that drives greater efficiency – all at an accessible price point.”

Comments (0)

ADD COMMENT

Link Copied!

MRF Tyres has once again proven its motorsport pedigree by securing the 2025 FIA European Rally Championship Team Title. The official accolade was presented at the season-ending FIA Awards Gala in Tashkent, where Vice-Chairman and Managing Director Arun Mammen collected the trophy. This gala represents the pinnacle of the international motorsport calendar, formally recognising champions from across the discipline.

This victory marks the team’s third ERC crown, following previous successes in 2022 and 2023. It was earned through a campaign defined by remarkable consistency and adaptability across diverse rally stages. Strategic tyre choices and seamless coordination between the team’s personnel, engineers and driving crews were fundamental to this achievement, highlighting the programme’s overall strength and the reliability of its products.

The company has extended its appreciation to every individual who contributed to this result. The recognition at such a distinguished forum reinforces the company’s commitment to excellence and cements its position as a leading force on the global rally stage.

Mammen said, “We are deeply honoured to receive the Team Title at such a prestigious occasion. This award recognises not only the work of our engineers and staff, but also the spirit, dedication and resilience of the entire MRF Tyres organisation, both on and off the stages of the 2025 European Rally Championship. When preparation, performance and passion come together, tyres can make the difference. This trophy underlines our commitment and encourages us to continue delivering our very best in the seasons to come.”

Comments (0)

ADD COMMENT

Link Copied!