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.

Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.

Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”

Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.

Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.

Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.

Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.

This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.

Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."

Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.

The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.

The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.

Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.

To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.

Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.

International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.

Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.

Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.

Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.

CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.

The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.

The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.

Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.

Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.