SUMITOMO RUBBER POSTS 34.7% FALL IN TYRE PROFIT AS CHINA SALES SLUMP
- By TT News
- August 07, 2025
Japanese tyre maker cites weak Asian demand, raw material cost pressures
Japanese tyre maker Sumitomo Rubber Industries Ltd posted a 34.7 percent drop in first-half business profit from its core tyre division, weighed down by weak demand from Chinese automakers and higher raw material costs.
The company's tyre business profit fell to 22.2 billion yen for the six months ended 30 June, down from 34.0 billion yen a year earlier, whilst tyre sales revenue declined 1.6 percent to 488.3 billion yen.
Sumitomo Rubber, which owns the Falken brand and recently acquired Dunlop trademark rights in key markets, said overseas original equipment sales dropped significantly due to production cuts by automobile manufacturers in Asia, particularly China.
The challenging market conditions come as major Chinese tyre brands have launched aggressive sales initiatives, creating a tough competitive environment for international brands, including Sumitomo's products.
"Overall sales volume in the Asia-Oceania region was also on par with the level of the same period of the previous fiscal year," the company said in its earnings statement, highlighting the difficulty of maintaining growth in its largest regional market.
In Europe, the company focused on profitability amid intensified price competition, leading to an overall decline in sales volume despite growth in all-season tyres under its Falken brand.
North American performance was mixed, with the flagship Wildpeak series maintaining strong sales but overall regional volumes falling below prior year levels due to continued market share expansion by competitors' low-priced products.
South America provided a bright spot, with sales volume increasing as the company worked more flexibly with distributors and benefited from reduced competitor imports following the rapid depreciation of the Brazilian currency.
The domestic Japanese market showed contrasting trends, with original equipment sales significantly exceeding prior year levels due to production cutbacks at some manufacturers during the same period last year. However, replacement market sales fell due to the discontinuation of low-priced products and declining orders for offtake products.
Raw material cost pressures continued to squeeze margins, with the company noting that "the effect of an increase in the unit price of tyre raw materials reduced the profit as compared with the same period a year ago."
Despite the challenging first half, Sumitomo Rubber maintained its full-year forecast for tyre business profit at 84.0 billion yen, up 1.2 percent from its previous guidance, citing expectations of declining raw material prices and yen depreciation benefits
The company completed its acquisition of Dunlop trademark rights for four-wheel vehicle tyres in Europe, North America and Oceania in May, launching operations in North America and Oceania as its first step in building global brand management around the Dunlop name.
Steelastic Forges Strategic Partnership With IBP For India, Sri Lanka, and Bangladesh
- By TT News
- October 17, 2025
Steelastic LLC, part of the HEICO Companies, has officially announced a new strategic partnership with IBP for the territories of India, Sri Lanka and Bangladesh. In this capacity, the company has welcomed John Powath as its official agent for these regions. Powath is a respected leader within the tyre industry, bringing a wealth of experience from his roles as a Partner at IBP and as a Co-Founder of Automoto. He is also recognised as an active contributor to global tyre and automotive industry events.
Operationally, Steelastic’s Business Development Manager Hemant Agrawal will work in close coordination with the IBP team. Their collective focus will be on strengthening the support infrastructure for customers and driving the growth of Steelastic’s business footprint across South Asia. The company has expressed considerable optimism regarding this collaboration and believes it will unlock substantial new opportunities for its valued customer base in the region, enhancing product access and technical service.
The company statement read: “We welcome John Powath as Steelastic’s official agent in these regions. Powath is a respected leader in the tyre industry, Partner at IBP, & Co-Founder at Automoto, as well as an active contributor to global tyre and automotive events. Moving forward, Steelastic Business Development Manager, Hemant Agrawal, along with the IBP team, will work closely to strengthen customer support and grow Steelastic’s business across South Asia. We are excited about this collaboration and the opportunities it will bring for our valued customers.”
Bridgestone Potenza Sport Dominates EVO’s 2025 Tyre Test
- By TT News
- October 17, 2025
The Bridgestone Potenza Sport has been declared the definitive winner in EVO's 2025 Tyre Test, decisively outperforming eight rival products. Evaluated on a high-powered BMW 135i xDrive with 302 bhp in the size 235/35 R19, the tyre delivered six class-leading results.
The tyre’s dominance was particularly evident in wet conditions, where it achieved the shortest braking distance and top scores for cornering and aquaplaning resistance. The tyre also excelled in dry performance, recording the fastest lap time and a strong third-place finish in dry braking. Test editors praised it as an exceptional and emphatic winner, noting its superb on-road feel and capability in all conditions.
This assessment is further supported by independent TÜV SÜD testing, which confirms the Potenza Sport's superior dry braking, cornering and stability against other premium tyres. Its wet performance is also officially recognised with a top EU 'A' wet grip rating and leading results in wet cornering and handling, solidifying its status as a top-tier ultra-high-performance tyre.
Michelin Fully Deploys TreadEye Technology Across US Retread Network
- By TT News
- October 17, 2025
Michelin has announced the full deployment of its proprietary TreadEye technology across the Michelin Retread Technologies franchise network in the United States. TreadEye is a technology developed to enhance the retread process and deliver value to fleets.
The company stated that TreadEye is a tread depth assessment tool that helps fleets maximise their tyre investment. The system collects 1,200 measurement points accurately and consistently, providing insights into tread wear and casing condition.
Key benefits of the TreadEye technology include:
- Identification of pull points by fleet location.
- Maximisation of rubber on the road by helping to avoid early pulls.
- Helps in prevention of casing damage and helps reduce DOT violations.
- Helps reduce downtime from late pulls.
- Improved efficiency in the tyre removal process, directly affecting a fleet’s bottom line.
Nate Kirian, Vice-President of Sales and Distribution, Commercial Business Lines for Michelin North America, Inc, said, “TreadEye is a game-changer for our retread operations and for the fleets we serve. It’s a powerful example of how Michelin continues to innovate in ways that directly benefit our customers.”
TyreSafe And NTDA Unite For Road Safety
- By TT News
- October 17, 2025
In a significant move for UK road safety, TyreSafe, the nation's dedicated tyre safety charity, has formed a landmark partnership with the National Tyre Distributors Association (NTDA). This alliance represents a powerful consolidation of industry voices, uniting manufacturers, distributors and safety advocates behind the common goals of enhancing road safety, elevating professional standards and promoting positive behavioural change among motorists.
This formal collaboration brings together two central organisations within the automotive aftercare sector. By combining their strategic objectives, they aim to amplify crucial safety messages and deepen engagement with the frontline professionals – retailers, fitters and technicians – who directly influence driver habits. The NTDA, a leading trade association founded in 1930, represents over 300 companies operating more than 2,000 retail outlets across the country, from major national chains to independent family-run businesses.
The partnership will facilitate joint public campaigns, shared research projects and the development of educational resources designed to help both consumers and industry professionals better understand the critical importance of correct tyre maintenance and timely replacement. This collaborative effort is bolstered by compelling new data from the NTDA's recent TyreCheck 2025 study, which examined over 58,000 vehicles. The research revealed a concerning increase in the number of tyres nearing the legal minimum tread depth, underscoring an urgent need for renewed public education on what constitutes a truly roadworthy and safe tyre. Ultimately, this unified initiative marks a new era of cooperation, driven by a shared vision to eliminate the dangers posed by illegal and defective tyres on Britain's roads.
Stuart Lovatt, TyreSafe Chair, said, “This partnership represents a pivotal moment for the tyre industry. TyreSafe and the NTDA share a common goal – to make tyre safety a central part of the national road safety conversation. By combining TyreSafe’s public awareness and behavioural insight with the NTDA’s trade expertise and nationwide reach, we are uniting every part of the tyre supply chain behind one clear message – safe tyres save lives. Together, we can make that message stronger, more consistent and more effective than ever before.”
Ian Andrew, CEO, NTDA, said, “The NTDA has long been committed to raising standards across the tyre trade and promoting the professionalism of our members. Working collaboratively with TyreSafe allows us to take this commitment to the next level – ensuring that retailers, fitters and technicians play a central role in improving driver understanding and road safety outcomes. This partnership will help unify our industry around shared goals, driving both cultural and practical change.”
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