First of all the negative growth had contracted sharply in the second quarter. Pandemic had brought the economy to a grinding halt in the first quarter and the economy collapsed by 24%, arguably the worst contraction in modern history. The contraction eased to 7.5% in the second quarter much less than the 9-11% projected by rating agencies and the analysts. More than that, several economic indicators pointed towards a turnaround.  Be it GST collections, sales of vehicles, industrial output or generation of e-way bills - all regained lost ground in the months of Oct and Nov’20, and some even surpassed the pre-pandemic levels.

It is also evident that corporate India has responded favourably to the Government’s stimulus measures. During the second quarter, sequential recovery from the first one was visible across sectors as the lockdown restrictions eased. Some sectors were even able to bounce back to pre-COVID levels and post revenue growth on an annual basis, confirms an ICRA report.

In this context, the performance of tyre industry offers interesting insights. As the process of unlock commenced and economic activities gathered momentum, tyre industry, though badly badgered during the lockdown,  worked incessantly, braving odds, to catalyse the economic momentum. Tyre production in India was up 17% in Sept’20 in comparison to Sept’19 levels. The production of Truck & Bus tyres, often celebrated as the wheels of the economy went up by significant 39% in Sept against the year ago period.

For years, the tyre industry has been asking for policy enablers to enhance exports from the country. Government has shown political will and has taken some far-reaching policy measures in aid of the industry having appreciated the pain areas coming in the way of its full blossoming.

The industry has responded to these policy initiatives in equal measure. Notwithstanding disruption in international trade following COVID-19 pandemic and protectionist stance being adopted by countries, Indian tyre industry managed to touch a figure of nearly Rs 6000 crore in exports in the first half of the ongoing fiscal year. Impressive export performance in the second quarter compensated for the sharp drop of 23% in tyre exports experienced in Q1 bringing the overall decline down to 7% in the first half of current fiscal.

Having fallen to a low of 26 thousand units of exports in the month of April this year in view of  the lockdown, Truck & Bus Radial (TBR) tyre exports have been on their way up and reached 1.85 lakh units in Sept, the highest ever monthly exports in the category so far.

The recovery in Passenger Car Radial tyres has been rather sterling. From 9 thousand units of exports in April, PCR tyre exports touched a figure of nearly 2 lakh tyres in Sept, again a historic high for the category.  The scenario is no different in case of Motorcycle tyre exports. The month of Sept recorded exports of over 2.5 lakh units, a feat rarely achieved so far.

Farm/ Agri tyre exports from India have witnessed an impressive double digit growth in the first half of FY21 notwithstanding the lockdown. The month of Sept'20 witnessed exports of 3.9 lakh units of Agri tyres, one of the highest marks ever achieved. Moreover, the tyre exports from India have been to some of the discerning markets in the world. US and Germany are the dominant markets for Indian manufactured Farm/Agri tyres accounting for over 30% share. The US has emerged as a major recipient of TBR tyres from India. More than one-third of TBR tyre exports from India were destined for the US during the first half of the current fiscal year..

Tyre industry may provide just one of the glimpses of India’s manufacturing prowess and its ability to rise to the occasion. Recently speaking at a conclave of country's management leaders organised by All India Management Association, RC Bhargava, Maruti Suzuki India Chairman, emphatically stated that India has the capability to become a lower cost producer than China if the industry and the government work together. He rightly argued that the only objective of government policies has to be to increase the competitiveness of Indian industry..

It is hoped that the process of revival of the economy will gather momentum despite the lurking fear of disruptions caused by COVID-19. Here is wishing everyone a very Happy and Safe 2021 .May the trials and tribulations cease in the New Year.

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.