India’s tyre exporters are bracing for headwinds after the United States imposed a 25 percent tariff on Indian goods, a move analysts warn could erode the industry’s cost advantage and slow growth in a key overseas market.

Tyre exports account for about a quarter of Indian tyre makers’ revenues, with around 17 percent of outbound shipments headed to the United States in FY2025, according to ratings agency ICRA.

The hike, effective 7 August, puts India at a disadvantage to rivals such as Vietnam, Indonesia, Thailand, and the Philippines, which face lower tariffs of 19–20 percent.

“The current increase in tariff will increase the cost of tyres imported into the US significantly,” ICRA said, adding that pass-through of the duties would depend on a supplier’s criticality and share of business.

While Chinese tyres face a higher 30 percent duty, offering some cushion, analysts note that US replacement demand—a major segment for Indian off-highway, truck, and bus tyres—is already weakening amid economic uncertainty and slower auto sales.

ICRA noted that Indian tyre exports grew over nine percent by value in FY2025, driven by strong volumes in off-highway and commercial vehicle tyres. However, it cautioned that “a lower tariff rate for countries like Vietnam, Indonesia, Thailand and the Philippines will be key setbacks for the tyre exports”.

Domestic players will likely scale up exports to Europe and Africa but may face pricing pressure if the US business falters. A 20 basis point cut has reduced India’s FY2026 GDP growth forecast to six per cent over concerns the tariffs could hurt exports, including tyres.

The US move is part of a broader reciprocal tariff regime aimed at narrowing trade gaps. India’s trade surplus with the United States rose to USD 41 billion in FY2025 from USD 21 billion a decade earlier.

Zeon’s Q1 Profit Surges 115 percent In Elastomer Segment Despite Sales Drag From Yen Gains, Lower Raw Material Prices

Zeon reported a 115 percent jump in operating profit from its elastomer business in the first quarter of fiscal 2025, even as net sales across the segment stagnated, squeezed by a stronger yen and lower selling prices reflecting declining raw material costs.

Operating profit in the elastomer unit—including synthetic rubbers used in tyres—rose to ¥4.2 billion from ¥2.0 billion last quarter, as post-maintenance sales volumes improved and fixed costs dropped.

Segment revenue stood flat at ¥58.1 billion, down 4 percent year-on-year, with synthetic rubber sales slipping 2 percent to ¥44.5 billion. Chemicals revenue dropped 12 percent to ¥9.0 billion, while latexes rose 3 percent to ¥3.5 billion.

“Despite the impact of lower selling prices due to falling raw material prices and yen appreciation, both net sales and OP income were up due to higher shipments following the completion of regular maintenance and a reduction in headquarters expense allocation,” the company said in its earnings presentation.

For the full year, Zeon held its net sales forecast at ¥415.0 billion, up 4 percent year-on-year, but cut its operating income outlook to ¥30.5 billion, down 9 percent. The company also reaffirmed its ¥72 per share dividend for FY2025 and continued its 10 million share or ¥10 billion buyback programme.

While sales of general-purpose rubbers declined year-on-year due to export sluggishness and plant shutdowns, Zeon said shipments had rebounded quarter-on-quarter after completing maintenance at its Tokuyama and Singapore plants. Speciality rubbers also posted sequential growth, despite weak overseas demand.

Net profit for the quarter rose to ¥7.5 billion, up 24 percent from the previous quarter, supported by higher gains from investment securities and reduced impairment losses.

Zeon remains cautious for the year’s second half, citing US tariffs, volatile raw materials, and yen fluctuations. The company flagged potential shipment declines for optical films and synthetic rubbers in H2 but expects a recovery in FY2026.

Japan’s ispace, Bridgestone Sign Agreement To Develop Tyres For Lunar Rovers By 2029

Japanese start-up ispace inc. and tyre maker Bridgestone have agreed to jointly develop tyres for small and midsize lunar rovers, targeting Moon use by 2029.

The partnership equips Bridgestone’s elastic wheel technology—designed to adapt to harsh lunar terrain—on ispace's rover prototypes. The companies will conduct Earth-based performance tests before Moon deployment.

“Bridgestone’s lunar rover tyre has a structure of thin metal spokes, enabling flexible deformation while maintaining durability,” said Masaki Ota, Director of OE Business Strategy & Planning/New Mobility Business Division at Bridgestone. “This design delivers superior ability to traverse and shock absorption, allowing the rover to traverse the lunar surface and overcome obstacles such as lunar rocks.”

Bridgestone started developing lunar rover tyres in 2019 and unveiled concept models in April 2025 with lower weight to suit smaller rover platforms.

ispace, known for micro-sized lunar rovers, sees the partnership as key to its long-term lunar economy mission.

“ispace's goal of establishing a new economy on the Moon requires the participation of players from a wide range of industries,” said Takeshi Hakamada, Founder & CEO of ispace. “Bridgestone… is now developing lunar rover tyres for the extreme environments found on the Moon. These tyres will undoubtedly contribute to future human advancement on the Moon.”

The companies said they are also exploring collaboration opportunities through the Space Strategy Fund at Japan’s national space agency, JAXA.

Bridgestone Launches First Aircraft Tyre Tracking System With Cebu Pacific

Bridgestone has officially rolled out its proprietary aircraft tyre management system “easytrack” in collaboration with Cebu Pacific Air, marking the first deployment of the solution by a commercial airline.

The system, launched in April 2025, uses QR codes and a smartphone app to track aircraft tyres across the supply chain—replacing Cebu Pacific’s manual, paper-based process.

“As Cebu Pacific continues to expand its operations, it's essential that we invest in smart solutions that enhance efficiency and reduce manual workload,” said Shevantha Weerasekera, Vice President, Engineering & Fleet Management at Cebu Pacific. “Partnering with Bridgestone to implement the ‘easytrack’ system has enabled us to significantly improve our tyre  management processes significantly, ensuring greater accuracy, safety, and productivity across our operations.”

Bridgestone said the system has halved labour time for inventory management and achieved full tyre tracking accuracy after verification trials at Cebu Pacific’s warehouses, MROs, and maintenance bases.

“As a value co-creation partner, we have proposed solutions tailored to on-site operations based on learnings and insights gained from Cebu Pacific Air’s frontline operations,” said Arata Tomita, Director, Global Aviation Tire Solutions Business Division at Bridgestone. “We are very pleased that the official implementation of ‘easytrack’ has contributed to the improvement of operational accuracy, safety, and productivity.”

Bridgestone said the move aligns with its “Bridgestone E8 Commitment,” with a focus on enhancing efficiency and ecology by supporting sustainable tyre practices and operational productivity.

Giti Tire Unveils Prototype With 93 Percent Sustainable Materials, Targets 2030 Mass Production

Giti Tire has developed a concept tyre made with 93 percent sustainable materials as the Singapore-headquartered manufacturer accelerates efforts to commercialise greener products by the end of the decade.

The prototype combines 53 percent renewable ingredients such as deforestation-free natural rubber, pine-based resin and silica derived from rice husks with 40 percent recycled materials including rubber, carbon black, steel and polyester fibres from plastic bottles.

“For Giti, this stands as both a milestone and a promise—a testament to the possibilities when scientific ingenuity encompasses environmental stewardship,” said Mr. Gao Qiang Sheng, R&D General Manager at Giti Tire. “The Giti team will continue pioneering sustainable ways to improve products while maintaining our signature balance of performance and safety in order to deliver driving enjoyment for all drivers.”

Giti said the tyre achieved a technical readiness score of 9 out of 10, underscoring the viability of its eco-friendly compounds in high-performance applications. Bio-based polymers, next-generation manufacturing techniques and advanced recycling processes all contributed to the breakthrough prototype.

The company is aiming to begin mass production of the material platform by 2030 as part of a broader push to reduce reliance on petrochemicals and lower carbon emissions across its supply chain.

Bekaert Warns Of Weakening Demand As Tariffs And Fx Weigh On Outlook

Belgian steel wire maker Bekaert reported resilient first-half 2025 earnings as strong cash generation and cost control offset softer sales, but warned that tariffs and currency pressures are weighing on demand.

The company posted consolidated sales of €1.9 billion, down 5.2 percent year-on-year, with volumes declining 2.6 percent and price/mix effects stripping out a further 2.2 percent. Underlying EBIT slipped 16.2 percent to €171 million, delivering a margin of 8.8 percent compared with 9.9 percent a year earlier.

Free cash flow surged to €123 million from €43 million in the prior-year period, driven by a €135 million reduction in working capital and €21 million in cost savings as the company continued to streamline operations and rein in capex. Net debt fell to €327 million from €399 million despite a continuing €200 million share buyback programme, €74 million of which has been completed.

“We have continued to focus on what we can control best – cash flow and costs - and have significantly reduced overheads and working capital in H1 2025,” chief executive Yves Kerstens said. “Equally, I am very pleased with the hard work of our teams fighting for volumes in the current challenging markets.”

He added: “We are also taking further steps to make our business units more autonomous and agile. Therefore, I am very confident that we will come out of the current business environment stronger and more cost competitive than ever before.”

Bekaert said volumes were particularly strong in its Steel Wire Solutions and Rubber Reinforcement divisions in the United States and China, while European and Latin American demand lagged. Its Brazilian joint ventures delivered €24 million in net profit share, up from €20 million a year ago.

However, the group cautioned that growing trade tensions – including a rise in US steel tariffs from 25 percent to 50 percent – and the weakening of the US dollar and Chinese yuan against the euro were eroding pricing power and softening orders.

“Following a period of resilience in Q2, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” Bekaert said.

The company now expects slightly lower full-year 2025 sales on a like-for-like basis, with an underlying EBIT margin of between 8.0 percent and 8.5 percent, down from 8.8 percent in the first half.

The Automotive Tyre Manufacturers’ Association (ATMA) has received a historic Special Recognition Award from UK-based tyre safety charity, TyreSafe. This marks the first time the organisation has presented an international award, highlighting the global resonance of ATMA’s extensive efforts in promoting tyre safety across India.

TyreSafe’s award specifically commended ATMA for its profound dedication and highly innovative approach. The association’s multifaceted initiatives have successfully educated over 20,000 participants and conducted inspections on more than 30,000 tyres. A cornerstone of this effort has been the Ideathons programme, which engages youth to develop creative concepts and inspire future road safety advocates, aligning perfectly with TyreSafe’s global vision for safer roads.

This recognition follows years of expansive activity by ATMA and its technical arm, the Indian Tyre Technical Advisory Committee (ITTAC). Their nationwide outreach has included over 200 safety activations, such as roadside clinics, inspection zones at petrol pumps and workshops for schools and universities. They have forged significant institutional partnerships, providing comprehensive training for over 1,000 tanker drivers in collaboration with Indian Oil Corporation and working with various state transport departments.

Campaigns on major expressways have involved inspecting thousands of vehicles and distributing safety materials, while continuous education is provided through webinars, social media and publications. Supported by its member companies, including Apollo, Bridgestone, CEAT, JK Tyre and MRF, ATMA remains dedicated to scaling this crucial outreach. The association continues to urge all stakeholders – from vehicle users to policymakers – to join this vital movement, reinforcing that tyres are not just components but essential life-safety systems.

Arun Mammen, Chairman, ATMA, said, “We are immensely proud that TyreSafe has recognised ATMA’s work in tyre safety. This award underscores our commitment to elevating public awareness and encouraging responsible tyre maintenance through engagement with motorists and institutional partnerships. Our journey continues with the shared vision of making roads safer across India.”

Sudershan Gusain, Head – Tyre Safety Awareness, ATMA/ITTAC, said, “This recognition by TyreSafe validates our extensive grassroots efforts: from petrol pump tyre clinics and university workshops to Ideathons and expressway campaigns. Educating over 20,000 people and inspecting 30,000 tyres is just the beginning. We will keep amplifying our message: proper tyre maintenance is crucial not just for vehicle performance but for saving lives.”

Linglong Germany GmbH has officially moved to a new office in Hannover. Located at Hollerithallee 22, the modern 500 sqm space is designed to integrate sustainable principles and collaborative work environments. It will serve as a central hub for 35 employees spanning research and development, logistics, human resources, after-sales, marketing and sales.

The site includes a state-of-the-art 300 sqm workshop, capable of storing 600 tyres and equipped with advanced technology for tyre data analysis and test vehicle preparation. Furthermore, this new headquarters will serve as the central command centre for coordinating testing activities at the company's permanent tracks in Spain (IDIADA) and in Ivalo in Finland (UTAC). This strategic expansion underscores Linglong's firm commitment to its growth and long-term presence in the European market.

Ceat, the flagship company of the RPG Group, has launched limited edition SecuraDrive Circl, which it claims is India’s first road ready passenger car tyre with up to 90 percent sustainable (bio-based) materials.

The SecuraDrive Circl tyres are said to push the boundaries of sustainability and technology while strengthening the company’s premium positioning. The launch builds on Ceat’s recent introduction spanning CALM technology, ZR-rated tyres and Run-Flat tyres.

Targeted at urban consumers aged 25-45 in Tier 1 cities, particularly from affluent households who view sustainability as both a responsibility and a lifestyle statement, the SecuraDrive Circl combines eco-consciousness, safety and top-tier performance in a single product.

The tyres are developed at Ceat’s state-of-the-art global R&D centre in Halol and is available in two variants – featuring 50 percent and 90 percent sustainable material content. With the latter, Circl becomes the most sustainable passenger car tyre ever road-tested and commercially launched.

The product introduces three global, patented firsts that the company said redefines sustainable tyre technology:

• Unified Biopolymer Inner Liner – a simplified material architecture that reduces manufacturing emissions and sets a benchmark in sustainable design.
• Glycerol-Based Accelerator – a bio-based alternative to petroleum-derived chemicals, ensuring eco-friendliness down to the smallest component.
• Anti-Static Silica Conductive Solution – a novel formulation that eliminates the use of carbon black while preserving electrical conductivity and passenger safety.

Beyond the product, Ceat is pursuing a comprehensive sustainability agenda – from sourcing greener raw materials to introducing circular practices for recycling end-of-life tyres. The SecuraDrive Circl marks a pivotal step in this journey, reinforcing the company’s commitment to shaping a cleaner future for mobility.

The tyres will be available at Ceat’s premium retail outlets and authorised dealerships across key markets from September 2025, priced at INR 12,999 for the 90 percent sustainable variant and INR 8,999 for the 50 percent variant.

Arnab Banerjee, MD & CEO, Ceat, said, “SecuraDrive Circl is a breakthrough that demonstrates how India can set new benchmarks in sustainable mobility. By achieving 90% sustainable content in a fully road ready tyre, Ceat is redefining performance and eco innovation, while reinforcing our journey to become a premium, future ready brand. Sustainability is no longer a choice but a responsibility. This launch reaffirms our vision of leading the transition to greener mobility.”

Lakshmi Narayanan B, Chief Marketing Officer, Ceat, said, “Consumers today are increasingly conscious about the choices they make, especially when it comes to sustainability. With SecuraDrive Circl, we are giving them a product that aligns with their values without asking them to compromise on performance, safety, or style. Circl represents the perfect blend of innovation and eco consciousness, and with this launch, Ceat is proud to set a new benchmark for sustainable mobility in India.”

Sri Lanka has secured a pivotal USD 171 million investment from CEAT OHT Lanka, marking a major advancement for its manufacturing and export sector. This substantial commitment, formalised through an agreement with the Board of Investment of Sri Lanka, stands as one of the most significant recent Indian investments in the country and is set to position Sri Lanka as a premier global hub for off-highway tyre (OHT) production.

A cornerstone of the agreement is a tripartite commitment to workforce stability. A memorandum of understanding between CEAT OHT Lanka, Michelin Lanka and the Inter-Company Employees Union guarantees job security for all 1,483 existing employees. This ensures the full retention of their seniority, salaries and benefits, explicitly ruling out any retrenchments and providing seamless continuity throughout the operational transition.

The project follows CEAT's strategic acquisition of Michelin's Construction Compact Line Business, which includes key manufacturing plants in Midigama and Kotugoda. This move grants CEAT complete global ownership of the Camso brand, cementing its role as a leading international player in this high-value industrial segment.

Arjuna Herath, Chairman, BOI, said, “We welcome CEAT’s significant investment into Sri Lanka, which is among the largest investments from India in recent times. This approval underlines our confidence in CEAT’s vision and will further elevate Sri Lanka’s position as a global manufacturing and export hub.”

Amit Tolani, Chief Executive, CEAT Specialty, said, “BOI’s approval for CEAT OHT Lanka marks a new chapter in our partnership with Sri Lanka. With CEAT’s vision of expanding our global off-highway tyre business, we have great plans for this country. This investment will bring exciting new opportunities for Sri Lanka while playing a central role in our future growth.”

Kumar Subbiah, Chief Financial Officer, CEAT Ltd, said, “Our immediate priority is ensuring a seamless transition while safeguarding jobs and strengthening our operations in Sri Lanka. This investment reaffirms CEAT’s long-term commitment to our employees and to building Sri Lanka as a world-class hub for OHT manufacturing and exports.”