Linglong Tire, one of the world's leading tyre manufacturers, will make its debut with a stand at Autopromotec in Bologna, Italy, from 21 to 24 May 2025. The company will exhibit its main brand, Linglong, together with the two Group brands, Crosswind and Leao Tire, which are also sold in Europe, in Hall 20 (booth no. C 68).

The company will display the most significant Linglong passenger vehicle profiles, including the Sport Master and the Linglong Sport Master e, which has been tuned for NEVs. Along with new original equipment tyres that Linglong will provide straight to the OEM manufacturing line, the stand's main attraction will be the new Linglong van tyre Dura Master Van e, which will mark its global debut in Bologna. Also on display will be the primary Linglong truck tyres, all of which are produced in the recently constructed European tyre factory in Serbia, together with a variety of special tyres (OTR). The most significant car and truck tyres from the Leao Tire brand will also be on display, along with the newest Crosswind brand profiles, which are made solely in Europe.

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The GST Council’s 56th meeting delivered major relief for India’s tyre industry, slashing rates on new pneumatic tyres to tractor tyres. The move, aimed at reducing input costs and supporting rural demand, has been welcomed by manufacturers, though retreaders caution the reforms risk sidelining sustainability.

Sharad Matade and Gaurav Nandi

The Goods and Services Tax (GST) Council, in its 56th meeting, lowered the GST rates on a range of tyre and rubber products on Thursday, in a move aimed at easing input costs for the farming community and providing a much-needed relief to the domestic tyre manufacturing sector. 

The decision, taken by the GST Council, reflects the government’s strategy of supporting rural demand while simultaneously addressing industry grievances over high taxation and duty anomalies.  

One of the headline changes is the reduction of GST on latex rubber thread, which has been cut from 12 percent to 5 percent. Similarly, tyres and tubes used in tractors, a critical expense for farmers, have seen their GST rates slashed from 18 percent to just 5 per cent. 

Rear tractor tyres and their corresponding tubes, along with tyres specifically meant for agricultural tractors, will also benefit from this lower rate.  

The most significant change for the industry is the decision to reduce GST on new pneumatic tyres of rubber, excluding those used in bicycles, cycle-rickshaws, aircraft, and tractors, from the highest slab of 28 per cent to 18 percent. 

Automotive Tyre Manufacturers’ Association (ATMA) welcomed the decision, stating, “Lower GST on tyres will translate into more affordable mobility for millions of users, starting from farmers and small traders to transporters, motorists and logistics operators. It will also help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy,” said ATMA Chairman Arun Mammen. 

ATMA further noted that the reduction in GST rates on tyres will support road safety. High prices often discourage vehicle owners from timely tyre replacement, leading to extended use of worn-out tyres, which is a known risk factor for accidents. With the tax burden eased, tyre affordability will improve, encouraging motorists and fleet operators to replace tyres at the right time, thereby enhancing vehicle and passenger safety on roads.

Industry reactions

According to ICRA, the GST rate cut on most tyre categories is expected to boost domestic replacement demand, which makes up nearly two-thirds of India’s tyre market. Lower operating costs will benefit transport operators, improving fleet profitability and cash flows, while reduced logistics costs across industries are set to fuel aftermarket demand.

In addition, lower GST on new vehicles in entry-level, mid-range, and tractor segments should support OEM tyre demand through higher production and sales. The cut on tyre cord fabric, though a small cost component, is also margin-accretive.

In addition to the broad restructuring of tyre-related tax slabs, the GST Council has also moved to reduce the levy on key raw materials used in tyre production. Tyre cord fabric of high tenacity yarn, whether made of nylon, other polyamides, polyesters or viscose rayon, will now attract a Goods and Services Tax of 5 percent, down from the earlier 12 percent.

Exuding optimism on the move, CEAT Chief Executive Officer Arnab Banerjee noted, “We welcome the GST Council’s decision to rationalise tax rates in the tyre sector. The reduction of GST on new pneumatic tyres from 28 percent to 18 percent and the further relief for tractor tyres and tubes to 5 percent, is a progressive step that will significantly benefit the industry. This reform will make tyres more affordable for customers across commercial, agricultural and passenger vehicle segments, while also supporting rural mobility through lower input costs for farmers.” 

Commenting on the market impact of the revised rates, Partner and Automotive Tax Leader at EY India for the Auto sector, Saurabh Agarwal, said, “The rationalisation of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry. The discontinuance of the cess is a particularly pragmatic step, which will provide much-needed support to a sector that is a vital contributor to our nation’s GDP.”

Commenting on the development, Shantanu Deshpande, Chairman, CII Task Force on Tyre and Managing Director, Michelin India, noted, “Thanks to the government for reducing GST rates on important products, including tyres. These changes will help lower costs for manufacturers and make tyres more affordable for consumers, while also enabling simplification and ease of doing business for the tyre industry. These changes complement the robust growth and improvement made in our road infrastructure and will further boost the growth of the industry. The new rates will support local manufacturing, encourage investment, increase business volumes and help India become more self-reliant in tyre manufacturing. We deeply appreciate this enabling decision.”

Commenting on the issue, Senior Vice President, India & SAARC, Yokohama-ATG, Anuj Thakar, said, “The cut in GST from 18 percent to 5 percent on tractor tyres and tubes and 28 percent to 18 percent on new pneumatic tyres is a historic reform that will directly benefit the farmers and off-highway tyre customers in India. As makers of Alliance and Primex Tires, we see this GST reduction as an opportunity to assist our consumers in choosing the right application-specific mobility solutions at lower operating costs.”

Retreaders’ woe

While the council’s move is slated to benefit the OE and aftermarket, retreaders aren’t happy. 

Tyre Retreading and Education Association Chairman Karun Sanghi said, “The GST on retreading remains stuck in the same slab despite representations to the GST Council even two weeks ago. The government promotes recycling and reducing carbon footprint, but has overlooked retreading in its policies. Tractor tyres have GST reduced to 5 per cent, while retreading is still at 18 per cent. This narrows the price gap between new and retreaded tyres, hurting demand for retreading and undermining recycling and carbon goals. Ideally, GST on retreading should have been reduced to 5, in line with new tyres.”

Currently, 80–90 percent of the retreading market is truck tyres, while 10–15 percent is farm, OTR and tractor tyres. The industry expects a significant impact on the tractor and commercial segments. 

However, Sanghi noted that as an association, they will continue to approach the government, highlighting the retreading and environmental benefits, though lobbying power is far weaker compared to other organisations in the industry, which may explain why retreading’s concerns are often sidelined.

While the GST cuts mark a win for tyre makers and farmers, retreaders remain burdened by an unchanged rate. This threatens recycling demand and carbon reduction efforts even as affordability improves for new tyres. The industry now looks to the government for parity that balances growth with environmental goals.

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Kumho Tire, one of the world’s leading tyre manufacturers, has signed an agreement to join hands with professional rugby union club Leicester Tigers as Official Partner.

As per the partnership agreement, the Kumho branding will be featured on the men’s matchday shirt for the next five seasons. Apart from this, a host of other collaborations – including pitchside branding, stadium activations and joint promotional campaigns – are also on the cards.

Andrea Pinchen, Chief Executive Officer, Leicester Tigers, said, “This is an exciting deal, bringing in a global brand of Kumho’s standing to our club and beginning what we know will be a wonderful relationship. We are incredibly protective of our name and brand, so only partner with the very best of which Kumho represents. On behalf of the club, I want to thank Kumho for its commitment to our club and look forward to working together.”

Richard Lyons, Managing Director, Kumho Tyre UK, said, “Kumho Tire is delighted to partner with Leicester Tigers and to engage with their loyal fanbase in the UK and around the world.  We are incredibly proud to be associated with the club’s rich heritage and look forward to adding value to our customers’ experience of the Kumho brand whilst also supporting the club’s wider community. Our two brands share many values, especially that of teamwork, and we believe there will be excellent opportunities for development and growth over the coming seasons.”

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The Rubber Board of India has announced a financial assistance scheme for SC Community rubber growers to support the purchase of rubber rollers for sheet processing in 2025. Eligible applicants can receive a subsidy of INR 40,000 or 80percent of the machine's cost, whichever amount is lower.

Interested growers must submit their applications online via the 'ServicePlus' portal on the Rubber Board's website by 31 October 2025. All required documents should be uploaded with the application. For further details, individuals can contact Rubber Board Regional Offices, Field Stations or the Board's Call Centre.

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Sailun Group has achieved a significant sustainability milestone, earning an ‘A’ rating from Morgan Stanley Capital International (MSCI) in its latest Environmental, Social and Governance (ESG) evaluation. This prestigious upgrade from a ‘BB’ rating makes Sailun the first tyre manufacturer in China to receive this high grade from the globally recognised index provider.

The MSCI ESG assessment is a comprehensive international framework that analyses corporate performance across environmental impact, social responsibility and governance standards. It is a critical tool used by institutional investors worldwide to guide decision-making.

This upgraded rating signifies strong international acknowledgment of Sailun's dedicated efforts in key areas, including product quality and safety, robust corporate governance, progressive employee management and its environmental initiatives. This achievement not only underscores Sailun Group's commitment to sustainable operations but also solidifies its position as a global leader with influential ESG practices.

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