Chinese rubber machinery maker MESNAC is expanding its global reach with a $20m investment in a new manufacturing facility in León, Mexico.

The move is designed to strengthen the company’s presence in the North American market, where Mexico is a key hub for tyre production. MESNAC’s Hong Kong subsidiary will operate the plant.

MESNAC, a leading supplier of rubber processing equipment and systems, reported that nearly 68 percent of its revenue in the first half of the year came from its core business, with the remaining 32 percent generated by its new rubber materials segment.

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Pirelli has made history by becoming the first tyre manufacturer to receive the esteemed ADI Compasso d’Oro Award, one of the world’s most authoritative prizes in industrial design. The award was presented at a special 70th-anniversary ceremony during Expo 2025 in Osaka, Japan. The honouree was the Pirelli P Zero E, recognised in the Design for Mobility category for its innovative approach to sustainable performance.

This recognition aligns with the Expo’s theme, ‘Designing Future Society for Our Lives’, specifically under the pillar of ‘Connecting Lives’, which rewards products that combine advanced technology with reduced environmental impact. The P Zero E is the world’s first ultra-high-performance tyre to incorporate more than 55 percent recycled and bio-based materials. It represents a significant step forward in tyre design, merging technical excellence with circular economy principles without compromising safety or performance.

The tyre has achieved a triple A rating on the European tyre label for wet grip, rolling resistance and external noise – a rare distinction that underscores its balanced capabilities. It is particularly suited for electric and hybrid vehicles, incorporating Pirelli’s Elect technology that can extend vehicle range by up to 10 percent. It also includes the RunForward system, which allows drivers to continue their journey even after a puncture.

Developed using artificial intelligence and data-driven engineering across Pirelli’s global R&D network, the P Zero E stands as a symbol of next-generation mobility. It will be exhibited in the Italian Pavilion at Expo 2025 Osaka before joining the permanent collection of the ADI Design Museum in Milan.

This award continues Pirelli’s long-standing relationship with the Compasso d’Oro, which has previously acknowledged the company’s contributions to industrial and graphic design, further cementing its role as a pioneer at the intersection of technology, sustainability and design.

Piero Misani, Executive Vice President and Chief Technical Officer, Pirelli, said, “This prestigious recognition celebrates Pirelli’s design excellence and the innovative scope of products like P Zero E, confirming the role of research and development as a driver of progress and sustainability. Our constant commitment in the field of R&D has made Pirelli a benchmark in the global industry for technological innovation and cutting-edge solutions for future tyre development, thanks to the use of new materials with reduced environmental impact and the increasingly widespread use of advanced artificial intelligence throughout every phase.”

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Michelin strongly supports the ambition of the Euro 7 regulation and its introduction of particle emission limits for tyre wear, viewing it as a critical step towards sustainable mobility. The company emphasises, however, that the regulation's success hinges on employing a testing method that is both scientifically robust and representative of real-world conditions.

In its view, the only currently viable option is the real-world on-road test, a method developed transparently over six years with European authorities. Michelin considers this approach reliable and reproducible, providing accurate measurements of tyre abrasion under actual driving scenarios. The group expresses serious concerns regarding the alternative laboratory drum test, which it believes is not yet sufficiently developed. Michelin warns that this method's undefined parameters could allow for manipulation and may fail to reflect true emissions, thereby jeopardising the entire regulation's environmental and economic objectives.

This position is reinforced by the company’s proven track record in tyre innovation. Independent testing has shown that Michelin tyres emit significantly fewer particles than the average of other premium manufacturers, a result of decades of dedicated research and development in material science. The company has already demonstrated tangible progress, having reduced wear particle emissions across its product lines by five percent between 2015 and 2020.

Fully aligned with the goals of Euro 7, Michelin is preparing for timely compliance, with plans to adapt all new products by 2028 and its entire automotive range by 2030. The manufacturer believes that a stringent and reliable testing standard will not only protect the environment but also reward genuine innovation and ensure fair competition, validating the long-term investments made by companies committed to a cleaner future.

Florent Menegaux, Chairman, Michelin Group, said, “As Europe becomes aware of the need to support its industry without giving up on its environmental ambitions, the decisions on the Euro 7 tyre testing method perfectly illustrate the choices it faces: either to support innovation and stringency for the benefit of the environment, or to accept compromises that undermine the standard and penalise responsible stakeholders.”

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CHIMEI Group has released its 2024 Sustainability Report, marking the sixth consecutive year of its publication. This annual disclosure underscores the Group’s enduring commitment to operating transparently and reporting on its comprehensive performance beyond mere financial metrics. The report encompasses the activities of the parent company, CHIMEI Corporation, along with its key subsidiaries: Zhenjiang CHIMEI, Zhangzhou CHIMEI and Chilin Technology.

The document highlights numerous sustainability accomplishments from the past year. A flagship achievement is the global recognition of its ‘Fixing Flue Gas CO2 into Polycarbonate Resin’ technology, developed in collaboration with ITRI, which was honoured with a prestigious 2024 R&D 100 Award. This innovation signifies a major advancement in carbon capture and utilisation, establishing a new industry benchmark for circular economy practices and net-zero carbon technologies within the plastics sector. CHIMEI’s leadership in sustainable governance was further validated by international accolades, including the highest Platinum rating from EcoVadis and a top ‘A’ score on the CDP Climate Change Questionnaire.

Beyond technological and manufacturing advancements, the Group’s dedication to environmental and social engagement was exemplified by its ecological documentary, ‘Gifts of the Sun’, which received three awards at the Taipei Golden Eagle Micro Movie Festival.

A significant development accompanying the sustainability report is the official release of CHIMEI’s inaugural TCFD (Task Force on Climate-Related Financial Disclosures) Report. This demonstrates a deepened commitment to climate governance. Having progressively integrated the TCFD framework since 2021, the company has established a structured process for managing climate-related risks and opportunities. The report details its approach across the four core TCFD elements: governance, strategy, risk management and metrics & targets. To implement this effectively, a cross-functional working group was formed to conduct a thorough risk matrix analysis. This process identified and formulated response strategies for critical physical risks, such as flooding impacting operations, and transition risks, including the financial implications of carbon fees and the EU Carbon Border Adjustment Mechanism.

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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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