Stumbling under the impact of pandemic lockdown, OEM sector is expected to perform under pressure on account of supply and demand disruptions. However, there are positives vibes from the tyre industry, foreseeing steady and stable future. Bing-Lin Wu, Marketing Head, Maxxis Tyres India, globally leading 2-wheeler tyre makers, talked to Tyre Trends on sustainability, future plans, and strong ethos on which the brand stands

The pandemic has created a challenging situation for the OEM’s and the ancillary industries. However, we are hopeful that as the situation gets better, things will move at a steady pace and will open new avenues for the industry. Once out of this uncertainty, our key focus will be to re-energise the production and marketing department, Bing-Lin Wu, Marketing Head, Maxxis Tyres India, told Tyre Trends in a recent interview   

How does pandemic affect production and market strategies?

Maxxis India plant has started operations in a graded manner following all government protocols of social distancing, limited workforce and other safety measures for the employees. The development came after a recent announcement from the state government, which has permitted companies to resume manufacturing operations. During this time of COVID-19, all our marketing activities have been shifted towards internal/stakeholder communication to apprise them effectively about respecting the lockdown.

What is the role of automation in the Maxxis' plants in India?

Maxxis Rubber India is the latest tyre manufacturing plant in the entire global Cheng Shin group. All the processes like Rubber Mixing, Semi Products manufacturing, tyre building and Curing, Material handling, Inspection and Testing are being done by Automatic or Semi-Automatic machines. These machines are equipped with devices like actuators, sensors, PLCs and HMI (Human Machine Interface) systems to reduce human intervention and automate the process. Quality parameters like the circumference of bead wire, green tyre weight, dynamic balancing of tyre and also many other parameters, which are very crucial in tyre making are controlled and monitored by automated sensors. This automated sensor system is not just monitoring the parameters, but they also stop the defective product from going into the next process. As the quality control parameters are controlled at each step of the manufacturing process, it minimises the defect rates in the final product.

How do you evaluate the developed and developing market when it comes to technology, product offerings, and marketing strategies?

Over the years, developing countries have evolved in a big way, paving the way for global manufacturers to explore opportunities that exist in developing markets today. I think India is a glaring example of how the gap between developed and developing countries is shrinking rapidly. Today’s customers are exposed to new technologies, the latest products, and features that have made them aspirations and created disruption in the market for consumer’s good.

Recently you got the mandate from Yamaha for selected models like Ray, Fascino, etc. How is this changing metrics to Maxxis tyres?

Maxxis had a great start this year as we entered into a partnership with YAMAHA. As per the agreement, Maxxis will be supplying BSVI compliant scooter range of Yamaha Ray ZR, Fascino and Ray ZR Street Rally 125 FI. Additionally, we announced another significant association with Yamaha by collaborating with YAMAHA for a one-of-its-kind retail partnership. As per the association, co-branded Maxxis Tyres will be made available for sale at YAMAHA dealerships. Both these partnerships along with another recent partnership with SUZUKI Motorcycle for Access 125 will help elevate Maxxis' presence across key markets in India and scale up the growth of our replacement market portfolio.

Which are the OEMs you are working with and how do you see the business growing in the near future?

Globally we are in the top 10 ten tyre manufacturing company, in the Indian market we have partnerships with top 2-wheeler manufacturers like Honda 2-wheelers, Yamaha Motor India, Hero MotoCorp and Suzuki Motorcycle India. In addition to this, we do supply four-wheeler tyres to Mahindra & Mahindra, Tata Motors, Maruti Suzuki and Jeep in India. Our goal in India is to gain up to 15% market share in the two-wheeler market including OE projects. Our long-term plan for operations includes setting up of five manufacturing plants in different parts of the country to be able to cater to all requirements in the region.

Even though the circumstances are not very favourable at the moment for the automotive sector, but the OEM sector is optimistic as India is fourth-largest automobile market in the world and the Indian tyre industry expects a 7-9 percent growth over FY19-23.

What are your activities to enhance the brand image?

Maxxis Tyres represent strong ethos on which the brand stands for such as Safety, Reliability and Complete Peace of Mind. In 2018, we started a very unique initiative ‘Women in Front’, the program aims to empower and encourage Indian women to experience the freedom of riding and challenge gender stereotypes. As a company with strong biking DNA, we believe that superior performance and safety go hand-in-hand. Through this initiative, we want to equip the women with relevant training and safety practices that will help them take the front seat and pave their own journey without any fear or hesitation. Additionally, we leverage the dealer to meet platforms and industry events to enhance visibility for the brand. For instance, last year we participated in Gujarat Mechanic Auto Expo and Surat International Auto Expo in which we received over 2,500 and 1,500 inquiries, respectively. We also launched social media campaign #PaanchSaalBemisaal, during Lok Sabha elections around the idea, ‘Waade Pe Gaadi Nahi Chalti, Warranty Pe Chalti Hai’. The campaign used humor through a crisp story to establish the brand property connect with the election theme at the forefront and Maxxis 5-year No Questions Asked Replacement Warranty.

What are the benefits of becoming a dealer and engaging in Maxxis dealer program, currently how big is the dealer network and how does it help customers?

We are one of the biggest tyre manufacturing brands worldwide and we are fast expanding in India. We are exploring new tie-ups and synergies, launching new tyre models with plans of setting up new plants. A Maxxis dealer enjoys several benefits- Training Benefits –Shop Boy Training, Canopy Campaign, Fitters’ Meet and Other Benefits –Branding Support, Feature for customers to locate our Dealer online through our site with directions, Sale & Service Support etc. We conduct dealer meets on a regular basis pan India to ensure seamless communication with the dealers. Currently, we have around 2,000 dealers onboard from all over the country. Last year we opened an exclusive retail store in Goa. This is Maxxis Tyres First flagship store in India and will provide the highest quality tyres in India with a strong customer-first approach.

What is your take on tyre retreading?

Understanding the anatomy of genuine retreading is crucial. Having a cost-effective tyre programme in place, including retreading casings wherever possible, is important. Globally, some tyre manufacturers cite that by adopting a high-quality retreading process, excellent performance levels that are equivalent to those of new tyres are assured, along with efficiency and cost savings. Like Tyre making, retreading also involves certain steps to ensure quality, However, in India, many manufactures in the unorganized sector are not following proper steps which have a bad influence on the overall retreading industry affecting the genuine ones. In the case of two-wheelers, retreading is not commercially viable at all, so the rates at which the illegal retreaded tyres are available, provides no doubt that the quality is compromised and is not properly retreaded.

Pirelli has announced the development of specific P Zero tyres for the new hybrid Porsche 911 GTS. This marks the latest collaboration between the tyre manufacturer and the German automaker, extending the availability of P Zero tyres across the entire 911 range.

The tyre maker states that it has engineered a unique version of the P Zero R as the primary fitment for the sports car. This tyre aims to balance performance with daily usability. A new compound provides grip across varied surfaces and weather, with an emphasis on wet conditions. The tread pattern reduces noise and low rolling resistance supports efficiency.

A dedicated P Zero Winter 2 tyre was also created for Porsche 911 owners seeking winter performance. This tyre features a directional tread pattern to improve wet and snow grip, while enhancing braking and handling on dry surfaces.

The tyre development process utilised Pirelli’s Virtual Development Center (VDC) in Breuberg, Germany. This facility employs virtual design and testing, leading to increased precision, a 30 percent reduction in development time and a 30 percent decrease in physical prototypes. The VDC facilitated the optimisation of tyre characteristics for the Porsche 911.

This joint effort represents the latest in a long-standing partnership between Pirelli and Porsche. Pirelli has achieved 338 homologations for all Porsche models, including SUVs, sedans and sports cars with internal combustion, hybrid and electric powertrains. Previous collaborations include the P Zero Trofeo RS for the 911 GT3 RS and the Pirelli Scorpion All Terrain Plus for the 911 Dakar. The P Zero R will be the main tyre for the Porsche 911 GTS.

Continental and Danish transport company DFDS are strongly committed to the development of sustainable logistics. With Europe's biggest fleet of heavy-duty electric trucks, the company uses Conti Eco Gen 5 tyres with optimised rolling resistance and high mileage, as well as the ContiConnect digital tyre management system for continuous monitoring. Both the companies have been collaborating effectively since the beginning of 2023.

With its well-balanced mix of high mileage and improved rolling resistance, the Conti Eco Gen 5 tyre series, which is a specialist for long-distance and regional transportation, powers DFDS' fleet of electric trucks. A quarter of the DFDS fleet is expected to be electrified by 2030. The ContiConnect digital tyre management system guarantees that DFDS monitors all of the fleet's tyres. Additionally, the fleet's range is extended by the digital tyre management system.

One of Denmark's oldest organisations, Det Forenede Dampskibs-Selskab (The United Steamship Company, DFDS) is made up of the business segments DFDS Ferry for maritime transportation, DFDS Logistics for road and rail transportation and DFDS Container Transport. The firm has a large fleet consisting of 70 maritime boats, 3,200 vehicles, and 15,200 trailers. The company has its own shore power infrastructure and charging stations in addition to a sizeable fleet of electric trucks.

Niklas Andersson, Executive Vice President and Head of Logistics, DFDS, said, “We are currently replacing our diesel trucks with electric trucks. We want to drive the transition to more sustainable road transportation and show that zero-emission transport is already a viable solution today. The expansion of our e-truck fleet helps to support more companies in decarbonising their supply chains and underlines our commitment to lead this development.”

Hinnerk Kaiser, Head of Product Development EMEA, Continental, said, “Sustainability and cost efficiency are attracting increasing interest on the market. The optimised rolling resistance and high mileage of Conti Eco tyres ensure that the energy efficiency of the truck increases and CO2 emissions are reduced.”

Carl-Johan Ejserholm, Fleet Manager, DFDS, said, “Thanks to the tyre sensors and the software, we have tyre inflation pressure, temperature and mileage permanently under control, avoid punctures and can carry out tyre changes according to plan. Efficient maintenance helps us to reduce operating costs. This is a benefit for us and a benefit for our customers, a benefit for everyone. By optimally managing journeys, we can minimise downtime for charging on route. More and more of our customers want us to drive battery-electric vehicles for them to further improve their environmental footprint. Digital tyre monitoring contributes to the efficient and more sustainable operation of our vehicles, which has a positive impact on our emission values.”

The German rubber industry has urged for an immediate implementation of the economic turnaround.

Addressing around 250 representatives of member companies of the employers' association of the German rubber industry (ADK) and the wdk at the ‘Day of the Rubber Industry’ event in Berlin, Michael Klein, President, wdk, said, “The economic turnaround manoeuvre must begin immediately. It is incomprehensible that the small key industries, which are so important for the German location, are not mentioned at all in the coalition agreement. The medium-sized companies are unsettled and urgently need planning security. This means an ambitious reduction of documentation and reporting obligations and the fastest possible relief in energy costs.”

According to the association, the regulatory procedures are particularly difficult for small and family-run businesses to comprehend. The German rubber industry is strong and resilient in decision-making, and it brings together major tyre manufacturers and producers of other rubber goods to form a formidable industry. However, it can only fully utilise its potential if the framework conditions are improved, which is the responsibility of the incoming federal government, stressed the wdk President.

Apollo Tyres has strengthened its renewable energy portfolio by acquiring an additional 3.43 percent stake in Green Infra Wind Power Projects Limited (GIWPPL), a wind power producer operating in Tamil Nadu.

In regulatory filings with the Bombay Stock Exchange and National Stock Exchange, the tyre manufacturer disclosed that its shareholding in GIWPPL will increase to 21.27 percent following the purchase of 60,000 equity shares at INR 10 per share, totalling INR 600,000.

The acquisition represents Apollo's growing commitment to green energy as part of its sustainability initiatives. Before this transaction, Apollo held a 17.84 percent stake in GIWPPL, comprising 312,000 equity shares.

GIWPPL, incorporated in July 2011, operates a 24-megawatt wind power project in Tamil Nadu and is a Sembcorp Green Infra Private Limited subsidiary. The company reported a turnover of INR 235.25 million for the fiscal year ended March 31, 2024, up from INR 208.81 million in the previous year.

This investment aligns with Apollo Tyres’ broader strategy to increase its renewable energy sourcing while potentially reducing its carbon footprint and energy costs across its manufacturing operations. Apollo Tyres stated the objective of the acquisition is for “procurement of wind power.”