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.

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Indian off-highway tyre maker maintains top supplier status in global recognition programme

Balkrishna Industries Ltd (BKT), one of the world’s leading off-highway tyre manufacturers, has secured the “Excellence Level” certification for the fourth consecutive year under Caterpillar’s Supplier Excellence Recognition (SER) programme, the Indian company said on Wednesday.

The recognition from the American heavy machinery giant underscores BKT’s sustained performance across quality metrics and delivery standards, reinforcing its position as a key supplier in the construction and mining equipment sector.

BKT’s partnership with Caterpillar dates back to 2015, when it began supplying tyres for the Indian market. The relationship has since expanded, with BKT now providing off-highway tyres for Caterpillar equipment ranging from 40 to 190 tonnes across various markets.

The Mumbai-based company’s certification journey began in 2017 with a Silver Level rating, followed by progressive improvements to Gold and Platinum levels before achieving the Excellence distinction in 2022.

Caterpillar’s SER programme evaluates suppliers across multiple criteria, including product quality, on-time delivery performance, technical support capabilities and operational feedback from field deployments.

“We are truly honoured to receive the Caterpillar Excellence Supplier Award. This recognition reflects our unwavering commitment to quality, innovation, and customer satisfaction,” said Ludovic Revel, President Global OEM at BKT. “It is a testament to the dedication of our entire team and the long-standing business relationship with Caterpillar.”

The Excellence Level represents the highest tier in Caterpillar’s supplier assessment framework, reserved for partners demonstrating consistent performance and reliability across operational metrics.

BKT has distinguished itself through comprehensive customer support, including proactive communication channels and technical on-site assistance, according to the company statement.

“We are proud to share our global ambitions: to deliver excellence, sustainability, and performance at every corner of the world. We look forward to carrying on our support for Caterpillar’s success with the same passion and reliability that distinguish BKT Tyres,” Revel added.

The recognition comes as global demand for construction and mining equipment remains robust, driven by infrastructure development and commodity extraction activities worldwide.

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Michelin Connected Fleet North America has named Willem Moore as its new Chief Executive Officer. Having been with the parent company since 2019, Moore brings considerable leadership expertise from the technology and mobility sectors. In his new role, he will steer the company's mission to provide advanced fleet management solutions that enhance customer efficiency, safety and sustainability.

“Willem brings an extensive leadership experience in the technology and mobility arenas and will guide our mission to deliver innovative fleet management solutions that drive efficiency, safety and sustainability for our customers. His leadership will help us accelerate innovation while continuing to put our people, customers and partners at the centre of everything we do,” expressed the company.

Moore said, “At Michelin Connected Fleet, we help fleet customers unlock the power of data to accelerate their transformation. Thanks to connected technologies, real-time insights and personalised support. Because we go beyond tools by partnering with our customers. Our end-to-end approach combines smart hardware, advanced analytics and the strength of Michelin’s 130+ years of innovation and trust. I’m honoured to lead such a talented and passionate team across North America and to continue building strong, trusted relationships with our customers and partners. Together, let’s keep moving mobility forward!”

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Indian tyre manufacturer Tolins Tyres Ltd launched heavy-duty tractor rear tyres, completing its agricultural tyre portfolio as the company seeks to capitalise on India’s farming sector ahead of the harvest season.

The Kerala-based firm, which already produces tractor-trailer tyres, front tyres and tiller tyres, said the new product would enable it to offer farmers a complete tyre solution for tractors whilst opening fresh revenue streams in the agricultural market.

India’s agriculture sector, which employs nearly half the country’s workforce, is preparing for the upcoming harvest season that typically begins in late September. Tractor sales have remained robust in recent months as farmers invest in mechanisation to boost productivity.

Tolins plans to distribute the new rear tyres through its network of more than 1,200 dealers across India, ensuring availability during the critical farming period.

"The launch of our tractor rear tyres is a significant milestone as it completes our tractor tyre range, enabling us to serve farmers with a comprehensive solution," said Dr KV Tolin, promoter, chairman and managing director of Tolins Tyres.

"Agriculture remains at the heart of India's economy, and we are committed to supporting farmers with durable, high-performance products that enhance efficiency and reliability in the field. Backed by our strong dealer network of over 1,200 partners, this new offering will not only support farmers during the upcoming harvest season but also strengthen Tolins' position in the agricultural segment whilst opening new avenues of growth for the company."

The company said the timing of the launch would allow farmers to prepare their machinery ahead of the 2025 harvest season.

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In the tyre industry, it is very difficult to change a supplier. Once you are a good vendor for the tyre companies, it is very difficult to dislodge the vendor unless they have something really bad. However, post the recent pandemic in 2020, there has been a sea change in the mindset of the tyre companies.   

For a new vendor to enter into the mindset of a tyre purchase head, you have to go head over heels to promote your product and have various tests conducted. However, it still is a long and painstaking process, which could take years just to know that you have not been approved. The importance of getting the right raw material is very important because if the compound is not right, then there is a good chance that the tyre could fail and could lead to a very big lawsuit, especially If a consumer has had a near death experience. So the tyre company has to be 100 percent sure that the new raw material is much better, safer, durable and sustainable.

In the pre-Covid era, you could see that well-established suppliers who have been in the market for decades would not consider participating in an industry event as they did not feel the need because they felt they were well established in the market.

However, after Covid, many companies, especially the vendors, struggled to supply the raw materials to tyre companies due to various issues such as plant shutdown due to labour shortage due to Covid regulations, logistics issues such as lack of truck drivers and less availability of containers, political issues with certain countries, ongoing wars and disputes between countries etc.

So the tyre company purchase heads were compelled to look at other alternative suppliers. If you see the current situation, various tyre companies across the world are under stress as the plants in certain countries are not being viable to run due to various reasons. So they got to be mindful of their purchase of raw materials.

Many tyre companies have also vowed to go the sustainable route by having more ecofriendly materials. So the raw materials companies, whether new entrants or well-established players, have to keep working on innovative products that are sustainable as well as price-competitive.

Tyre companies and their suppliers participating in various forums, such as the recently concluded Tyre Materials Conference in Delhi on 24 June, is encouraging as it provides a platform for the tyre/retread companies to interact with their vendors to understand the changing requirements of tyre companies coming out with new solutions to have a better, safer and sustainable tyre out in the market. n

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