The Saudi Arabian tyre market is projected to grow significantly in the coming years, driven by a surge in car ownership and infrastructure development.
According to a recent industry, titled “The Saudi Arabia Tire Market, By Region, Competition, Forecast and Opportunities 2019-2029F, prepared by Research and Markets, the market is expected to reach a value of USD 711.8 million by 2029, growing at a CAGR of 4.79 percent in the period of 2023 - 2029. This growth is fueled by factors such as increasing urbanisation, rising disposable incomes and the expansion of the automotive sector.
In 2023, the Saudi Arabian tyre market is value is USD537.57 million, as per the report.
The market is dominated by passenger car tyres, followed by commercial vehicle tyres and two-wheeler tyres. As the country continues to modernise and urbanise, the demand for tyres is expected to remain strong.
However, the market faces challenges such as high import duties and the potential impact of electric vehicles. Despite these challenges, the Saudi Arabian tyre market is poised for continued growth, driven by strong domestic demand and increasing investments in infrastructure.
Continental Posts Strong EcoVadis Debut In New Tyre Category
- By TT News
- July 23, 2026
Continental has been awarded a gold medal in the 2026 EcoVadis Sustainability Rating, securing 84 points out of 100. This elevates the automotive supplier into the global top five percent of companies scrutinised by the Paris-based organisation. The evaluation marked a shift, as the company was examined for the first time under the ‘manufacture of rubber tyres and tubes’ classification, having previously been benchmarked under ‘parts and accessories’.
The highest scores came in environmental stewardship and labour practices, with 86 points earned in each. EcoVadis analysts weighed climate action plans, management frameworks and public sustainability disclosures. The firm's certification portfolio, procurement policies and execution of internal processes also contributed to the final rating.
Continental has boosted renewable and recycled input utilisation to 28 percent of tyre production materials as of 2025, with a roadmap calling for 40 percent by decade's end. Current lines incorporate reclaimed polyester from plastic bottles, repurposed steel, silica from agricultural ash and synthetic rubber from circular feedstocks. The group is intensifying supply web oversight through certified sourcing and binding sustainability clauses for primary vendors.
Absolute carbon output from tyre manufacturing has dropped by roughly 180,000 metric tonnes over four years, driven by cleaner energy carriers. In early 2026, Continental permanently ceased coal and heavy fuel oil combustion across its global footprint. Plants now generate process steam via green electricity, biomass, biogas and a mix of LPG and natural gas for grid stability. Since 2007, EcoVadis has expanded to over 150,000 rated entities, offering a digital platform for buyers and suppliers to compare supply-chain sustainability performance.
Jorge Almeida, Head of Sustainability for Continental’s Tires group sector, said, “Even in our new industry category, with its different assessment criteria, we continue to rank among the top 5 percent of companies worldwide. Our particularly strong score in the environment theme highlights the measures and management approaches we have implemented to achieve our sustainability targets – from using renewable and recycled materials to further reducing emissions at our plants.”
ANRPC To Host Sustainable Natural Rubber Forum In Kochi On 19 August
- By TT News
- July 22, 2026
The Association of Natural Rubber Producing Countries (ANRPC) is convening a major sustainability forum in Kochi, India, on 19 August 2026. The day-long event, running from 9:00 AM to 4:30 PM IST at the Crowne Plaza, represents a critical milestone for the natural rubber sector. Building upon the foundational discussions from the 2025 ANRPC meetings and the recent COP30 conference, the forum will unite member governments, industry leaders, non-governmental organisations and compliance bodies to advance a unified sustainability agenda.
The core objective of the gathering is to secure endorsement for the ANRPC’s Sustainable Natural Rubber Guidelines. A primary focus will be on deploying open-source traceability tools designed to facilitate compliance with the European Union Deforestation Regulation while ensuring that these measures do not impose additional financial burdens on smallholders and small-to-medium enterprises. The thematic discussions will be structured around environmental responsibility, including net-zero strategies, economic sustainability to protect smallholder livelihoods and fair pricing and market adaptation through sustainable finance for emerging sectors like electric vehicles and green construction.
The programme will feature five dedicated sessions covering net-zero pathways, national progress reports from India, Malaysia and Thailand and industry case studies from Indonesia, Cambodia and Vietnam. A key panel discussion will see government representatives and supply chain actors making future commitments. Attendance is targeted at ANRPC member states, supply chain stakeholders, rubber associations, environmental groups and relevant compliance organisations.
Tolins Tyres Subsidiary Acquires Plant And Machinery For Capacity Expansion
- By Sharad Matade
- July 21, 2026
Tolins Tyres Ltd has announced that its wholly owned subsidiary, Terra Rubber Pvt Ltd, has entered into a purchase agreement with Cochin Reclaim and Rubbers Pvt Ltd to acquire plant and machinery as part of its capacity expansion and backward integration strategy.
The agreement, executed on 1 July 2026, involves the purchase of identified plant and machinery from Cochin Reclaim, an unrelated third party. According to the company, the acquisition is intended to strengthen Terra Rubber's manufacturing capabilities through increased capacity and greater backward integration.
Under the terms of the agreement, Terra Rubber will acquire the machinery on an "as-is, where-is" basis. The subsidiary is required to remove the equipment from Cochin Reclaim's premises within 60 days at its own expense. Ownership of each item will transfer only after full payment has been made and the machinery has been physically removed.
Tolins Tyres said the transaction is a routine purchase undertaken in the ordinary course of business and will have no impact on the management or control of the listed company. It added that neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim.
The company also confirmed that the transaction is not a related-party transaction, has been negotiated on an arm's length basis, and that Cochin Reclaim has no relationship with the company's promoter group or board of directors.
Nokian Tyres Posts Sharp Profit Recovery As Romanian Expansion And Premium Strategy Drive Growth
- By Sharad Matade
- July 21, 2026
Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.
Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.
For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.
"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."
Passenger car tyres lead recovery
The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.
Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.
"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.
Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.
Romania becomes a strategic growth engine
Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.
Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.
He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.
"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."
The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.
Investment phase winds down
Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.
Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.
"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.
Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.
Premium positioning remains central
Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.
The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.
Pompei said the strategy remains centred on strengthening brand equity and improving margins.
"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.
Outlook unchanged despite uncertainty
Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.
While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.
"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."
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