The GST Council’s 56th meeting delivered major relief for India’s tyre industry, slashing rates on new pneumatic tyres to tractor tyres. The move, aimed at reducing input costs and supporting rural demand, has been welcomed by manufacturers, though retreaders caution the reforms risk sidelining sustainability.

Sharad Matade and Gaurav Nandi

The Goods and Services Tax (GST) Council, in its 56th meeting, lowered the GST rates on a range of tyre and rubber products on Thursday, in a move aimed at easing input costs for the farming community and providing a much-needed relief to the domestic tyre manufacturing sector. 

The decision, taken by the GST Council, reflects the government’s strategy of supporting rural demand while simultaneously addressing industry grievances over high taxation and duty anomalies.  

One of the headline changes is the reduction of GST on latex rubber thread, which has been cut from 12 percent to 5 percent. Similarly, tyres and tubes used in tractors, a critical expense for farmers, have seen their GST rates slashed from 18 percent to just 5 per cent. 

Rear tractor tyres and their corresponding tubes, along with tyres specifically meant for agricultural tractors, will also benefit from this lower rate.  

The most significant change for the industry is the decision to reduce GST on new pneumatic tyres of rubber, excluding those used in bicycles, cycle-rickshaws, aircraft, and tractors, from the highest slab of 28 per cent to 18 percent. 

Automotive Tyre Manufacturers’ Association (ATMA) welcomed the decision, stating, “Lower GST on tyres will translate into more affordable mobility for millions of users, starting from farmers and small traders to transporters, motorists and logistics operators. It will also help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy,” said ATMA Chairman Arun Mammen. 

ATMA further noted that the reduction in GST rates on tyres will support road safety. High prices often discourage vehicle owners from timely tyre replacement, leading to extended use of worn-out tyres, which is a known risk factor for accidents. With the tax burden eased, tyre affordability will improve, encouraging motorists and fleet operators to replace tyres at the right time, thereby enhancing vehicle and passenger safety on roads.

Industry reactions

According to ICRA, the GST rate cut on most tyre categories is expected to boost domestic replacement demand, which makes up nearly two-thirds of India’s tyre market. Lower operating costs will benefit transport operators, improving fleet profitability and cash flows, while reduced logistics costs across industries are set to fuel aftermarket demand.

In addition, lower GST on new vehicles in entry-level, mid-range, and tractor segments should support OEM tyre demand through higher production and sales. The cut on tyre cord fabric, though a small cost component, is also margin-accretive.

In addition to the broad restructuring of tyre-related tax slabs, the GST Council has also moved to reduce the levy on key raw materials used in tyre production. Tyre cord fabric of high tenacity yarn, whether made of nylon, other polyamides, polyesters or viscose rayon, will now attract a Goods and Services Tax of 5 percent, down from the earlier 12 percent.

Exuding optimism on the move, CEAT Chief Executive Officer Arnab Banerjee noted, “We welcome the GST Council’s decision to rationalise tax rates in the tyre sector. The reduction of GST on new pneumatic tyres from 28 percent to 18 percent and the further relief for tractor tyres and tubes to 5 percent, is a progressive step that will significantly benefit the industry. This reform will make tyres more affordable for customers across commercial, agricultural and passenger vehicle segments, while also supporting rural mobility through lower input costs for farmers.” 

Commenting on the market impact of the revised rates, Partner and Automotive Tax Leader at EY India for the Auto sector, Saurabh Agarwal, said, “The rationalisation of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry. The discontinuance of the cess is a particularly pragmatic step, which will provide much-needed support to a sector that is a vital contributor to our nation’s GDP.”

Commenting on the development, Shantanu Deshpande, Chairman, CII Task Force on Tyre and Managing Director, Michelin India, noted, “Thanks to the government for reducing GST rates on important products, including tyres. These changes will help lower costs for manufacturers and make tyres more affordable for consumers, while also enabling simplification and ease of doing business for the tyre industry. These changes complement the robust growth and improvement made in our road infrastructure and will further boost the growth of the industry. The new rates will support local manufacturing, encourage investment, increase business volumes and help India become more self-reliant in tyre manufacturing. We deeply appreciate this enabling decision.”

Commenting on the issue, Senior Vice President, India & SAARC, Yokohama-ATG, Anuj Thakar, said, “The cut in GST from 18 percent to 5 percent on tractor tyres and tubes and 28 percent to 18 percent on new pneumatic tyres is a historic reform that will directly benefit the farmers and off-highway tyre customers in India. As makers of Alliance and Primex Tires, we see this GST reduction as an opportunity to assist our consumers in choosing the right application-specific mobility solutions at lower operating costs.”

Retreaders’ woe

While the council’s move is slated to benefit the OE and aftermarket, retreaders aren’t happy. 

Tyre Retreading and Education Association Chairman Karun Sanghi said, “The GST on retreading remains stuck in the same slab despite representations to the GST Council even two weeks ago. The government promotes recycling and reducing carbon footprint, but has overlooked retreading in its policies. Tractor tyres have GST reduced to 5 per cent, while retreading is still at 18 per cent. This narrows the price gap between new and retreaded tyres, hurting demand for retreading and undermining recycling and carbon goals. Ideally, GST on retreading should have been reduced to 5, in line with new tyres.”

Currently, 80–90 percent of the retreading market is truck tyres, while 10–15 percent is farm, OTR and tractor tyres. The industry expects a significant impact on the tractor and commercial segments. 

However, Sanghi noted that as an association, they will continue to approach the government, highlighting the retreading and environmental benefits, though lobbying power is far weaker compared to other organisations in the industry, which may explain why retreading’s concerns are often sidelined.

While the GST cuts mark a win for tyre makers and farmers, retreaders remain burdened by an unchanged rate. This threatens recycling demand and carbon reduction efforts even as affordability improves for new tyres. The industry now looks to the government for parity that balances growth with environmental goals.

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The Yokohama Rubber Co., Ltd. has unveiled its comprehensive motorsports activity plan for the 2026 season. The company views its participation in global motorsports as essential for advancing tyre technology and reinforcing the ADVAN and GEOLANDAR brands. Its strategy encompasses a diverse range of events, from top-tier championships to grassroots competitions worldwide.

Key championships and series

• SUPER FORMULA: Yokohama Rubber has renewed its exclusive agreement as Official Tyre Partner and control tyre supplier for Japan's premier racing series, a partnership dating back to 2016. The new contract extends through the 2030 season. For 2026, the company will supply ADVAN racing tyres featuring a high renewable and recycled raw material ratio of approximately 46%. The series will also introduce the SUPER POLE QUALIFYING Supported by YOKOHAMA TYRE, a three-stage knockout format.
• SUPER GT: Yokohama will supply ADVAN racing tyres to one car in the GT500 class and 17 cars in the GT300 class, aiming for victories and a championship title in the latter.
• Nürburgring 24-Hour Race: Yokohama will supply ADVAN racing tyres to three teams: Haupt Racing Team, KONDO RACING with Rinaldi, and BMW M Motorsport. This marks the first collaboration with BMW M Motorsport in nearly 40 years, with ADVAN tyres fitted to two BMW cars entered by Schubert Motorsport and a special fan-focused BMW entry. Tyres will also be supplied for the Nürburgring Langstrecken-Serie (NLS).
• Porsche Sprint & Endurance Challenges: For the sixth consecutive year, ADVAN racing tyres will serve as the control tyre for the Porsche Sprint Challenge North America and Porsche Sprint Challenge USA West. It will also be the control tyre for the Porsche Endurance Challenge North America for the third straight year.
• Ford Mustang Cup: Yokohama will again supply ADVAN racing tyres as the control tyre for this one-make series, which features the Ford Mustang Dark Horse R.
• American Off-Road Racing Championship (AORC): Yokohama has become a supporting sponsor of this newly launched premier desert racing series. The company will supply GEOLANDAR tyres to top teams competing in the championship, which includes renowned races like Best in the Desert and The Mint 400.

Other major events and disciplines

• Hill Climb: At the Pikes Peak International Hill Climb, Yokohama will supply ADVAN racing tyres to top drivers and continue sponsoring and providing the control tyre for the Pikes Peak GT4 Trophy by Yokohama.
• Off-Road Races: Yokohama will seek a second consecutive overall win at the Asia Cross Country Rally (AXCR) using GEOLANDAR M/T G003 tyres. In North America, the company will support the King of the Hammers (as title sponsor of the Every Man Challenge), the Championship Off-Road series (with GEOLANDAR X-AT and A/T4 tyres), and the TrophyLite Series (supplying GEOLANDAR M/T G003 as the official specification tyre for the eighth year). They will also supply tyres for the XCR Sprint Cup Series in Japan.
• Rally: In the Japanese Rally Championship (JRCA), ADVAN rally tyres will be supplied to top JN-1 class teams, including the NUTAHARA Rally Team (with an ADVAN-coloured car) and SUBARU Team ARAI. Yokohama will also support the TOYOTA GAZOO Racing Rally Challenge for a second year.
• Drift: For FORMULA DRIFT JAPAN (FDJ), Yokohama will supply ADVAN NEOVA AD09 tyres to teams in the top FDJ class and provide control tyres (ADVAN NEOVA AD09 for FDJ2, ADVAN APEX V601 for FDJ3). The company will also supply ADVAN tyres to a team competing in the D1 GRAND PRIX.
• Speed Competitions: In Japan, Yokohama will supply ADVAN A052 and A050 tyres for the All Japan Gymkhana Championship and a range of ADVAN tyres for various surfaces in the All Japan Dirt Trial Championship.

Participatory & Grassroots: Yokohama will support grassroots events globally, including supplying ADVAN dB V553 tyres as the control tyre for the new CATERHAM CUP JAPAN. The company also announced its Yokohama Motorsports Scholarship 2026 programme to support participants in Japanese rally, gymkhana and dirt trial competitions.

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Hankook Tire is set to showcase its advanced commercial tyre portfolio at the inaugural Road Transport Expo (RTX) Ireland, scheduled for 15 and 16 April 2026 at the Eikon Exhibition Centre in Lisburn. Hankook will display the pioneering e-SMART City AU56 EV bus tyre, the new Smart Work AM11+ for regional distribution, the versatile SmartFlex range for long-haul applications and value-focused Laufenn commercial tyres. Organised by the team behind the successful RTX Stoneleigh and RTX Scotland events, RTX Ireland 2026 brings a dedicated truck focus to Northern Ireland. With over 50 exhibitors and an expected attendance of more than 7,000 visitors, the event serves as a crucial hub for the Irish road transport sector to network and discover industry-shaping innovations. Attendees can find Hankook alongside its exclusive distributor, TyreCall and Tractamotors, at Stand C15.

Among the featured innovations is Hankook’s pioneering e-SMART City AU56, the brand’s first electric bus tyre introduced in 2024. Engineered for the unique demands of electric urban transport, this tyre offers low rolling resistance for extended range, reduced noise for enhanced passenger comfort and robust durability to manage the high torque and heavier loads of electric vehicles. Also on show will be the recently launched Smart Work AM11+, a tyre specifically developed for the rigours of regional and local distribution. Its design provides strong resilience against the wear and tear of stop-start operations, making it ideal for demanding sectors like waste management, with reinforced sidewalls for extra protection.

For fleets covering regional and long-haul routes, Hankook will present its SmartFlex range. The SmartFlex AL51 for steer axles and DL51 for drive axles are engineered for consistent performance throughout their lifespan. Reflecting Hankook’s commitment to sustainability and cost-efficiency, these tyres are both regroovable and retreadable. Complementing the Hankook portfolio, visitors can also explore the Laufenn brand, including the Laufenn365 initiative. The Laufenn commercial range, featuring the LF95+ trailer tyre, LF22 all-position tyre and LZ22 drive tyre, leverages Hankook’s advanced technology to deliver strong value, full retreadability and a reduced environmental footprint, catering to budget-conscious operators. This participation underscores Hankook’s growing leadership in the UK truck tyre replacement market, driven by continuous innovation and tailored solutions for an evolving industry.

Jon Cottrell, Truck and Bus Sales Manager, Hankook Tyre UK, said, “We are looking forward to the first Road Transport Expo in Northern Ireland – it’s a fantastic opportunity to build meaningful connections and stay informed on the latest developments shaping the industry. 2026 marks the inaugural RTX Ireland and our first time exhibiting in Northern Ireland, which makes it particularly exciting. We’re proud to be attending alongside our exclusive distributors, TyreCall and sister company, Tractamotors, who we have had a strong partnership with for the last 40 years. We look forward to welcoming both existing and prospective customers to our stand while gaining valuable insight into the Irish truck tyre market.”

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The Tire Industry Project (TIP) has released the updated Product Category Rules (PCR) for tyres in collaboration with UL Environment. This revision establishes a more robust framework for measuring environmental performance and promotes consistent transparency throughout the tyre sector.

A Product Category Rule serves as a standardised guide for manufacturers to conduct lifecycle assessments and create Environmental Product Declarations that enable meaningful comparisons between similar products. Valid for the next five years, the revised PCR integrates current scientific findings, including enhanced methods for tracking greenhouse gas emissions. It reflects modern production realities such as the adoption of renewable energy in manufacturing plants and incorporates evolving vehicle technologies like improved fuel economy and alternative fuel sources. The update also mandates uniform reporting when new materials are introduced, simplifying the monitoring of sustainability advancements.

Independently adopted by the 10 member companies of the Tire Industry Project, which collectively account for 60 percent of global tyre production capacity, this fourth edition encourages wider voluntary implementation across the industry. Developed through collaboration among major manufacturers, the PCR standardises how environmental footprints are calculated from raw material extraction through disposal, ensuring comparability of Environmental Product Declarations. This comparability supports environmentally conscious purchasing decisions and fosters ongoing improvements in sustainability across the value chain.

Key enhancements include refined carbon footprint calculations addressing biogenic carbon, expanded applicability to all tyre categories including off-road and specialty tyres and greater regional accuracy by incorporating localised data on end-of-life tyre management, vehicle efficiency, energy mixes and payload considerations. The methodology now provides a clear hierarchy for assessing impacts in multi-product manufacturing environments, aligns impact indicators with the European Commission’s Environmental Footprint 3.1 framework and updates raw material datasets and emission factors for improved data quality.

UL Solutions, an independent safety science organization, collaborated closely on developing and publishing this updated PCR.

Dr Larisa Kryachkova, Executive Director, TIP, said, “The updated PCR reflects years of collaboration and investment to advance sustainability across the tyre value chain. Our goal is to strengthen environmental reporting. With a common methodology, we support better industry-wide decision-making, turning ambition into positive environmental action.”

Ranee Valles, Director and General Manager – Product Sustainability, UL Solutions, said, “Transparent, standardised reporting enables manufacturers, regulators, fleet operators and consumers to make informed choices about the products they use or supply. Our collaboration with TIP reflects a shared commitment to credible, science-driven solutions, and we’re grateful for TIP’s leadership in advancing scientific rigour and industry alignment on environmental reporting.”

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Sun Auto Tire & Service, one of the largest independent tyre and automotive service providers in US, has expanded into Colorado by acquiring 23 locations from DAS Drive Automotive Services, marking its entry into the state. This move establishes a notable presence for the company in the greater Denver area while simultaneously enhancing its existing footprint in Arizona. As a result, the Sun Auto Network broadens its service coverage throughout the Southwest region.

With the integration of these locations into the network, customers will now benefit from an expanded suite of offerings. These include access to well-known national tyre brands, the implementation of digital vehicle inspections and an extended range of service capabilities. Furthermore, a nationwide warranty, supported by over 575 locations across the country, provides added assurance. The acquired shops will also tap into shared operational resources, benefit from advanced training initiatives and utilise integrated technology systems, all designed to ensure a uniform and high-quality experience for customers and support for technicians.

This strategic growth is in line with Sun Auto's overarching goal of sustainable expansion. The company prioritises partnerships with established operators who demonstrate a strong dedication to service excellence, the professional development of their teams, and deep-rooted community ties. Through this latest acquisition, the Sun Auto Network continues to extend access to dependable automotive care while reinforcing the communities and personnel fundamental to its ongoing success.

Chris Ripani, Chief Operations Officer, said, "We're excited to welcome these respected brands and their teams to the Sun Auto Network. Each of these businesses has built strong relationships in their communities by delivering dependable service and taking care of customers the right way. That commitment aligns perfectly with the values we look for in every partnership."

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