With a fresh onslaught of tyres for the luxury and premium performance vehicles, CEAT furthers its positioning in the PCR segment.

CEAT, the flagship company of the RPG Group, is targeting to be amongst the top 10 tyre makers globally and is outlining an ambitious growth strategy that looks to expand its product offerings across segments and the globe.

On 19 March 2025, CEAT expanded its SportDrive tyre series with the launch of new products targeted specifically for luxury and high-performance passenger vehicles. The idea, however, goes beyond just chasing volumes. The company launched Run-Flat tyres, which withstand punctures and can be safely driven at considerable speeds for up to 80 km before needing repair. This also made CEAT the first Indian tyre maker to roll out such a product in the country.

Furthermore, it has also introduced 21-inch ZR-rated tyres that are designed to handle speeds of up to 300 kmph while also being quieter due to the CALM technology, which utilises special foam inside the tyre.

The question is, what is CEAT looking to gain, given that the Indian premium luxury car market is just a fraction of total passenger vehicle sales?

For context, last year the luxury car segment crossed the 50,000-unit sales milestone for the first time in India. In total, the premium car market saw sales of around 51,200 units in CY2024, which was about six percent higher compared to 48,500 units sold last year. This translates to just about one percent of the total passenger vehicles sales in the country. In comparison, some of the Southeast Asian markets see luxury cars compromise about 5-6 percent of the total car sales, and for markets such as Taiwan, it has reached as high as 20 percent.

CEAT, however, believes that being present in the segment is important. Lakshmi Narayanan B, Chief Marketing Officer, CEAT, told Tyre Trends, “There are two main segments. One is the world of sport SUVs, which includes the 21-inch and larger tyres. Currently, this segment is dominated by imported vehicles, making it relatively small. However, our focus is on establishing our presence for brand stature. The second segment is the luxury ecosystem, where our SportDrive tyres cater specifically to high-end vehicles. This is also where the opportunity for run-flat tyres lies. While we are launching two specific sizes, we see significant potential for expansion.”

FOCUS ON R&D

CEAT has been investing significantly towards creating new patents. For instance, in FY2024, the company cumulatively filed 171 patents and spent around INR 1.73 billion in R&D expenditure.

Coming to the recently launched products, the tyre maker has been working on them for over three years. The company’s R&D Centre in Germany and India have worked in tandem to develop world-class products that can meet the needs of the Indian as well as global markets.

“We leverage European strengths while also utilising India’s manufacturing capabilities, which creates a great combination and a significant opportunity for us. Our priority is delivering value to the customer. As we continue expanding within this particular technology, we have introduced three specific deliverables. First, we have the 21-inch ZR-rated tyre, designed for both the Indian and European markets. The German market, especially the Autobahns, requires high-speed-rated tyres, and this offering allows us to cover the entire speed rating ecosystem essential for success there. Second, we have introduced Calm Technology. This technology expands our range into the existing SportDrive and SportDrive SUV segments, which we will continue to develop over time. Third, and most importantly for India, is our run-flat tyre. Our goal is to engage with consumers and provide more relevant value. As we monitor consumer adoption, we will explore opportunities for further expansion,” stated Narayanan B.

It is important to understand, as seen in global trends, that the Indian passenger vehicle segment’s shift towards SUVs is also driving demand for bigger tyre sizes. For instance, 16-inch tyres are becoming a common sight, while demand for 17-inch and 18-inch tyres are being demanded in the aftermarket segment.

But what about the recently introduced 21-inch tyres, where the demand in India remains miniscule?

“The 21-inch tyre has significant potential in Europe, particularly on Autobahns. However, cost advantages vary by region. In a competitive market with over 100 brands per country, success depends on positioning and perceived value rather than cost alone. In Italy, for example, our brand is well regarded due to historical trust in our products,” shared Narayanan B.

ENERGY-EFFICIENT & CALM TECHNOLOGY TYRES

Pollution, energy security and sustainability are pushing industries to embrace cleaner and efficient materials, processes, production and end-products.

In the automotive industry, this translates to automakers and suppliers adopting newer technologies, chemistries and improving efficiency. Electrification of vehicles is amongst one of the newer trends being seen as a significant way to cut down on carbon emissions.

CEAT on its part had introduced EnergyDrive tyre series, which was specially designed for electric vehicles. They not only provided better energy efficiency but also lower noise.

Renji Issac, Senior VP and Head of R&D and Technology, CEAT, explained, “We started with a dedicated product range for EVs called EnergyDrive. However, we realised that, over time, tyres for EVs and internal combustion engine (ICE) vehicles would converge. We have incorporated all our learnings from EV-specific tyre development into our standard product line, ensuring that our future tyres will be suitable for both EVs and ICE vehicles. This approach reduces manufacturing complexity while providing benefits such as extended tyre life, lower noise levels and improved durability for customers.”

Narayan B added that the company sees this trend not only in passenger cars but also scooter segment, especially in India, where electric two-wheelers is seeing significant uptick. “Our EnergyRide caters to two-wheelers, passenger cars and Winenergy supports commercial trucks and buses. We are the first company to offer a complete EV-centric platform across all vehicle categories,” he said.

Vishal Pawar, Senior Vice President – Global Sales & Supply Chain Head, CEAT, revealed that the company currently has around 25 percent market share in the electric two-wheeler segment.

“In the EV ecosystem, we are a leading player, both in OE (original equipment) fitments and the replacement market. However, many consumers do not distinguish between EV and ICE tyres when replacing them. Our marketing efforts include educating mechanics about the differences and best practices for EV tyres. For instance, the Tata Nexon EV was a significant starting point for EV adoption, and now we also supply tyres for the Tata Punch EV, incorporating Calm Technology and foam-based noise reduction. This is an evolving market, and we are positioning ourselves accordingly,” said Pawar.

Right from the start, CEAT worked upon identifying potential failure modes in early development and specifically tested the Calm Technology for such conditions. Issac explained that the adhesive and foam materials have been rigorously validated to withstand extreme conditions, including high-speed driving and water exposure.

“If a tyre requires repair, only a small portion of the foam needs to be removed, and this does not impact the performance. The Calm Technology tyre offers reduction of approximately six decibels in noise, which is a significant improvement. The noise perception is not linear in a vehicle, meaning each decibel reduction translates to a notable difference in actual experience,” said Issac.

Narayanan B added that the idea was to make “these tyres as close to conventional ones as possible, ensuring ease of use for consumers. We have rigorously tested them, and they are designed to deliver tangible value without requiring special treatment from users.”

CREATING AWARENESS

In India, most of the tyre purchase decisions in the aftermarket is heavily influenced by the tyre dealer partner. CEAT too believes that there is a lack of understanding amongst customers in India when it comes to selecting the right kind of tyre for their vehicles, especially in the passenger vehicle space.

For instance, if one asks an average consumer about the speed rating of the tyre, the ideal assumption is that a tyre which fits perfectly. The tyre speed rating is denoted as T, H, V, W, Y or Z – they basically indicate that they are designed to sustain a particular speed.

The company has introduced the ZR-rated tyres that cater to the increasing demand for high-performance vehicles in India, particularly performance-oriented SUVs and sedans that require tyres capable of handling speeds above 220–240 kmph.

The SportDrive SUV tyres feature a dual-layer high-denier nylon overlay to minimise tyre growth at high speeds, enhancing stability and grip, along with a high-denier polyester fabric for durability and the ability to withstand high torque. Available in larger sizes such as 315/40ZR21, 275/45ZR21 and 285/45ZR21, these tyres cater to the super-premium segment.

They have been tested on Germany’s Autobahns and are engineered to meet global standards while being optimised for Indian driving conditions.

CEAT sees export potential in markets such as Europe and Middle East where the demand for high-performance tyres, especially in the 21-inch segment, is quite high.

GROWTH OUTLOOK

CEAT has outlined its ambition of being the second largest tyre manufacturer in the Indian passenger car radial (PCR) segment.

For this, Narayanan B shared that the company is pursuing focus on both premium as well as mass-market segments.

“Our CrossDrive, Secura SUV and Mileage X5 tyres have been well received. Success will come from balancing premium offerings like SportDrive with high-volume products that cater to the broader market,” he shared.

But what about impact of the natural rubber shortage?

Issac shared that at present India witnesses almost 500,000 metric tonnes of natural rubber shortfall and relies on import. The country has a requirement of almost 1.3 million metric tonnes of natural rubber and growing but only around 800,000 metric tonnes is currently produced domestically.

“While initiatives like the INROADS programme aim to boost domestic production, substantial benefits will only be seen post-2030. Until then, securing supply remains a priority,” added Issac.

On the other hand, Narayanan B remains upbeat on the Indian automotive industry’s growth.

“While volume growth remains uncertain, value growth is evident. People are driving more, increasing tyre demand. Despite market fluctuations, we remain focused on moving towards a leadership position in the industry,” signed off an optimistic Narayanan B.

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India’s tyre recycling industry discussed regulation, technology and material recovery at RE-GO 2026, a three-day conclave held in South Goa from 10 to 12 September. Organised by the Tyre & Rubber Recyclers Association of India (TRRAI), the event brought together more than 250 delegates, representatives from more than 200 companies and participants from more than 20 states.

The third annual conclave, hosted at Novotel Goa Dona Sylvia, included more than 20 speakers and experts, three panel discussions and more than 20 exhibitors and sponsors. The conference programme ran on 10 and 11 September , followed by a departure programme on September 12.

Regulation and technology dominate discussions

Held under the theme of policy, compliance and circularity, the conclave brought together recyclers, technology providers, tyre industry representatives, policymakers, regulators, standards professionals, consultants and business leaders.

Discussions covered regulation and standards, extended producer responsibility (EPR), traceability, automation, environmental performance, digitalisation, artificial intelligence, material recovery and circularity.

The technical programme examined automated pyrolysis, co-processing, national standards for tyre pyrolysis oil (TPO) and recovered carbon black (rCB), fleet management, EPR policy and compliance, and the Common EPR Portal. Other topics included life-cycle assessment (LCA), greenhouse gas emissions accounting, digital transformation and technical innovation.

Industry and regulatory representatives attend opening session

The inaugural session featured Satish Goyal, President of TRRAI, and Jairaj Zarekar, its Secretary. Other participants included Anand Kumar, Former Director and Scientist ‘F’ at the Central Pollution Control Board; H. M. Meena, Scientist ‘D’ and Joint Director at the Bureau of Indian Standards; and Sanjeev Sharma, Senior Vice-President And Business Head For Mobility Solutions And Fleet Management at JK Tyre & Industries.

Arup Kumar Misra, Chairman of the Assam Pollution Control Board, was the chief guest and delivered the keynote address, “Tyre Recycling: From Liability to Asset”. The address focused on turning end-of-life tyres into recoverable resources and sources of economic value.

Three panels examine the sector’s priorities

The conclave featured three high-level panel discussions on sustainable recycling policy, recycling technology and the development of a circular tyre economy.

The first examined policy, standards, EPR, compliance and sustainable development. The second focused on shredding, granulation, automation and continuous pyrolysis. The third considered how collection, technology, markets and manufacturing could be connected to support a circular tyre economy.

The panels were moderated by Tushar Suhalka, Varun Manjunath and Jayant Vaidya, respectively.

The event also included an exhibition featuring more than 20 exhibitors and sponsors, networking sessions and an awards and recognition ceremony.

TRRAI highlights collaboration and standards

TRRAI said it had more than 500 members, representing approximately 75 percent of the tyre recycling market. The association works on standardisation, professionalisation, technical advancement, regulatory dialogue and collaboration across the sector.

The conclave highlighted the role of co-operation among industry participants, government bodies, regulators, standards organisations, technology providers and technical experts. Its discussions reflected a focus on stronger standards, improved traceability, environmental accountability, digitalisation and circularity.

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Metso has named Renaud Lapointe as President of its Aggregates business area and a member of the Metso Leadership Team, with the appointment taking effect on 15 November 2026. He takes over from Markku Simula, whose departure from the company was announced on 11 August 2026.

Lapointe has been with Metso since 2005 and has served as President of the Europe and Central Asia market area since December 2024. Before that, he led the Metso Products business line within the Aggregates business area from 2018 to 2024, and between 2014 and 2017 he was Vice President of the Crusher Systems business line in the same segment. Earlier in his tenure, from 2005 to 2014, he held several leadership positions at Metso in France. Lapointe holds a degree in mechanical engineering from ISTIL in Lyon, France.

Lapointe said, "I am excited to return to the Aggregates business and lead such a highly respected global organisation. With its strong customer relationships, industry-leading solutions and talented team, the business is well positioned for continued success and growth.”

Sami Takaluoma, President and CEO, Metso, said, “Renaud brings experience from both our Aggregates business and our market area organisation. This combination will support the continued development of our offering and close cooperation with customers. I look forward to welcoming him to the Metso Leadership Team.”

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JK Tyre & Industries is targeting double-digit growth in FY2027, supported by healthy commercial vehicle demand, sustained OEM traction and a growing market for premium passenger car tyres. However, rising raw material costs and elevated freight rates continue to pressure margins, prompting the company to pursue further price increases and operational efficiencies.

Anshuman Singhania, Managing Director, JK Tyre & Industries, expects demand to remain stable through the second half of FY2027, with commercial vehicle tyre sales projected to record double-digit growth for the full year. While passenger vehicle demand could moderate slightly, healthy OEM order books and replacement market traction are expected to support the industry's growth momentum.

“We are very optimistic going ahead that demand would be quite stable,” Singhania said during the post-results media interaction, adding that the positive momentum was expected to continue through the third and fourth quarters.

Record Revenue in Q2 FY2027

JK Tyre reported its highest-ever consolidated quarterly revenue of INR 48.5 billion in Q2 FY2027, up 20 percent year-on-year (YoY). Consolidated EBITDA rose 28 percent sequentially to INR 3.43 billion, with an EBITDA margin of 7.1 percent. Profit after tax stood at INR 600 million.

Domestic sales grew 32 percent YoY, led by a 65 percent increase in OEM sales following the implementation of GST 2.0. Exports also gained momentum, rising 14 percent sequentially despite geopolitical uncertainties and challenging international market conditions.

Growth was broad-based across product segments. OEM volumes increased 76 percent in truck and bus radial (TBR) tyres and 35 percent in passenger car radial (PCR) tyres. The tubeless tyre portfolio grew 25 percent YoY, against estimated industry growth of 10 percent, while tipper tyre sales increased 20 percent compared with industry growth of 11–12 percent.

Sales in the two- and three-wheeler category rose approximately 85 percent YoY, driven primarily by scooters. Replacement sales increased 20 percent, reflecting continued traction across channels.

Despite the revenue growth, profitability remains under pressure as input and logistics costs rise faster than they can be recovered through pricing.

Raw Material Costs and Freight Weigh on Margins

JK Tyre's raw material basket increased approximately 9 percent sequentially in Q2, with the cumulative increase over the preceding six months estimated at around 30 percent. Singhania expects a further 4–5 percent increase in the basket during Q3.

Elevated container freight rates have added to the pressure, with increases across geographies affecting exports and shipments from India. Higher petrol and diesel prices have also contributed to rising logistics costs.

The company is seeking to offset these pressures through price increases, manufacturing efficiencies and a richer product mix. However, the timing of margin recovery will depend on the extent to which higher costs can be passed on in a price-sensitive market.

Further Price Hikes Planned

JK Tyre increased prices by approximately 4–5 percent in Q1 and a further 7 percent sequentially in Q2, taking the cumulative increase during the first half of FY2027 to around 11–12 percent. The company intends to implement another 4–5 percent increase in Q3, subject to market conditions.

“The raw material increase is putting a lot of pressure on margins. But we are steadily increasing our prices to pass through,” Singhania said.

OEM pricing is partly linked to input cost indices, allowing some increases to be recovered through contractual adjustments. In the replacement market, price increases have been implemented more gradually over the past two quarters, with further adjustments expected.

Singhania acknowledged that the industry typically experiences a lag between cost escalation and full price recovery. While the company expects margins to improve through better OEM mix, price indexation and operational efficiencies, it has not quantified the anticipated improvement.

Premium Tyres Gain Share

JK Tyre is increasing its focus on premium passenger car tyres, particularly those with rim sizes of 16 inches and above. The company said the share of these tyres in its passenger car OEM mix increased to approximately 40 percent in H1 FY2027, compared with 35 percent in FY2026. These sizes account for around 27 percent of its overall mix, including the aftermarket.

The shift towards larger rim sizes is being supported by new vehicle launches and wider adoption across passenger vehicle categories. JK Tyre has secured 10 OEM approvals during the year, eight of which involve models in the 16-inch-and-above category. These include the Maruti Suzuki Brezza, Mahindra Thar, Renault Duster and Tecton, and MG Tomahawk, as cited during the media interaction.

“The market is growing, but our market is growing at a faster rate,” Singhania said, highlighting the opportunity presented by new OEM programmes and rising demand for larger rim sizes.

The company expects this segment to support product realisation and improve its sales mix, with additional capacity helping it meet evolving OEM requirements.

Expansion Continues as Exports Offer Headroom

JK Tyre is proceeding with its INR 11.3 billion capacity expansion programme, which Singhania confirmed would not be deferred. The previously announced INR 50 billion capital expenditure programme is also progressing through its initial phase.

The investments are intended to support domestic demand and create capacity for export opportunities. JK Tyre reported encouraging demand from Latin America and Africa, while some markets in Asia and Europe softened amid geopolitical uncertainty.

The company plans to continue serving established markets across Latin America, the Middle East, Southeast Asia and Africa, alongside a limited presence in Europe, while prioritising domestic OEM and replacement requirements.

For the second half of FY2027, JK Tyre expects commercial vehicle demand to remain supportive and is targeting double-digit growth in the segment for the full year. Strong OEM order books, replacement demand and the increasing contribution of premium tyres are expected to underpin growth. The key challenge will be translating higher volumes into sustainable profitability as the company navigates raw material inflation, freight costs and the lag in price recovery.

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American Tire Distributors (ATD), a leading independent supplier in the replacement tyre industry, has appointed Michael Broderick as Interim President, effective immediately. He takes over from Ira B Silver. ATD also announced that the company and Silver have parted ways.

Broderick, who currently sits on ATD's Board of Directors and brings extensive automotive aftermarket experience, will guide the leadership transition. Meanwhile, the Board is conducting a comprehensive search for a permanent Chief Executive Officer, evaluating both internal and external candidates.

ATD continues to hold a significant position in the North American tyre market, supported by a broad distribution network, longstanding customer relationships and a diverse portfolio of manufacturer and proprietary brands. During 2026, the company eliminated more than USD 170 million in structural costs, reinvesting a portion of the savings, while shareholders have backed further investment in the national distribution network to strengthen market position and operating performance.

Philippe Gilbert, Chairman of the Board of Directors of ATD, said, “ATD has made important progress sharpening our focus on our core tyre distribution business, improving operational efficiency and delivering outstanding service and value to our customers and partners. As we look to accelerate these efforts, we determined that now is the right time to initiate a leadership transition. Mike brings substantial experience leading complex automotive businesses, and we are pleased that he is stepping in as Interim President to help us during this transition period. He will be supported by the ATD management team, which has played a central role in the Company's operational transformation, providing continuity of leadership across its distribution operations and strategic initiatives. On behalf of the Board, I would like to thank Ira for his leadership and contributions to help move the Company forward during a critical time.”

Broderick said, “I’m excited to step in and work alongside ATD’s team of talented associates as we focus on enhancing our network to provide customers with high-quality products and unparalleled service. As a member of ATD’s Board and over a decade of working with ATD as a customer, I’ve witnessed firsthand the strength of the Company’s robust national distribution network, deep customer and manufacturer relationships and long-held commitment to exceptional service. I look forward to advancing our efforts to strengthen our core tyre distribution business and build a stronger, more efficient company.”

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