India’s tyre retreading market is estimated to be an INR 60 billion industry with retreading mostly happening on commercial vehicle tyres. The organised sector is slated to grow between 7-9 percent (CAGR) over the next three years. The retreading industry in India dates back decades, primarily focusing on commercial vehicle tyres. Over the decades, it has evolved with advancements in technology and regulatory frameworks. Government initiatives promoting sustainability and waste tyre management have further spurred growth, establishing retreading as a key component of the tyre market.

A recent media report stated that the organised tyre retreading market in India observed muted growth in the last five years. Speaking to Tyre Trends¸ ICRA Assistant Vice President and Sector Head – Corporate Ratings Nithya Debbadi said, “The domestic tyre retreading market is estimated at over INR 60 billion. Tyre retreading is largely done in commercial vehicles, which account for 80 percent of the market. Trucks account for 60-65 percent, while buses account for the rest of 15-20 percent. Off-highway tyres (OHT) including tractors account for 12-15 percent, while passenger vehicles account for a negligible share.”

More than 70 percent of the truck tyres are retreaded at least once. While retreading is prominent even in the LCV segment, proportion of tyres retreaded is lower than in M&HCV. Increasing radialisation, improving road infrastructure and retreading technology and focus on sustainability is expected to increase the share of retreading in the truck and bus radial (TBR) segment, going forward. New tyre designs for electric vehicles also presents opportunities for the retreading industry.

Demand growth

Alluding to how the Indian government’s focus on waste tyre disposal and increasing radialisation in commercial vehicles has benefitted the TBR retreading market in India, she noted, “Indian government introduced Extended Producer Responsibility (EPR) guidelines for waste tyres management, which came into effect in July 2022. The guidelines lay down rules relating to utilisation and management of waste tyres by producers (manufacturers and importers), recyclers and retreaders. Producers or importers need to fulfil EPR obligations by purchasing EPR certificate from registered recyclers. However, EPR obligation of tyre which has been retreaded shall be deferred by one year.” 

 “While the guidelines came into effect in FY2023, targets have been increasing progressively with the obligation increasing to 100 percent of tyre production in FY2025. Increasing focus on waste tyre management incentivises producers to focus on sustainability, which supports growth of retreading market. Compliance is achieved by purchasing EPR certificates from authorised recyclers or retreaders, thus developing tyre recycling infrastructure,” she added.

In trucks and bus segment, share of radialisation is estimated to have increased from 48 percent in FY2019 to over 55 percent in FY2024. Radial tyres have stronger structure, which supports multiple rounds of retreading. Moreover, radial tyres are more suited for roads in better conditions, leading to higher range for a given duration. This leads to frequent need for retreading.

She also noted that owing to Covid-19 and its post-effects, the retreading industry saw a flattish growth (estimated CAGR of 1-3 percent) in the three years ending FY2023. However, with the government’s thrust towards disposal of waste tyres, anti-overloading measures and increasing radialisation in commercial vehicle tyre segment, the retreading market has been a key beneficiary witnessing better demand traction in FY2024.

ICRA expects the organised tyre retreaders to grow by 7-9 percent (CAGR) over the next three years. Key factors supporting the growth include focus on sustainable tyres, improving tyre and retreading technology, better road infrastructure, rising radialisation in CV segment etc.

Alluding to what impact is the growing demand for sustainability and cost efficiency having on the quality standards and innovation within the retreading industry, she noted, “Retreading results in significant cost saving as the cost of retreading is around 20-50 percent the cost of a new tyre because of reuse of casing. Treads account for close to one-third of a tyre’s total cost. Performance of a retreaded tyre also depends on the health of the original casing.”

She added, “Developments in tyre technology has resulted in stronger casings and overall tyre structure that supports multiple rounds of retreading. Enhanced re-manufacturing techniques and higher quality rubber compounds are improving the quality of retreaded tyres and supporting demand. With quality casing and superior retreading technology, a tyre can be retreaded two to three times before being replaced while maintaining 80 percent quality of the new one.

Impending challenges

The tyre retreading market in India is at a pivotal juncture driven by a confluence of regulatory support, technological advancements and a growing awareness of sustainability. While challenges remain in the form of market fragmentation, the potential for growth is significant.

Despite these positive trends, the TBR retreading market faces significant challenges. The Indian market remains highly fragmented with over 50 percent of players operating in the unorganised sector.

As the industry adapts to changing dynamics, the focus on quality and sustainability will play a crucial role in shaping its future trajectory. The next decade may see retreading not just as a viable alternative to new tyres but as an essential component of a more sustainable automotive ecosystem in India.

In the state-of-the-art facilities of Huai’an, China, cutting-edge automated production lines craft precision steel cord that will soon strengthen tyres rolling across India’s expanding highway network. For Zenith Steel Group, a USD 28 billion steel and technology leader, these gleaming threads represent an exciting opportunity to support India’s remarkable automotive growth story.

The opportunity is extraordinary. India’s steel cord market, currently at 200,000 tonnes annually, is set to nearly double within a decade as the world’s largest democracy accelerates its infrastructure development and vehicle ownership continues its impressive rise. For Zenith, recognised among China’s top 500 enterprises, partnering with India’s growth represents a natural strategic alignment.

“India is a ‘must win’ place for us,” enthuses Sheng Rongsheng, CEO of Zenith’s International Business, highlighting the company’s commitment to supporting what executives view as the world’s most promising automotive market.

The timing reflects India’s automotive evolution success story. The country’s tyre industry is experiencing a remarkable transformation from traditional technologies to advanced radial systems, creating unprecedented opportunities for innovative steel cord solutions. This transition has generated significant demand while showcasing India’s unique engineering capabilities in adapting global technologies to local requirements.

Zenith’s expansion into India exemplifies positive global collaboration trends. As companies worldwide embrace supply chain diversification, the Chinese innovator’s investment in India demonstrates how international partnerships can deliver mutual benefits through technology transfer and competitive alternatives.

The initiative promises substantial advantages for Indian tyre manufacturers, including access to advanced manufacturing technologies, competitive pricing options and enhanced supply chain resilience. For Zenith, success in India represents validation of its evolution from regional producer to global technology partner.

With India’s automotive sector poised for continued expansion, this collaboration highlights how international expertise can support domestic growth while fostering innovation across the global tyre industry.

In the sprawling industrial complex of Huai’an, China, massive automated production lines hum with precision, producing fine steel cord that glistens like gold yet is strong enough to reinforce truck tyres that traverse India’s expanding highway network. This is the manufacturing heart of Zenith Steel Group’s ambitious global expansion, and India is squarely in its crosshairs.

The USD 28 billion Chinese steel conglomerate, which ranked 175th among China’s top 500 enterprises in 2022, is making calculated moves to capture a significant share of the global (and also India’s) growing tyre reinforcement materials market. With plans to reach 1.6 million tonnes of annual production capacity for high-strength steel cord, bead wire and hose wire, Zenith is positioning itself as a formidable competitor in a market currently dominated by a single established player.

“Our ambition is to become the leader in the worldwide steel cord industry, and needless to say, India plays a critical role in our global strategy given the fact that it has the largest population in the world, and therefore, we believe its market potential on top of today’s sizeable demand of about 200 kt a year is bigger than anybody else. So India is a ‘must win’ place for us,” says Sheng Rongsheng, CEO of Zenith’s International Business.

This strategic push comes at a time when India’s tyre industry is rapidly evolving, driven by infrastructure improvements, vehicle market growth and increasing tyre radialisation rates. The timing appears opportune but breaking into India’s notoriously challenging market will test Zenith’s technical capabilities, localisation strategies and cost competitiveness in what industry experts describe as one of the world’s most demanding tyre markets.

EVOLUTION OF INDIA’S STEEL CORD MARKET

India’s steel cord market has undergone dramatic transformation in recent decades, evolving from a predominantly bias tyre market to increasingly adopting radial technology, which requires steel cord reinforcement.

“The Indian market is one of the few markets where bias tyres have been successful and still are in certain segments. This is due to road and usage conditions like loading and tyre inflation pressures,” explains Srikanth Chakravarthy, Designated Partner and Managing Director of Zenith India, who is representing Zenith in India after spending over 25 years in the steel cord business. “However, over the last three decades, road infrastructure has evolved quite rapidly not only in terms of new roads but quality of highways as well. This helped radialisation and therefore the demand of steel cord in India.”

This transition has created significant market opportunities but also unique challenges. Indian tyre manufacturers have developed distinctively local requirements that differ from global standards, driven by the country’s specific road conditions and vehicle usage patterns.

“Steel tyre cord itself has seen an evolution with initial designs being an outcome of international designs and choices and foreign collaborations. But Indian tyre makers were quick to study local requirements and design in-house leading to rapid product portfolio changes that saw the needle moving, for instance on tensile, from normal tensile to high tensile and now super and ultra tensile,” Chakravarthy notes. “The evolution has been also in terms of the design of cords that are more lightweight, stronger and now there is a big focus on sustainable solutions embracing circularity and reduced Co₂ emissions.”

According to the company, Zenith is already engaging with multiple Indian tyre manufacturers including Apollo Tyres, MRF, JK Tyre, CEAT, BKT, ATG, MPTL (Ascenso) and Ralson, and also with international players like Yokohama, Goodyear, Bridgestone and Continental. Several companies including JK and BKT have confirmed homologation approvals, marking critical early success for Zenith’s market entry strategy.  

Industry analysts estimate that India’s steel cord market is currently around 200,000 tonnes annually with significant growth, almost double, expected in the coming decade as vehicle ownership continues to expand and tyre radialisation rates increase, particularly in the commercial vehicle segment.

THREE-PRONGED STRATEGY

Zenith’s approach to the Indian market follows a carefully staged strategy that balances immediate export opportunities with long-term localisation goals. The company’s leadership team is clear about the methodical approach they’re taking.

“The approach can be divided into three parts,” explains Chakravarthy. “In the short term, the focus is on getting all approvals done quickly from the plant base in Huai’an. In the medium term, as commercial sales initiate, it is to offer outstanding service with warehousing, consignment stock, local technical service, co-development and efficient logistics. In the long term, the plan is to explore partnerships that enable a local footprint or a non-China-based footprint that can continue to offer the full value proposition with the added advantage of local presence.”

This methodical approach reflects Zenith’s understanding of Indian market requirements, where local presence is often a key differentiator. The company is already responding to specific customer requests for enhanced service offerings as Kelfen Zhu, International Sales Director, acknowledges, “Local warehousing has been mentioned by Indian customers, Zenith is seriously working on the solution.”

While the company currently manufactures in China with no production facilities in India, its leadership is clearly signalling future localisation plans that could include partnerships or direct investment. “To become No.1 in this market over time, there are two steps to go: first to become No.1 among all the import players, then when condition allows, to build up local production capacity and eventually become No.1 among all the steel cord suppliers to this market,” shares Rongsheng, outlining the company’s ambitious goals.

The timeline for such moves remains undefined but appears to be part of a long-term vision rather than an immediate priority. Chakravarthy suggests, “As mentioned before, this is part of the long-term strategy and we are already talking to several local players. In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market.”

QUALITY MANAGEMENT: THE CORNERSTONE OF CUSTOMER ACQUISITION

For Zenith, quality management represents the foundation of its customer acquisition strategy in India. The company received IATF 16949 certification in February 2024 alongside ISO 9001, ISO 14001 and ISO 45001 certifications – credentials that are essential for supplying to global and Indian tyre manufacturers.

“Zenith is committed to building a robust quality management system that is customer-centric, process-oriented and integrates advanced digital solutions to realise full-process traceability and intelligent decision-making based on AI model,” states Bian Keping, Quality Manager at Zenith Steel.

This quality management system adopts both reactive and pro-active approaches to customer feedback. “For reactive way, we respond quickly to customer complaint if and when some failure happened at customer side. The systematic problem-solving mechanism, i.e. 8D methodology, would be triggered to resolve the issues. For pro-active way, we collect customers’ voice via plant visit, technical forum, questionnaire etc. we also seek feedback with an open mind when customers visit us for audits and visit. All VOC will be seriously summarised, analysed and archived to guide both product development and process improvement process,” says Keping. The company claims particular innovation in addressing common defect issues that plague tyre manufacturers. Keping adds, “Till now, Zenith doesn’t have local plant in India. For plants in China, we have introduced lots of error-proof solutions to cope with typical defects at customers sides, e.g. short-length, broken welding, cord formation defects and etc., which can definitely enhance customer satisfaction in India.”

One specific innovation highlighted by the quality team is particularly relevant to Indian manufacturing conditions. “Especially for tip-rise issue, Zenith is the first steel cord manufacturer world-wide to realise non-manual testing of residual torsion of TC spool, which can improve the accuracy and reliability of torsion testing results and significantly reduce the risk of tip-rise,” says Keping. This focus on tip-rise issues appears strategically targeted as Zhu confirms. “Tip-rise is a concern for customers right from trial stage. Professional local technical presence can clear the concern with immediate post-sales follow up and communication,” he says.  

R&D CAPABILITIES: ADDRESSING INDIA’S UNIQUE REQUIREMENTS

Zenith’s research and development strategy for India focuses on developing products that address specific challenges in the Indian market, particularly the need for tyres that can withstand heavy loads, variable road conditions and cost pressures.

Dr Wang Aiping , Head of R&D at Zenith, outlines the company’s approach: “Our approach is to develop higher strength steel cord such as ST/UT and new steel cord with better fatigue performance. We will also develop customised steel cord with certain requirements like better rubber penetration and provide advanced test service such as aged adhesion, fatigue, rubber penetration etc.”

The company appears to be investing significantly in its research and development capabilities for the Indian market with Dr Aiping indicating that at least three percent of sales income will be allocated to R&D expenditures focused on Indian operations, depending on the progress.

This research and development strategy emphasises both performance and cost considerations, reflecting an understanding of the unique price-performance demands of the Indian market. “We will focus more on both steel cord strength and fatigue performance with tyre overload condition. We will also acquire experienced senior steel cord application expertise,” Dr Aiping notes when describing how Zenith’s research and development approach differs from competitors in addressing Indian market needs.

The integration of sustainability into product development also appears to be a key differentiator for Zenith’s research and development strategy. The company is developing a carbon emission management platform tailored for Indian industries to help monitor, report and reduce emissions, supporting compliance with national ESG and carbon credit regulations. “Our research and development efforts are focused on higher strength steel cord development including ultra-tensile (UT) and mega-tensile (MT) variants, which reduce material usage and enhance fuel efficiency for automotive applications,” notes Dr Aiping.

Zenith is also introducing steel cords manufactured from high scrap ratio wire rods (≥60%), promoting circular manufacturing and reducing the carbon footprint in line with India’s green steel and recycling policies.

It is evident that tyre manufacturers globally are increasingly focused on sustainability metrics, driven by both regulatory requirements and market demand for reduced environmental impact. Zenith’s emphasis on carbon footprint measurement and recycled content appears designed to address this emerging requirement in the Indian market.

THE INTELLIGENT FACTORY

Zenith’s manufacturing capabilities represent a central pillar of its value proposition to Indian customers. The company has invested heavily in creating what it describes as an ’Intelligent Factory’ in Huai’an, featuring advanced robotics, automated material handling systems and advanced process controls.

Chakravarthy, who has extensive experience in the steel cord industry, makes a bold claim about these facilities stating, “I have spent nearly 2.5 decades in the steel cord business and I have not seen a plant as modern, efficient and sophisticated in the steel cord business like the Zenith plant in Huai’an.”

This manufacturing sophistication appears designed to address two critical requirements for the Indian market, namely consistent quality and cost competitiveness. The automated systems promise reduced variability, while scale and efficiency aim to deliver competitive pricing despite the logistical challenges of serving India from China.

A distinctive feature of Zenith’s manufacturing approach is its emphasis on traceability and carbon emissions management. The company has developed what it calls an ‘Integrated Carbon Emission Management System’ that provides product carbon footprint data at the SKU level with third-party verification. This system allows Zenith to provide tyre manufacturers with detailed emissions data for their supply chain reporting – an increasingly important consideration for global tyre companies and their automotive customers.

“Zenith invested much more in automation and digitalisation than any other competitors. With these technologies in place, we can definitely create extra value for our customers. One example here is the product traceability, and we are the only one in the industry who is able to realise full process information traceability, from the wire rod to the finished goods,” notes Rongsheng when discussing important technology transfers to Indian operations.

Industry experts observe that manufacturing scale is increasingly important in the capital-intensive steel cord industry, where economies of scale drive cost competitiveness. Zenith’s ambitious capacity expansion plans, which will see it reach 1.6 million tonnes of annual production capacity across multiple plants, position the company as the largest global producers of steel cord and bead wire.

CHALLENGE OF COST COMPETITIVENESS

Despite its technological and quality advantages, Zenith faces significant challenges in achieving the cost competitiveness demanded by Indian tyre manufacturers, who operate in one of the world’s most price-sensitive markets.

Chakravarthy is forthright about this challenge. He says, “A challenge of local steel cord being cost competitive with international options is a matter of concern to the tyre industry. Also, the world of technology is rapidly evolving, and we must acknowledge that in this industry the Chinese players have made significant strides and therefore offer an equally superior infrastructure and sustainable solutions, but scale of economy will be a challenge for time to come.”

Indian tyre customers have particularly demanding requirements as Chakravarthy explains. “Indian tyre makers have a unique challenge to make the best tyre that is abuse proof, high performing, absolutely reliable, sustainable, safe, giving the best fuel efficiency and longest tyre life at the lowest cost. It might sound ridiculous, but this is reality, and Indian tyre makers have constantly risen to this challenge and developed the radial tyre market this way,” he says.

Meeting these challenging requirements while maintaining competitive pricing is the central challenge for Zenith’s India strategy. Chakravarthy emphasises that Indian customers expect steel cord partners to have a focus on innovation, consistent quality (low variations), intervention-free processability, traceability of carbon emissions, recycled content in steel cord without compromising quality and above all cost competitiveness.

BUILDING LOCAL PRESENCE

Recognising the importance of local presence, Zenith is planning to establish a technical and commercial team in India in the second half of 2025. “A professional local team with senior experts from industry will be built in H2 2025,” according to Zhu.

In the meantime, the company is leveraging its regional presence with Zhu noting that Zenith’s customer service representatives in SEA countries can back up Indian market whenever required.

This gradual approach to building local presence appears designed to match resources with market development progress. Chakravarthy acknowledges that it is only three months that he is associated with Zenith and the focus is on introducing the company, having tyre customers visit and audit the facility as they conduct approvals. “Our talent acquisition and development will be based on the various stages of growth as mentioned earlier and we will not settle for anything less than the best,” he says.

The company’s commitment to local presence seems rooted in an understanding of the Indian market’s preference for local technical support and service responsiveness. “Think global and act local is the way to go,” says Rongsheng. “We understand that India is a very demanding market; we will for sure deliver our products with the best quality, in cooperation with Sri and his team, who is by far the best local partner we could have in this region. As time goes by, we will build up local warehouses in order to foster delivery flexibilities to our customers,” he adds.

A STRATEGIC DIFFERENTIATOR

A distinctive feature of Zenith’s market approach is its design integration on sustainability and carbon emissions. The company transports its wire rod by water ways, reducing its C02 emissions per tonne per km significantly vs road transport. The use of energy efficient motors, solar power on site, optimal plant   layout maximising efficiency with Co2 capture at every stage is what sets the Huai’an plant apart. This, coupled with the deployment of sophisticated systems for tracking and reporting carbon emissions throughout the production process, offers tyre manufacturers detailed data for their sustainability reporting.

The company’s investments in sustainability technologies reflect growing market demand for environmentally responsible manufacturing practices. One of the biggest challenges for carbon emission management is to understand carbon emission in Scope 3. The carbon emission management system of Zenith integrates all product carbon footprint data throughout the supply chain, from raw material sourcing to product distribution.

GLOBAL COMPETITION AND MARKET POSITIONING

Zenith’s push into India comes amid broader global trends of supply chain diversification and regionalisation in the steel and automotive supply chains. Global trade tensions, shipping disruptions and sustainability considerations are all driving tyre manufacturers to seek more resilient and localised supply networks.

This context creates both opportunity and urgency for Zenith’s India strategy. On one hand, tyre manufacturers are actively seeking supply alternatives to reduce concentration risk. On the other hand, competitors are also pursuing similar strategies, creating a race to establish market position.

The company’s aggressive capacity expansion in China – investing in projects totalling 1.6 million tonnes of annual production, a full-fledged R&D facility, integrated steel manufacturing, access to harbour, talented work force – positions it to serve not only India but global markets too. This scale could provide advantages in new technology development, raw material sourcing and manufacturing efficiency that benefit the Indian business.

However, relying exclusively on exports from China also creates vulnerability, particularly if trade tensions or shipping constraints resurface. This reality likely explains Zenith’s interest in eventually establishing non-China production capacities, potentially including India itself.

Industry experts note that India’s government has been actively encouraging greater localisation of manufacturing across various industries including automotive components. This policy direction could create both incentives and pressures for Zenith to accelerate its plans for local production capabilities in India.

CUSTOMER ENGAGEMENT

Zenith’s approach to the Indian market emphasises close technical collaboration with tyre manufacturers, recognising the unique requirements of the Indian market and the value of co-development in addressing these needs.

“We organise technical forum with customers’ research and development team to listen to their concerns and feedback. For some critical issues, management team will assign corresponding resource to cope with,” the company’s Quality Manager notes when describing collaboration with research and development to improve product quality.

This collaborative approach appears designed to address the specific technical challenges faced by Indian tyre manufacturers, who must design products for uniquely challenging operating conditions. “Indian customers value reliability, cost-effectiveness and localised post-sales support. Zenith prioritises trust-building through transparent communication, joint problem-solving and tailor-made new product development,” notes Zhu.

“The company’s research and development team is also focused on supporting this collaborative approach with plans to have regular technical meeting and build-up co-operation project with certain customer,” according to Dr Aiping.

GROWTH PROJECTIONS

Zenith’s current production capacity and expansion plans are substantial, reflecting the company’s global ambitions. According to the company, Zenith expects to reach around 500,000 tonnes of sales in 2025 and over 800,000 tonnes in 2026. This rapid scaling of production capacity underscores the company’s global ambitions.

The company’s manufacturing facilities are organised into multiple plants, each focusing on specific product lines:

• Plant 1: 240,000 tonnes/year of steel cord (full operation)
• Plant 2: 300,000 tonnes/year of bead wire (3/6 lines installed)
• Plant 7: 280,000 tonnes/year of steel cord (800 tonnes/day)
• Plant 6: 280,000 tonnes/year of steel cord (construction started in April 2024)
• Plants 3 and 5: 500,000 tonnes/year of steel cord (to be launched in 2025/2026)

This capacity expansion is backed by substantial investment with the company noting that it will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow. ”Zenith’s state-of-the-art production facilities and its very experienced team guarantee high product quality as well as stability. Because of its large production  capacity, Zenith has a strong economy of scale and therefore is able to offer very competitive prices to Indian customers. Zenith will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow,” adds Rongsheng.

AMBITIONS AND REALISM

Zenith’s ambitions for the Indian market are clearly substantial, but so are the challenges. The company faces competition not only from the established local player but also from other global steel cord manufacturers eyeing India’s growth potential.

Chakravarthy sees the opportunity for Zenith to become a very strong alternative that allows India to offer higher value to the automotive OEMs and replacement market. He suggests that what Zenith could offer the Indian tyre industry is an extremely cost-competitive source that is able to provide the most modern technology, efficiency, highest levels of quality, deep innovation and enough volumes to support the growth of Indian market requirements in the years to come.

However, realising this vision requires executing across multiple dimensions simultaneously including building customer relationships, establishing local presence, ensuring cost competitiveness and eventually pursuing local manufacturing partnerships.

The company’s leadership appears clear-eyed about both the opportunities and challenges. “India can only become more important for Zenith in the future. It’s a growing market and the demand is going up every year. You cannot find this promising trend in those mature or developed markets,” says Rongsheng.

For the Indian market specifically, success will ultimately be measured by commercial performance and customer acceptance. While several Indian tyre manufacturers are already engaging with Zenith for approvals and trials, converting these initial engagements into substantial, regular supply relationships represents the true test of the company’s strategy.

As Chakravarthy puts it, “Being a steel cord player, where approvals themselves take a couple of years or more, requires a long-term vision and commitment. The level of commitment can simply be measured by how much investment a company is making for catering to the future needs of the industry. Zenith’s investments are not only towards securing volume needs of the Indian tyre industry but also fulfilling evolving technological, quality, sustainable and economic viability needs. “

A NEW FORCE

As Zenith advances its India strategy, the company appears poised to become a significant force in the country’s steel cord market. Its combination of manufacturing scale, technical capabilities and strategic focus on Indian requirements positions it well to challenge existing suppliers and support the continued growth of India’s tyre industry.

 “It is not an easy road, and the only way to succeed is to collaborate with the best in the industry who can address all these aspects, not just some of these aspects,” Chakravarthy observes, capturing both the opportunity and challenge that lies ahead for Zenith in India.

For Indian customers, Zenith’s entry marks the first ever steel cord supplier who is backward integrated with steelmaking offering complete control on quality and scale and capacity and thereby supports a unique value proposition built on the principles of quality, sustainability, innovation, service and cost competitiveness. For Zenith, success in India represents not just a commercial opportunity but a strategic imperative as the company seeks to transform from a China-focused producer to a truly global steel cord supplier.

As the company enters its next phase of market development in India, all eyes will be on its ability to deliver on the twin promises of quality and cost competitiveness that define success in this demanding market. With its ambitious capacity expansion plans, investments in advanced manufacturing technologies and growing engagement with Indian customers, Zenith appears determined to establish itself as a long-term player in India’s evolving steel cord landscape.

“India presents a growth market in the long term with a strong case for doubling its steel cord demand within the decade. Unlike some global manufacturing platforms that are largely export dependent, India has a healthy domestic market with a continued and healthy growth projection both for domestic and exports,” Chakravarthy noted, summarising the strategic rationale behind Zenith’s India push.

In the global context of supply chain diversification and growing emphasis on sustainability, Zenith’s investment in India reflects broader trends reshaping the steel and automotive supply chains. The company’s success or failure in India will serve as a case study in how Chinese manufacturers can navigate the complex process of expanding beyond their home market into challenging but potentially rewarding growth markets.

As one industry analyst put it, “The entry of players like Zenith brings much-needed competition to India’s steel cord market. If they can deliver on their promises of quality, cost and eventually local manufacturing, Indian tyre makers stand to benefit significantly from an expanded and more competitive supplier base.”

The months and years ahead will reveal whether this confidence is justified and whether Zenith can translate its ambitious plans into market reality in one of the world’s most challenging and promising tyre markets.

THE PATH FORWARD: STRATEGIC IMPERATIVES AND CHALLENGES

As Zenith advances its India strategy, several key imperatives and challenges emerge from the company’s approach:

1. Balancing global scale with local adaptation: Zenith must leverage its global scale while adapting to the specific requirements of the Indian market. “Think global and act local’ is the way to go,” as Rongsheng puts it.

2. Establishing local presence: Building a local technical and commercial team will be crucial for addressing Indian customers’ expectations for responsive service and support. “Professional local team with senior experts from industry will be built in 2H’2025,” according to Zhu.

3. Ensuring cost competitiveness: Despite technological advantages, Zenith must deliver competitive pricing to succeed in India’s price-sensitive market. “The Indian consumers are a price and value sensitive market, and therefore it is not sufficient to just have a local footprint without addressing the key questions of cost competitiveness, sustainability and technology sufficiently,” Chakravarthy notes.

4. Developing market-specific products: India’s unique road conditions and vehicle usage patterns require specialised steel cord solutions. “To consider both steel cord strength and fatigue performance with tyre overload condition,” Dr Aiping emphasises.

5. Building long-term partnerships: Success in India will require strong relationships with tyre manufacturers and potentially local manufacturing partners. “In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market,” Chakravarthy suggests.

Radar Tires has appointed industry veteran Paul Stahoviak as its new Territory Sales Manager for North America. In this strategic role, Stahoviak will spearhead the expansion of Radar's Midwest operations while developing the company's premium Radar Elite Dealer (RED) network. The automotive expert brings four decades of experience working with leading manufacturers and retailers to this position.

Radar Tires has achieved remarkable growth in recent years through continuous product innovation and progressive business strategies. Since entering the US market in 2006, the company has also built a reputation for corporate social responsibility, contributing millions to meaningful initiatives such as breast cancer awareness. By combining high-performance tyres with a commitment to purpose-driven business practices, Radar continues to strengthen its position in the competitive tyre industry.

Rob Montasser, Vice President of Radar Tire, North America, said, “Paul’s deep knowledge of the industry, combined with his relentless energy and positive attitude, makes him a great addition to the Radar team. His longstanding relationships and reputation for excellence will help us continue building strong partnerships and expanding our footprint across the Midwest.”

Stahoviak said, “I’m excited to join Radar Tires and help drive the growth of this great brand. I’m passionate about building lasting relationships with our partners and helping our brand succeed in the marketplace.”

As vehicle emissions regulations evolve, the lack of global uniformity is becoming a growing concern for OEMs and tyre manufacturers. With disparate standards across regions, companies are forced to navigate a complex regulatory maze, straining research and development and production resources. The shift towards electric mobility coupled with heightened focus on non-tailpipe emissions, such as tyre and brake abrasion, further amplifies the need for harmonised frameworks. Industry leaders including Audi’s Sebastian Gramstat argue that collaboration across borders and sectors is essential not just for compliance but for meaningful progress in sustainability and innovation.

Tyre regulations are rules and standards established to ensure that tyres used on vehicles meet safety, environmental and performance criteria. The impetus on new and updated regulations is also growing across regions to reduce pollution brought about by tyre abrasion, rolling noise etc.

The ECE R30, ECE R117, EU Tyre Labelling Regulation (2020/740), which is implemented within the European countries, or JIS Standards of Japan, CCC Certification of China, AIS 142 and BIS Certification of India and FMVSS, DOT Code and UTQG of the United States are different region-specific regulations aiming for a same outcome.

But the vastness of these regulations poses as a challenge for automobile OEMs and tyre makers alike as a lot of energy and resources have to be diverted within production and research and development lines to meet these standards.

Furthermore, the advancement of electric mobility and changes in vehicle dynamics are also slated to impose new regulations worldwide. Hence, the need for a uniform regulation has become a precondition.

Speaking to Tyre Trends on the need for uniform regulations, Dr Sebastian Gramstat, Senior Expert Development Brake System, Audi AG, averred, “Our company delivers products globally and having a unified standard is far more efficient than navigating a patchwork of regional requirements and regulations. Harmonisation brings clear operational and strategic advantages. That’s why we actively support and participate in standardisation and harmonisation working groups.”

“The European Union is involved through bodies such as the Joint Research Centre (JRC), but we also recognise the unique demands of other markets, particularly the US, where customer expectations can diverge significantly. These are often beyond the immediate scope of EU regulators. Our role is to help connect these dots by facilitating dialogue, sharing insights and contributing to building a global standard that benefits the entire ecosystem. We believe this collaborative approach is not only useful but essential to moving the industry forward,” he added.

The need for uniformity is exacerbated as OEMs and tyre makers continuously amp up research and development efforts to curb noise and air pollution from tyres. “Noise pollution, particulate matter or overall tyre wear remains a challenge. And the first step to tackle it is collaboration to develop a standardised method for accurately measuring tyre abrasion and wear. We are also working on such collaborations. Without reliable quantification, you can’t evaluate whether any mitigation measure is actually effective,” said Dr Gramstat.

He added, “This method needs to be robust, applicable across a wide range of real-world scenarios and globally accepted. That’s why we’re collaborating not only with industry partners and academia but also with regulatory authorities. This effort is taking place under the auspices of the United Nations and involves close coordination with national bodies, ministries and the European Commission. The goal is to ensure that the methodology we develop isn’t just technically sound but also internationally harmonised with Euro 7 regulations and integrated into UN regulations so it can be implemented consistently across Europe, North America, Asia and beyond.”

THE EURO 7

Tyres are a crucial component of overall vehicle design to the extent that many OEMs have dedicated in-house departments focused solely on tyre development, including Audi AG. While tyres aren’t developed in isolation, the process involves close collaboration with manufacturers to meet specific, often bespoke, requirements. These custom specifications ensure the tyre aligns with the car’s performance targets and regulatory demands including type approval.

When selecting a tyre, OEMs weigh multiple parameters; safety, performance and comfort are chief among them. But increasingly, attention is also given to sustainability and economy. Factors like tyre abrasion, longevity and fuel efficiency are becoming just as critical, particularly as regulatory frameworks begin to formalise such requirements.

Ultimately, the process involves balancing trade-offs. As Dr Gramstat put it, no tyre can deliver 100 percent on every metric. The goal is to find the best possible compromise – one that supports a premium product and meets both regulatory standards and consumer expectations.

Euro 7 is the upcoming EU vehicle emissions regulation set to take effect from 2025 for cars and vans and 2027 for trucks and buses. It introduces stricter limits on nitrogen oxides, carbon monoxide and particulate emissions, covering both combustion and electric vehicles.

It also regulates brake and tyre emissions and requires compliance under real driving conditions. It aims to cut air pollution, support the European Green Deal and standardise emission rules across vehicle types.

Alluding to whether the industry is ready to adopt the regulation, Dr Gramstat noted, “The industry is well-positioned for adoption. The European Tyre and Rim Technical Organisation (ETRTO) plays a central role in coordinating the efforts of tyre manufacturers across the continent, including legacy European brands and Asian manufacturers, with research and development and production facilities in Europe. Beyond Europe, we’re seeing strong international engagement. U.S. Tire Manufacturers Association (USTMA) is actively involved, and on the global standards side, ISO is working in parallel to develop the necessary technical frameworks. Stakeholders from China are also contributing significantly. This is no longer just a regional conversation but a truly global initiative. Experts from continents are collaborating to align regulatory, technical and industrial priorities, ensuring the tyre industry is prepared to meet the evolving demands of Euro 7 and beyond.”

Further outlining the impact of the regulation, he said, “Tyre manufacturers have largely operated under internal benchmarks for metrics like mileage and abrasion till date. Euro 7 represents a shift towards formal regulation, creating a harmonised framework that applies to the entire industry. This will undoubtedly influence existing design priorities. There’s a complex interplay between various tyre performance criteria such as wet grip, rolling resistance, noise and abrasion. Regulatory limits on one can impact the others, so the challenge will be to minimise trade-offs while maintaining overall performance. At this stage, it’s difficult to offer a one-size-fits-all answer. The impact will vary depending on vehicle type.”

REPLACEMENTS

Premium automobile OEMs like Audi have been using tyres from premium European tyre makers for decades. But as the status of Asian manufacturers changes, there might be room for such companies within the supply chain of premium car makers.

“At the end of the day, it’s not about the brand label but meeting the technical and performance specifications we define. Whether a supplier operates in the premium or high-volume segment, what matters is its ability to fulfil our requirements. If a manufacturer can meet those benchmarks and is willing to collaborate and co-develop with us, then they’re absolutely welcome. Competition in the supplier landscape is a positive force. It drives innovation, efficiency and ultimately better outcomes for the end consumer. We believe valuable ideas can come from any corner of the market and we’re open to partners who share our commitment to quality, performance and progress,” said Dr Gramstat.

He also acknowledged that there is a growing trend within the company to include tyres made from renewable and recycled materials. “The move towards sustainable materials is more than a marketing exercise. It’s becoming embedded in product development strategies across the industry. We’re already seeing recycled content being integrated into certain product lines, and the ambition from suppliers to scale this up is very real. What’s encouraging is that this isn’t limited to one-off pilot products. There’s genuine momentum towards making sustainability a core part of tyre manufacturing. For us, this aligns with our broader sustainability goals, and we see it as a critical area of innovation moving forward,” said Dr Gramstat.

However, the executive emphasised the importance of maintaining a balance too. According to him, sustainability is just one of several key factors in vehicle design while others include safety, comfort, performance and cost. He stressed that no single aspect, including sustainability, could come at the expense of another.

To meet these multi-dimensional goals, additional research and development efforts are required to create a product that meets safety and performance standards while also addressing environmental concerns. Economy remains a consideration as well. Internal research conducted under a European-funded project suggested that customers are, in fact, willing to pay a premium for more sustainable products but only up to a point. Price sensitivity remains a limiting factor.

Turning towards next-generation tyre concepts such as airless tyres, Dr Gramstat noted that innovative ideas like this were once viewed as distant possibilities but are now gaining traction. He cited the LEON-TI project from four years ago, in which airless tyre prototypes were first explored. Since then, similar concepts have been tested by various companies, including in pilot programmes for commercial delivery fleets in Asia.

Although these innovations show promise, particularly for reducing noise emissions and improving durability, they are still in advanced development stages.

THE FUTURE IS CHANGING

As the automotive industry moves towards electrification, the conversation around ‘zero-emission’ vehicles is evolving. Dr Gramstat acknowledged that while electric vehicles eliminate tailpipe emissions, other sources of pollution such as brake and tyre abrasion remain unaddressed in regulatory terms.

Currently, there are no standardised methods for measuring particulate emissions from these sources, but the industry is actively working on it. According to the executive, regulatory bodies and stakeholders are collaborating to develop measurement frameworks. Once these standards are in place, automakers will be able to quantify non-tailpipe emissions and provide a more accurate assessment of a vehicle’s overall environmental footprint.

The executive stressed that collaboration across the value chain is essential, especially between vehicle manufacturers and tyre companies. Such partnerships already exist within serial and advanced development efforts, including participation in the United Nations’ GRBP task force, which brings together manufacturers, tyre associations and regulators to advance tyre abrasion standards.

Weight reduction remains another key challenge. Automakers continue to look for ways to decrease vehicle mass but face constraints. Safety regulations now require more sensors and electronic control units (ECUs), which cumulatively increase vehicle weight. Although each component adds little individually, the growing number of sensors and accompanying wiring has a significant cumulative impact.

As for tyre development, the question of smart tyre was also addressed. While such technology offers valuable insights during research and development phases, Dr Gramstat expressed scepticism about its near-term viability for mass-market vehicles.

In a major step toward sustainable waste management, RPM Automotive Group has partnered with Fornnax to enhance its tyre recycling capabilities in Australia.

As part of the initiative, RPM has integrated Fornnax’s high-capacity SR-200 HD primary shredder into its operations, significantly improving recycling efficiency and material quality.

The collaboration supports RPM’s broader environmental goals and positions the company to process over 180 tonnes of used tyres weekly, with plans to scale beyond 300 tonnes. The move is expected to help RPM capture up to 5 percent of Australia’s national market share in tyre recycling.

Jignesh Kundaria, Director and CEO, Fornnax, said, "At Fornnax, we understand the urgency of addressing end-of-life tyre waste, not just in Australia but globally. The SR-200 HD Primary Shredder is designed for exceptional efficiency, enabling RPM to process vast quantities of discarded tyres while maintaining optimal operational performance. This collaboration showcases our dedication to providing our clients with the robust, high-performance solutions they need to excel in the circular economy."

RPM’s 3,500 sqmt facility not only boosts recycling output but also transforms waste tyres into rubber-based materials for road projects and industrial fuel. Leveraging its distribution network, the company aims to recycle up to 54,000 tonnes of tyres over five years.

The initiative aligns with Australia’s 2021 ban on tyre waste exports and underscores the urgent need for local recycling solutions.