Fortunately, the third wave of Covid pandemic proved to be a milder one with not much disruption to economic activities. The Union Budget presented last month with its growth-oriented agenda further boosted the sentiment. There is a set of numbers that paints a very encouraging picture of the economy. Foreign direct investment has touched record highs, exports are all set to breach the projected USD 400 billion mark during the current fiscal, GST collections have topped INR 1.30 trillion for fifth straight month and the start-up ecosystem in the country is scripting history.

However, there is a sense of unknown fears lurking around, leaving us with no room for complacency. While we can take solace in the fact that India continues to be the fastest growing large economy, uncertainty in the form of geo-political crisis is looming large on the horizon.

Much of what was feared as a follow-up of the war is already playing out in terms of worsening of the situation. Oil has breached USD 110 a barrel; equity markets have fallen and currencies weakened.

The impact of higher oil prices is going to last longer. Inflation, which has been within tolerance level, is raging its head again. If oil averages close to USD 100 a barrel for a prolonged period, the drag on GDP growth could be up to 0.9 percentage points, inflation could rise by around 1 percentage point and the current account deficit could widen by 1.2 percentage points, says the chief India economist of a leading MNC bank.

A finance ministry report has also admitted that recent geopolitical developments have introduced an element of uncertainty into the economic growth and inflation outlook. Russia's invasion of Ukraine has disrupted value chains and will hurt global and domestic recovery which was underway after the third wave of the pandemic. Worries over inflation and economic growth have surfaced against the backdrop of the turmoil in the global financial and commodity markets, it has stated.

Auto sector, particularly, is yet to come out of the slowdown. The continuing supply side challenges like semiconductor shortages, higher commodity prices and higher logistics cost were already providing headwinds to the industry. As the industry was on the cusp of recovery, Russia Ukraine war has queered the pitch as supply chains are expected to come under stress.

Auto industry is especially impacted in view of the Russia-Ukraine war as both the countries produce some of the key raw materials used in critical auto components such as semiconductors.

The shortage of semiconductors had hampered the production of vehicles, leading to prolonged waiting periods. If geo-political tensions continue for a longer period, it could have long term implications for the auto industry.

The crisis will spike the crude oil prices, which are poised to push up domestic fuel costs, increase the cost of ownership and hence dampen the consumer sentiments.

Commodity prices are already high, and there is a lingering worry that the government will soon hike the fuel prices, which will again have a huge inflationary impact on the overall manufacturing.

Tyre sector too has been bearing the brunt of slowdown in the auto sector. According to the latest data available, production of motorcycle, truck & bus and passenger car tyres – three large categories of tyres – declined by 29 percent, 21 percent and 2 percent, respectively, in the month of December.

There is no denying the fact that this is the time when prudent policies need to be pushed to support the growth amidst global political turmoil and the volatility in the financial markets. And we already have instances where enabling a policy framework has helped the industry win against all odds.

PLI scheme is one such initiative that has helped certain sectors including the auto industry immensely despite a challenging phase. Tyre Industry too has been a key beneficiary of curbs on indiscriminate import of tyres. The same has helped the industry meet the domestic requirements confidently and also cast a wider net in terms of exports. Tyre exports from India have gone up by 60 percent in value terms to reach a historically high figure of over INR 150 billion in the first three quarters of FY22 against the year-ago period. The figure is much higher than the value of tyres exported in the entire FY21 at INR 140 billion.

It is sincerely hoped that geo-political crisis will blow over soon and the political will of the current dispensation towards continuing reforms combined with enterprising zeal and innovative approach of the industry will help overcome the supply chain constraints for India to enjoy its rightful place in the sun.

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The Yokohama Rubber Co., Ltd. has been officially recognised as a DX Certified Business Operator by Japan's Ministry of Economy, Trade and Industry (METI). The designation, which was granted on 1 September 2025, identifies companies that are thoroughly prepared for digital transformation as outlined by the Digital Governance Code.

This certification acknowledges Yokohama Rubber's comprehensive strategy for digital transformation, which is built on three core objectives: advancing business strategy, contributing to sustainability and reinforcing its IT infrastructure. Central to this effort is the company's proprietary AI framework, HAICoLab (Humans and AI ColLaborate), which drives group-wide digital initiatives. These include improving productivity, innovating processes, developing digital talent and building a global cloud-based IT system. The certification confirms that the company's efforts not only meet METI's stringent criteria but also demonstrate appropriate disclosure of information to its stakeholders.

Moving forward, the company said it will continue to leverage data from its entire value chain to adapt to a dynamic business environment. The company aims to enhance customer value, pursue sustainable innovation and transform its corporate culture to strengthen its competitive position and ensure long-term growth.

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TyresNmore, the automotive aftermarket e-commerce platform owned by RPG Group, has promoted Rakesh Tatikonda to Chief Executive Officer and announced the change with immediate effect.

Tatikonda, who previously oversaw business operations at the Mumbai-based firm, will spearhead the organisation’s expansion and innovation strategy. The appointment advances RPG Group’s ‘Talent First!’ policy, which rewards internal promotions and develops employees.

The new chief executive brings over 15 years of industry experience, having worked across multiple sectors with companies such as telecommunications giant Reliance Jio and IT services provider Infosys. Before joining TyresNmore in 2022, Tatikonda held senior positions at tyre manufacturer CEAT, where he developed expertise in strategy, operations, marketing and digital transformation.

“My aim is to transform automotive aftercare in India by offering seamless, tech-driven, end-to-end mobility solutions delivered with trust, transparency, and convenience right at the customer’s doorstep,” Tatikonda said in a statement.

TyresNmore operates a doorstep service model for tyre and battery replacement across six major Indian cities: Delhi NCR, Mumbai, Bangalore, Hyderabad, Pune, and Chennai. The platform represents RPG Group’s entry into the growing automotive aftermarket sector, which has seen increased digitisation as consumers seek convenient maintenance solutions.

During his tenure in operations, Tatikonda scaled the business and improved profitability while driving digital transformation initiatives. His track record shows he strengthened operational efficiency and enhanced customer experience in the mobility convenience sector.

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Vaculug, Europe’s largest independent retreader producing high-quality OTR and truck retread tyres for fleets across the UK and Europe, has expanded its UK presence by acquiring Tyrefair in Kinross, Scotland.

This strategic acquisition extends the company's award-winning service further north, ensuring Scottish customers receive the same high-quality OTR and truck retread tyres Vaculug has supplied for 75 years. Since the purchase, the Kinross location has already grown by 25 percent, with an ambitious target to double its business within a year and then double it again.

This move is a key part of Vaculug's 2026 growth strategy, focused on strategic acquisitions that enable better, faster and more sustainable customer service. The acquisition reinforces Vaculug’s long-standing environmental mission, marking a new chapter of sustainable growth with a strengthened Scottish operation.

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Nokian Tyres is expanding its US presence through a new nationwide partnership with American Tire Distributors (ATD). This agreement provides Nokian access to ATD’s vast network of over 110 distribution centres, serving roughly 80,000 customers.

The collaboration will efficiently supply tyre shops with Nokian’s complete product lineup, enabling dealers to broaden their inventory. Both companies bring 90 years of experience and a shared dedication to innovation, safety and sustainability. This partnership will offer drivers more choices, supported by Nokian’s award-winning Tennessee factory and ATD’s technology-driven logistics.

This enhanced distribution capability ensures that consumers will have greater access to a full spectrum of high-performance tyres, meeting diverse driving needs and conditions. The alliance strengthens both brands' market positions by combining premium products with an unparalleled delivery system, ultimately improving service for dealers and drivers alike across the country.

Chris Ostrander, SVP, North America, Nokian Tyres, said, “The partnership with ATD enables us to reach more tyre shops and more drivers than ever before. ATD’s robust distribution network, customer service and responsiveness strengthen our agility to serve both new and existing customers.”

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