French tyre giant maintains 2025 outlook amid market volatility and currency headwinds

Michelin reported first-half segment operating income of €1.5 billion, driven by strong pricing effects that offset a 6.1 percent decline in tyre volumes amid challenging market conditions.

The French tyre manufacturer said sales fell 3.4 percent to €13.0 billion in the six months to 30 June, weighed down by depressed original equipment markets and a 1.5% negative currency impact from euro strengthening.

“The Group’s fundamentals are decisive assets in these unstable and highly unpredictable times,” said Managing Chairman Florent Menegaux. “They enable us to manage our activities as closely as possible and adapt to turbulence as best we can.”

Despite the volume decline, Michelin achieved a positive 4.0 percent price-mix effect, reflecting €285 million from contractual indexation clauses and local price adjustments, plus €257 million from shifting towards higher value-added products including larger passenger car tyres.

The company’s segment operating margin compressed to 11.1 percent from 13.2 percent in the prior year period, with the automotive and two-wheel division posting a 12.2 percent margin compared with 13.2 percent previously.

Road transportation proved the weakest performer, with operating margin falling sharply to 5.5 percent from 9.5 percent as North American original equipment markets contracted 19 percent in the first half.

Michelin’s speciality businesses maintained resilience with a 14.5 percent operating margin, supported by growth in aircraft and mining tyre segments, though down from 17.1 percent last year.

The group faced headwinds from raw material cost increases dating to late 2024, which added €240 million to expenses, including costs related to European Union deforestation regulations. Manufacturing and logistics costs rose €175 million, partly due to higher customs tariffs.

Free cash flow before acquisitions turned negative at €102 million compared with positive €669 million in the prior year, reflecting the group’s typical seasonal working capital build-up.

Net income declined to €840 million from €1.163 billion, including a €140 million provision related to the Symbio joint venture following partner Stellantis’s decision to terminate its fuel cell technology programme.

Regional markets showed mixed performance, with European passenger car original equipment demand falling eight percent  and North American markets down five percent, whilst China posted 10 percent growth, supported by government incentives for new vehicle purchases.

In replacement markets, European demand rose five percent and North America gained two percent, though both regions saw increased imports of low-cost Asian tyres amid regulatory uncertainty.

The company announced progressive closures of facilities in Querétaro, Mexico and Guarulhos, Brazil, by the end of 2025, affecting 830 employees, citing market changes and overcapacity from low-priced product imports.

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Eurogrip, a premier two- and three-wheeler tyre brand from TVS Srichakra Ltd., is exhibiting its premium portfolio at Automechanika Dubai 2025 from 9–11 December. The brand's presence at this major global aftermarket trade show marks its third participation. Featured products on display at Stand Z5 - H26 in the Dubai World Trade Centre include the new Trailhound range, comprising the Wild, STR and SCR models, and the Protorq Max prototype.

The showcase also highlights Roadhound, Protorq Extreme, Bee City, Bee Sport, Climber XC, Terrabite DB+ and Beamer VS tyres, alongside popular patterns like Badshah, Badshah LX, Jaya LX and Auto 150. This diverse lineup is the result of advanced research, performance-focused design and sophisticated tyre technology.

T K Ravi, Chief Operating Officer, TVS Srichakra Ltd., said, “Automechanika Dubai continues to be a significant platform for us as we continue to strengthen Eurogrip’s global presence. The expo is a great opportunity for us to engage with partners and customers across the globe, particularly the West Asia, Africa and key Gulf countries. We are delighted to be displaying our high-quality performance-oriented tyres.”

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Galaxy, the off-highway tyre brand owned by Yokohama Off-Highway Tires, has introduced two additions to its construction and mining portfolio at Excon 2025 in Bengaluru, underscoring rising competition in India’s heavy-equipment tyre market.

The manufacturer unveiled the LDSR 500, an all-steel radial tyre for wheel loaders and dozers, and the RTSR 300, a model for rigid dump trucks used in mining and large construction sites. The launches reflect growing demand for tyres engineered to withstand higher loads, harsher terrain and longer operating cycles in India’s infrastructure sector.

Galaxy’s LDSR 500 features a non-directional pattern and deep tread intended to improve stability and extend service life. The RTSR 300 is designed for heavy-load haulage across varied surfaces and incorporates an open-shoulder pattern to aid traction and self-cleaning. Both tyres will be available in compounds tailored to specific applications.

Dyutiman Chattopadhyay, Chief Technology Officer at Yokohama-ATG, said the company aimed to broaden its range of advanced radial and solid tyres for the domestic market. “At Galaxy, we take pride in our customer-centric innovations and are excited to display an array of all-steel radials and large solid tyres that deliver improved wear characteristics and superior & trouble-free performance on tough terrains,” he said. “Our highly automated, state of the art facilities are well-equipped to manufacture customized tyre solutions for the Indian customers and we look forward to serving them.”

Anuj Thakar, Senior Vice-President for India and SAARC at Yokohama-ATG, said India remained a priority region. “India is a key growth market for us and it is a great pleasure to participate in the country’s biggest construction expo,” he said. “Our presence at Excon reflects our commitment to our customers in the region as we continue to provide the best tyre solutions for varied construction needs.”

The Galaxy stand also features several existing products aimed at mining, construction and material-handling fleets. These include the Mine Rock-XT, a nylon-casing tyre for use in both mining and construction; Hulk, a skid-steer tyre engineered for puncture resistance; and the LHD 510 SDS, designed with a deep groove for higher traction and lower heat build-up.

Other models on display include the Giraffe XLW, intended for backhoe loaders; the Yardmaster Radial, used on forklifts; and the LDSR 300 for loaders and articulated dump trucks.

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Goodyear has reversed an earlier plan to divest its farm tyre operations in India, opting instead to retain the business following the conclusion of a strategic review by its US parent company. The decision marks a shift in strategy for the US tyre group, which had been evaluating options for the division amid a broader restructuring programme.

Goodyear India disclosed the development to the Bombay Stock Exchange recetently, noting that the board had “took note of the communication received from The Goodyear Tire & Rubber Co., USA, i.e. the ultimate parent company that it has concluded the previously announced strategic review of its Farm Tire business in India and at this time has made the decision to retain ownership of the business.”

The review, initiated earlier this year, followed a sustained period of mixed performance in India’s agricultural equipment sector, where tyre demand is closely linked to tractor sales and rural income trends.

Retention of the business suggests the company sees continued strategic value in India’s agricultural market, one of the world’s largest for tractor production and a key geography for tyre manufacturers seeking stable demand cycles. The farm tyre segment, although subject to monsoon-driven fluctuations, offers long-term potential due to mechanisation trends and government support for rural development.

Goodyear India remains majority owned by the US group and manufactures a range of tyres for passenger vehicles and agricultural machinery. The company did not outline next steps for the farm division but said the communication from its parent should be taken on record.

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Linglong Tire has honoured its highest-performing dealers at a five-day gathering in London, as the Chinese manufacturer works to expand its international footprint and deepen ties with distributors across key growth markets.

Dealers from Australia, El Salvador, Egypt, Finland, Italy, Poland, Turkey and Uzbekistan were among those invited, having recorded the strongest sales of Linglong Group products in the first half of 2025. The company distributes several brands globally, including Linglong, Atlas (marketed in Australia), and Benchmark in Turkey.

Participants received certificates recognising their sales performance and attended presentations on company strategy and product developments. Some dealers also outlined their own approaches to marketing Linglong tyres in their respective regions, enabling comparisons of market conditions and promotional practices. Linglong said the exchanges offered insight into how its brands are positioned across different markets.

The event concluded with a group visit to the Premier League match between Chelsea and Arsenal. Linglong is the global tyre partner of Chelsea, displaying its branding at the club’s home fixtures at Stamford Bridge.

Shandong Linglong Tire, founded in 1975, operates seven research and development centres and seven manufacturing plants worldwide. The company manufactures tyres for passenger cars, commercial vehicles and engineering equipment, and supplies original equipment to more than 60 automotive manufacturers. Its products are sold through nearly 200,000 outlets in 173 countries.

Linglong continues to expand beyond its Chinese production base, with existing overseas facilities in Thailand and Serbia and plans to add further sites as part of its “7+5” global manufacturing strategy. The company has been an active sponsor of international sporting events and football clubs, including Real Madrid and Chicago Bulls.

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