India's tyre industry has warned that steep new US tariffs could severely damage the country's export momentum to its largest overseas market, as manufacturers face duties of up to 50 percent compared with lower rates for regional competitors.

The Automotive Tyre Manufacturers' Association (ATMA) stated on Wednesday that the tariff increases place Indian exporters at a significant disadvantage compared to rivals from China, Thailand, Vietnam, Cambodia, and Indonesia, which continue to benefit from substantially lower duties.

Under the new structure, Indian tyre exports will face tariffs of 50 percent on most categories and 25 percent on specific segments, the industry body said.

The United States accounts for 17 percent of India's tyre exports across more than 170 countries. In the financial year 2024-25, India's total tyre exports exceeded INR 250 billion for the first time, with the US market contributing over INR 43 billion.

"The Indian tyre industry has invested over INR 280 billion in recent years to expand both greenfield and brownfield capacities to meet rising domestic and global demand. Hike in US tariffs will severely constrain the ability of Indian manufacturers to sustain export momentum established in the last few years, particularly since the US is our largest export destination," said Arun Mammen, Chairman of ATMA.

The industry is already grappling with competitive pressures from inadequate government support schemes, ATMA said. The current RoDTEP (Remission of Duties and Taxes on Exported Products) rates for tyres stand at 1.3 per cent and 0.8 per cent under Advance Authorisation, which is well below the three per cent offered under the previous MEIS (Merchandise Exports from India Scheme).

ATMA has called for RoDTEP benefits to be increased to four percent and extended to tyre exports under Advance Authorisation. The association also seeks to raise duty drawback rates to 10 percent from the current 3.6 percent, arguing that existing rates fail to offset duties on imported raw materials ranging between 7.5 percent and 20 percent.

The sector faces additional challenges from a domestic natural rubber shortage, forcing manufacturers to import nearly 40 percent of their requirements for this critical raw material. ATMA has urged the government to permit duty-free imports equivalent to the demand-supply gap, citing recent customs duty exemptions on raw cotton imports as precedent.

"Developing an export market requires years of sustained effort and investment. While the Indian tyre industry has the resilience to explore new geographies, this is a time-consuming process. Immediate policy support will be critical to ensure that India does not lose ground in a highly competitive global market," Mammen added.

The association has also emphasised the need for enhanced research and development incentives, alongside advanced manufacturing support, to strengthen the sector's long-term global competitiveness.

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Goodyear has reversed an earlier plan to divest its farm tyre operations in India, opting instead to retain the business following the conclusion of a strategic review by its US parent company. The decision marks a shift in strategy for the US tyre group, which had been evaluating options for the division amid a broader restructuring programme.

Goodyear India disclosed the development to the Bombay Stock Exchange recetently, noting that the board had “took note of the communication received from The Goodyear Tire & Rubber Co., USA, i.e. the ultimate parent company that it has concluded the previously announced strategic review of its Farm Tire business in India and at this time has made the decision to retain ownership of the business.”

The review, initiated earlier this year, followed a sustained period of mixed performance in India’s agricultural equipment sector, where tyre demand is closely linked to tractor sales and rural income trends.

Retention of the business suggests the company sees continued strategic value in India’s agricultural market, one of the world’s largest for tractor production and a key geography for tyre manufacturers seeking stable demand cycles. The farm tyre segment, although subject to monsoon-driven fluctuations, offers long-term potential due to mechanisation trends and government support for rural development.

Goodyear India remains majority owned by the US group and manufactures a range of tyres for passenger vehicles and agricultural machinery. The company did not outline next steps for the farm division but said the communication from its parent should be taken on record.

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Linglong Tire has honoured its highest-performing dealers at a five-day gathering in London, as the Chinese manufacturer works to expand its international footprint and deepen ties with distributors across key growth markets.

Dealers from Australia, El Salvador, Egypt, Finland, Italy, Poland, Turkey and Uzbekistan were among those invited, having recorded the strongest sales of Linglong Group products in the first half of 2025. The company distributes several brands globally, including Linglong, Atlas (marketed in Australia), and Benchmark in Turkey.

Participants received certificates recognising their sales performance and attended presentations on company strategy and product developments. Some dealers also outlined their own approaches to marketing Linglong tyres in their respective regions, enabling comparisons of market conditions and promotional practices. Linglong said the exchanges offered insight into how its brands are positioned across different markets.

The event concluded with a group visit to the Premier League match between Chelsea and Arsenal. Linglong is the global tyre partner of Chelsea, displaying its branding at the club’s home fixtures at Stamford Bridge.

Shandong Linglong Tire, founded in 1975, operates seven research and development centres and seven manufacturing plants worldwide. The company manufactures tyres for passenger cars, commercial vehicles and engineering equipment, and supplies original equipment to more than 60 automotive manufacturers. Its products are sold through nearly 200,000 outlets in 173 countries.

Linglong continues to expand beyond its Chinese production base, with existing overseas facilities in Thailand and Serbia and plans to add further sites as part of its “7+5” global manufacturing strategy. The company has been an active sponsor of international sporting events and football clubs, including Real Madrid and Chicago Bulls.

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Apollo Tyres Ltd’s Sustainable Procurement Summit and Awards 2025 marked a pivotal moment for its global supply chain, uniting a diverse assembly of more than 800 partners from over 20 countries. The gathering’s core mission was to drive collective action in forging a future-focused value chain characterised by circular principles, climate responsibility and ethical rigour. A central feature of the agenda was a vibrant panel discussion where experts analysed the transformative pressures of impending regulations and evolving market expectations, emphasising the need for robust transparency and cooperative innovation to navigate the coming decade.

The event formally commenced with leadership unveiling the detailed Sustainability Roadmap 2030, a strategic blueprint that anchors long-term environmental and social governance into the company’s operational DNA. This presentation explicitly framed Apollo Tyres' vision for procurement and set forth clear, actionable expectations for its partners in this shared journey. Further elevating the summit was an awards ceremony created to celebrate supply chain excellence. Partners were honoured across critical categories including environmental stewardship, ethics, sustainable procurement and the protection of labour and human rights, acknowledging those who have delivered tangible impact and leadership.

The distinguished award recipients– Birla Carbon, Cabot, EQ Rubber, Hyosung, Milliken, OCCL, Performance Additives, Solvay, Synthos, Teck Bee Hang and Xingda – exemplify the high standards Apollo Tyres champions. Ultimately, the summit transcended a mere conference, positioning itself as a catalyst for deeper integration and mutual commitment, reinforcing that the path to achieving ambitious 2030 goals is fundamentally built through empowered and aligned partnerships across continents.

Sunam Sarkar, President and Chief Business Officer, Apollo Tyres Ltd, said, “The Sustainable Procurement Summit and Awards 2025 reflects our belief that creating a resilient and responsible value chain requires collaboration, transparency and a shared purpose. We are proud to recognise partners who are advancing sustainability in meaningful ways.”

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Hankook Tire has strengthened its commitment to sustainable community development in Indonesia with the recent completion of a vital water infrastructure project. The company finalised and celebrated the installation of a modern water pump and storage tank system in Naga cipta Village, Bekasi, on 5 December. This initiative directly addresses severe local water shortages exacerbated by El Niño climate patterns, which have historically caused extreme drought, particularly impacting over 50 households in the village reliant on rainwater for daily needs. The project supports United Nations Sustainable Development Goal 6, aiming to secure reliable access to clean and safe water for communities surrounding Hankook’s Indonesia Plant.

The new infrastructure is poised to substantially elevate living standards for residents, including many Hankook employees, by eliminating costs previously associated with buying water and improving overall sanitary conditions. This follows another successful water project in Pasirranji Village, which has supplied roughly 2.8 million litres of clean water to more than 1,100 residents since August. Hankook’s broader corporate social responsibility strategy in Indonesia is deeply aligned with multiple UN Sustainable Development Goals. Recent activities include enhancing public safety through LED streetlight installations for sustainable communities and supporting ecological balance by planting over 5,000 mangrove trees for forest restoration.

Beyond infrastructure, Hankook Tire fosters shared growth through ongoing local engagement. This includes annual tyre donations to public and private organisations to promote safer transport, alongside targeted support for education, healthcare services for vulnerable groups and direct charitable contributions. Through these multifaceted efforts, Hankook Tire continues to act as an active global corporate citizen, dedicated to fostering long-term wellbeing and resilience within Indonesian communities.

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