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.

French tyre major Michelin has introduced its new X Line Grip D range, which is designed to work up to 1 million miles (1.6 million kilometres) with up to four retreads. The company shared its designers' claim that this is a ‘once-in-a-lifetime’ leap in tyre technology for fleets.

In addition to the higher range, the tyres also provide 20 percent more mileage and a 20 percent reduction in rolling resistance compared to the Michelin XDN2 tyre.

Designed to meet both wet and snowy conditions thanks to the chevron tread design, these tyres are said to prove 90 percent better starting traction in snow and over 25 percent better wet starting traction.

Fleets also benefit from using the Michelin X Line Grip D tyre, as it is built on the company’s Duracore casing, featuring Infinicoil and Powercoil technologies. 

Pierluigi Cumo, VP – B2B Marketing, Michelin North America, said, “Michelin is never satisfied with current tyre technology when it comes to constantly improving and innovating our products. That’s why Michelin is so proud to introduce the Michelin X Line Grip D tyre. This tyre has the potential going forward to redefine the drive tyre standard in fleets for years to come. It is not an evolution to existing products, but something entirely different the fleet world has never seen before.”

“Michelin has a proven track record of delivering high-quality, reliable products that exceed performance expectations. This fantastic leap in drive tyre technology bring new levels of performance to the road and new levels of savings to our customers,” he concluded.

The Michelin X Line Grip D tyre is available in sizes 295/75R22.5 and 11R22.5.

The launch of the Dr D Banerjee Centre of Excellence at JSS Technical Institutions marks a pivotal step towards transforming India’s rubber and tyre industry. By fostering collaboration between academia and industry, the centre aims to break longstanding deadlocks, equipping the workforce with advanced skills and driving innovation in polymer science and sustainable rubber technologies. With a focus on supporting MSMEs and addressing emerging challenges, especially those posed by electric vehicles and stricter regulations, the DBCOE seeks to become a national hub for research, training and certification, ultimately positioning India as a leader in the evolving global rubber sector.

The Indian Institute of Rubber (IRI) and JSS Technical Institutions inaugurated the Dr D Banerjee Centre of Excellence (DBCOE) recently at the Raghupati Singhania auditorium at JSS Technical Institutions’ Mysore campus.

The institute will serve as a proactive platform for academic and industrial collaboration for polymer science and rubber technology aiming to bridge different industrial deadlocks within the rubber industry.

The event was attended by JK Tyres and Industries CMD Dr Raghupati Singhania, Mysore District Magistrate Lakshmikanth Reddy (IAS), H.H. Jagadguru Sri Shivarathri Deshikendra Mahaswamiji, IRI Chairman Dr R Mukhopadhyay, IRI Vice Chairman V K Misra and industry veteran P K Mohamed, among others.

Setting the stage for the occasion, Mahaswamiji stated, “This is a remarkable coincidence that JSS Science and Technology is associating with Dr D Banerjee Centre of Excellence to usher in new vistas for innovation in rubber technology, where science meets technology for the benefit of society. The centre is dedicated to focusing on innovation, research and new product development and creating high-performance tyres, thereby contributing to sustainability efforts by developing eco-friendly tyre technologies.”

Drawing on the same lines, Misra went on to say, “This is a dream come true as the decision was taken to establish a Centre of Excellence at the occasion of IRCO RubberCon Conference held at Chennai in the year 2015. It gives all of us an immense sense of pride to be associated with the establishment of this Centre of Excellence. It will provide a unique platform to the rubber and allied industry for skill development, training, technology development etc. in the coming years.”

The centre honours the contribution of Dr Banerjee, a pioneering figure in Indian rubber and tyre technology. The initiative was supported by JSS Mahavidyapeetha, IRI and numerous industry leaders and technologists.

Dr Singhania was recognised at the event not only for his leadership in the tyre industry but also for his commitment to nation-building and youth empowerment.

“I am glad that the Indian Rubber Institute, in association with JSS Mahavidyapeetha and the larger Indian rubber fraternity, has set up this centre in memory of Dr Banerjee, the doyen and father of the Indian rubber industry. It is heartening to know that this Centre of Excellence has been established with a clear and noble vision. In fact, this initiative resonates deeply with our Prime Minister’s vision of a ‘Skilled India Mission’,” said Dr Singhania.

He added, “This centre has the potential to play a vital role in realising the vision within the rubber sector. I was delighted to tour the centre and see the comprehensive infrastructure and facilities put in place to fulfil these objectives. I am confident that this centre will soon earn the reputation and recognition it rightly deserves.”

A FULFILMENT CENTRE

According to Dr Singhania, in India’s rapid growth trajectory, institutions like this will play a crucial role in empowering youth with the skills needed to serve this vital sector. Vocational education is a key enabler of employability and plays a transformative role in facilitating a smooth transition of individuals into the industrial workforce.

“I am tempted to share our own experience with industry-academia partnership. We have been successfully running one at IIT Madras for the last 18 years. I believe this kind of close collaboration between industry and academia is something we have been missing in India, and it is indeed a critical step forward,” he stated.

India today stands at a unique juncture with a demographic advantage expected to last for the next 25–30 years. Equipping the population with the right skill sets – both technical and entrepreneurial – opens the opportunity to transform an advantage into a demographic dividend that drives economic growth not just within India but globally.

The employment landscape is evolving rapidly. Business models are being disrupted and new job roles are emerging at an unprecedented pace. The skills and job profiles that were relevant five years ago may no longer be sufficient today. This rapid change demands a dynamic skilling ecosystem – one that is agile, industry-responsive and inclusive.

To meet the future demands of the tyre and rubber industry, such as the increasing use of speciality polymers, advanced materials and the rising adoption of electric vehicles, a technically confident and highly trained workforce is needed.

“This Centre of Excellence can play a vital role not only as a hub for education and hands-on training but also as a platform for testing, research and technology development. Its contribution, particularly to MSMEs in the rubber and allied sectors, will be significant. This centre will evolve into a beacon for the rubber industry, not just in India but across the Asia-Pacific region,” said an optimistic Dr Singhania.

VETERAN’S TALK

Commenting on the occasion, former IRI Chairman P K Mohamed stated that after several years of earnest effort by the officials and members of the IRI, a world-class institute for rubber technology, education, research, testing and skill development has been established.

“Currently, industries recruit students directly from colleges after they complete their BTech degrees. These companies then invest one to two years in training them before assigning them to regular roles. This approach is both expensive and time-consuming. To address this, we propose the introduction of a preparatory course for students, developed jointly by industry and academic institutions, based on a mutually agreed syllabus. Experienced professionals from industry, raw material and equipment suppliers as well as research organisations could be invited to deliver these classes,” said Mohamed.

He added, “We are also in the process of working out an appropriate methodology for funding these programmes. This initiative will significantly benefit industries by enabling them to hire job-ready candidates directly, eliminating the need for extensive post-recruitment training.”

The industry veteran highlighted that forensic analysis of failed products remains a key challenge for small and medium enterprises. To address this, DBCOE has developed comprehensive analytical capabilities and plans to recruit a specialist for failure analysis. This facility will help industries identify root causes of failures and implement corrective actions to ensure continuity.

A material characterisation and wet chemistry lab has been set up to analyse raw materials such as carbon black, rubber chemicals, various rubbers, accelerators, antioxidants and process aids. In-house capability also exists to draft material specifications for future quality control. Plant audits and merit-based approvals can be arranged.

Plans are underway to offer short courses in collaboration with equipment manufacturers and suppliers. Topics will include mixing, extrusion, calendering, tyre building, compounding, engineering, moulding, retreading, footwear, belt technology and latex products. These courses will combine practical and theoretical content, including testing methods and failure analysis. Notably, discussions with HF Mixing Group on mixing technology are progressing well. Additionally, a recognition programme is being developed to honour individuals contributing to different segments.

DEFEATING DEADLOCKS

India’s automotive industry is undergoing a seismic shift, driven by the rapid adoption of electric vehicles and rising performance expectations. While tyres often dominate the conversation, rubber components account for up to 10 percent of the overall value in an automobile and its role is growing more critical than ever.

As vehicle design evolves, so do the demands on rubber parts in the wake of higher torque, lighter weight, reduced rolling resistance and near-silent operation as can be seen in case of EVs. For manufacturers, especially the MSMEs that make up much of the sector, these shifts present a formidable challenge. Existing designs and materials no longer suffice.

Speaking on the vision of the centre and how it will meet industry deadlocks, Dr Mukhopadhyay said, “The mission is fourfold viz-a-viz upskill the current workforce, offer technical support for regulatory compliance and homologation, enable technology advancement for MSMEs and drive sustainable material innovation in collaboration with raw material suppliers. This centre aims to be more than just an academic institution; it’s envisioned as an ecosystem that fuels India’s rubber sector with skilled talent and cutting-edge know-how.”

At the heart of the initiative lies a simple truth that knowledge alone is no longer enough. According to Dr Mukhopadhyay, India’s tyre and rubber sector needs a convergence of skill and science that demand a confluence of practical expertise and theoretical depth. With an eye on decarbonisation, the centre will also push research into bio-based alternatives for carbon black, synthetic rubber, tackifiers and processing oils. From tyre-to-tyre recycling to steel reuse and low-emission polymers, the effort reflects a broader ambition to modernise the industry not just for EV readiness but for long-term sustainability.

“In a market where regulatory demands are intensifying and global competitiveness is rising, this centre represents a strategic leap. It promises to future-proof India’s rubber industry by training the next generation, empowering MSMEs and leading the shift towards a cleaner, more resilient manufacturing base,” he said.

THE NON-TYRE SECTOR

The centre will primarily focus on the tyre industry but aims to support the wider rubber ecosystem, especially MSMEs producing non-tyre components. While large tyre firms have testing and certification infrastructure, smaller players often lack access to technology, skilled labour and analytical facilities. The centre will bridge this gap through hands-on training, consultancy and development support. It will act as a national hub for tyre technology, BIS certification and sustainability compliance while also helping non-tyre manufacturers enhance technical capabilities.

“This sort of institution has been both our dream and our vision. We’ve worked hard to bring it to life, and I’m heartened to see the industry now stepping up. Of course, execution and funding remain challenges. Nothing happens overnight, but I’m confident that with time and collective effort, we will overcome these hurdles. As a PhD holder in this field, I’ve witnessed the struggles students face, particularly during their research projects. Dealing with limited equipment, recruitment issues and maintenance challenges are plenty,” averred Dr Mukhopadhyay.

HURDLES IN THE WAY

Despite India’s robust tyre and rubber sector, a culture of collaboration remains elusive, especially among tyre companies, which have largely remained conservative and insular in their approach.

Industry veterans have long observed that companies prefer to operate in silos, wary that cooperation might breed competition.

According to Dr Mukhopadhyay, the initiative of collaboration has come in the form of grassroots movements like the Wisdom Club – an informal alliance led by senior industry professionals like himself and Mohamed – who have pooled their knowledge and experience to mentor the next generation and drive development where institutions have fallen short.

“Unlike government-backed Centres of Excellence, which number over 40 yet often lack focused activity, and with only one national body showing limited development momentum, these independent efforts fill a critical gap. Furthermore, there are no large grants, no access to state support and infrastructure must be built slowly, piece by piece – often through deferred payments and personal negotiations. We don’t have capital. Yet, against these odds, progress is being made often over decades.”

While attempts to find institutional partners in Chennai and other cities have met resistance or failed to materialise, the effort continues.

EDUCATIONAL PROWESS

Highlighting the nuances of the educational programmes offered by the centre, IRI Advisor S Vasudeva Rao mentioned, “The centre offers two flagship programmes, namely the Diploma in Rubber Technology for diploma holders and fresh recruits and the Postgraduate Diploma in Rubber Technology for science and engineering graduates. Both combine online theoretical modules (delivered on Sundays) with practical assignments and hands-on crash courses at the Mysuru campus. Final examinations are conducted and evaluated by IIT Kharagpur, lending strong academic credibility.”

Rao also noted that the new training powerhouse is an INR 280 million facility funded entirely through industry donations. It brings in over 40 industry experts to teach domain-specific topics ranging from tyre and conveyor technology to PU foams and latex composites. Curriculum is aligned with real-world applications and transparency is ensured via digital course materials and regular assessments.

The initiative has gained formal endorsement across the tyre industry. Companies like Apollo, Yokohama, BKT and JK Tyre now embed course completion as a pre-condition for employment confirmation, reimbursing 100 percent of the INR 40,000 course fee. While the centre is new, the course dates back to 1995 and over 1,200 professionals have graduated with average annual enrolment now exceeding 250.

The centre represents a rare model of successful industry-academia collaboration in India’s manufacturing sector, combining infrastructure, expertise and funding to systematically upskill the rubber workforce.

While the establishment of the DBCOE represents a significant milestone, the broader challenge lies in overcoming the entrenched conservatism and fragmented nature of India’s tyre and rubber industry.

As sustainability becomes central to the tyre industry’s evolution, the spotlight is now shifting from just recyclability and circularity to a newer, promising domain – bio-based materials. While global tyre manufacturers invest heavily in de-carbonisation strategies, companies like Shanghai Cheeshine Novel Materials Technology Co., Ltd. are at the forefront of pushing this transition further. With a growing portfolio of innovative, high-performance bio-based solutions, Cheeshine is betting on the increasing demand for greener alternatives. However, as industry adoption remains cautious, especially in replacing petroleum-derived materials, the road to mainstream acceptance of bio-based materials may still require both technological refinement and a stronger market-driven pull.

Sustainability, recyclability, circularity and renewable materials are the main keywords of the current tyre industry. Companies have invested millions in its efforts towards reaching sustainability goals and attaining a circular economy.

But there is also a new buzz word in town – bio-based raw materials. Cheeshine is confident that the tyre industry has developed an interest towards such materials in its quest towards a sustainable future.

Speaking exclusively to Tyre Trends, the company’s Director of Research and Development Centre, Hai Li, said, “Our goal is to support the rubber industry’s sustainable development. That’s why we’ve selected certain bio-based materials, and through modification, enhanced their properties to make them suitable for rubber applications. There’s growing demand for bio-based materials in tyres due to increased environmental awareness and the need for greener alternatives.”

Founded in 2005 in Shanghai, the company delivers different products and services to the rubber industry. Over more than a decade of growth, the company has expanded its footprint with factories and offices in Jiangsu Huai’an, Jiangsu Suzhou, Shandong Linyi, Hong Kong, Chongqing, Tianjin, India and France, serving a global customer base.

It maintains long-term collaboration with leading Chinese universities and in 2016 established the ‘Cheeshine Scholarship’ at the School of Polymer Materials, Qingdao University of Science and Technology to support innovation in research and development.

With strong research and development capabilities and large-scale production capacity, Cheeshine offers six core product categories including low rolling resistance silane, high-temperature resistant cross-linking agents, wet-skid resistant resins, adhesion promoters, special reinforcing fillers and environmentally friendly processing oils.

It currently holds 108 patents and several technologies for which it has filed PCTs. A standout example is its high dispersion precipitated silica by carbonisation, the precipitated silica via CO₂ substitution for sulfuric acid, a process that currently sets it apart as the only manufacturer with this capability.

MANUFACTURING PROWESS

The company focuses on the ‘magic triangle’, which, in the tyre industry, is referred to the balance between three critical performance factors viz-a-viz rolling resistance, wet grip and wear resistance.

Cheeshine Materials manufactures through its three factories in China and ships worldwide. Its research and development hubs are also located within the country. “We’re a research and development-driven company. Our largest development centre is in Suzhou with over 80 team members, most of whom hold master’s or doctoral degrees. We have a total of three R&D centres. Our teams work closely with clients to co-develop customised and high-performance solutions. We have two main production bases – one in Hua’an, Jiangsu Province, and another in Shandong Province,” said Li.

The company registered a turnover of USD 120 million in 2024 and serves a global base of over 500 customers. Within the tyre industry, it majorly works with the global top 10.

Li expressed pride in the company’s innovations and emphasised on the broad portfolio of rubber additives and sustainable materials. Claiming that the company has a strong market presence both in China and internationally, he provided an overview of the core offerings.

Under the category of bio-based products, Li highlighted a rubber processing oil derived from modified cashew nut shell oil, a product he claimed is manufactured in China only by his company. This oil not only improves compatibility with rubber compounds but also contributes to sustainability. Another innovation was the modified natural rubber (epoxidised NR), developed to serve as a bio-based alternative to synthetic SSBR, offering enhanced performance.

In terms of eco-friendly fillers, he pointed to the high-dispersion precipitated silica by carbonisation, which is more environmentally friendly than traditional sulfuric acid-derived silica and also improves dispersion in rubber compounds. He also mentioned a high-performance liquid rubber additive known for its excellent compatibility and market success.

For advanced functional additives, he cited the modified silane coupling agent, designed to replace TESPT and improve rolling resistance and silica dispersion and currently protected under a PCT patent. The company’s multi-functional cross-linking agent enhances durability and strength, while a line of environmentally friendly accelerators was developed to minimise environmental impact during vulcanisation.

The portfolio also includes speciality resins such as a tear-resistant resin for improved tyre durability and several wet skid-resistant resins, including AMS and modified AMS resin, hydrogenated resin, bio-based resin and modified C5/C9 resin, targeted at enhancing grip on wet surfaces. Additionally, the company produces various phenolic and formaldehyde resins for specific performance attributes like heat resistance and bonding, along with anti-reversion agents and silica dispersion agents that support high-performance compound development.

Among the company’s most cutting-edge innovations is a sulfur-free curing agent, an alternative that replaces traditional sulfur in rubber vulcanisation and enhance tyre ageing resistance and wear resistance while significantly boosting overall durability performance. This agent helps reduce tyre cracking over time and extend product life. Li noted that Cheeshine Materials is currently the only company globally manufacturing this agent and has secured a PCT patent for it.

When asked about the source of their materials, Li acknowledged that while many of the older products were petrochemical-based, the company is now strongly shifting towards bio-based alternatives including bio-oils, resins and natural rubber modifications, in alignment with the industry’s evolving sustainability goals.

MARKET TALK

While the company has a kitty of impressive offerings that might cater to the emerging and evolving demands of the tyre industry, replacing traditional materials completely is a matter that is to be taken up in the near future. Of all the raw materials that go into a tyre, replacing synthetic rubber seems to be a very vague concept for many.

Alluding to why the industry will choose modified natural rubber over SSBR, Li explained, “Modified natural rubber offers higher bio-based content, which supports sustainability goals. Through our proprietary modifications, we enhance its ageing, physical and dynamic properties, making it a strong alternative to synthetic rubber.”

Commenting on challenges, Li said, “Our main challenge is the constant push to develop better products and solutions. Innovation is an ongoing effort. We’re continually working to modify bio-based materials like lignin. Many projects are ongoing, focused on improving sustainability and performance. On the cost front, we aim to keep the cost of our new products on par with conventional ones while providing the added value of sustainability.”

Li described that the business is fairly balanced between domestic and international markets. In terms of global expansion, he mentioned that growth is being driven through a network of affiliates and distributors. The company already has team members based in Paris, Copenhagen and Mumbai and are actively engaging with international partners to access new markets.

In response to questions about the shifting dynamics in Europe, particularly with some local plants shutting down, Li noted that the company is continuing to expand its manufacturing capacity in China. He cited the country’s cost advantages and strong pool of research and development talent as key factors. Looking ahead, the company plans to strengthen its presence in Europe by hiring more local technical support staff to better serve the region.

As for establishing a manufacturing plant in Europe, Li shared that there are no immediate plans to do so. However, the company may consider this move in about two or three years, particularly after the full commissioning of the new domestic plant as part of a longer-term strategy to navigate tariffs and support local demand.

When asked about the future vision, Li stated that Cheeshine Materials’ ambition is to become a true pioneer of the unexplored territories in the rubber industry. The focus remains on leading innovation and continually expanding the company’s global influence.

South Africa's tyre industry, a crucial component of the nation's automotive sector, is currently experiencing a dynamic period marked by significant growth, evolving market trends and a unique set of challenges.

A recent report by ResearchAndMarkets stated that South Africa is the largest market in terms of both production and consumption in the African region, which saw approximately 8.1 million new tyres produced locally in 2024, complemented by around 8 million imported tyres. Replacement tyres continue to dominate the market, accounting for over 70 percent of new tyre sales.

The industry is largely shaped by four major local manufacturers: Bridgestone, Continental, Goodyear and Sumitomo (Dunlop). However, these established players are now facing intense competition from an increasing influx of cheaper imported tyres, a trend that presents both consumer choice and significant pressure on local production.

In addition, the South African tyre market is also reshaping with several key trends including growing emphasis on sustainability, focus on biodegradable materials and the development of advanced tyre technologies. Urbanisation and the expansion of the middle class are driving market growth, further fuelled by an increase in vehicle sales and ownership.

Despite this growth, consumers remain highly price-sensitive, contributing to the rise of low-cost imports. The industry is also seeing increased collaboration, particularly in waste tyre management and efforts to promote local manufacturing through industry associations addressing common challenges. Investment in local production is a notable trend and the dominance of replacement tyre sales is expected to continue.

The tyre market offers numerous opportunities, including the development of products specifically tailored for local conditions, expansion of local manufacturing capabilities and significant export potential. There are also franchise opportunities within the retail and fitment centre segments, alongside a growing tyre recycling industry. The rise of electric vehicles is also creating demand for specialised tyres, while skills development, training and upskilling remain crucial for the workforce, including technicians, technologists and sales consultants. The growth of online retail further expands market reach.

The report found that the industry, however, is not without its hurdles. Intense competitive pressure, coupled with broader economic challenges, poses a constant threat. Environmental concerns surrounding tyre waste management are paramount, as is the pervasive issue of illicit trade, including smuggling, illegal imports and counterfeit products. Rising raw material and other input costs, potential impacts of global trade policies and regulatory complexities add to the burden. Furthermore, technical skills shortages and the unsafe use of second-hand tyres, often linked to improper waste tyre processing, remain significant challenges.

Looking ahead, the South African tyre industry is anticipated to experience moderate growth in the medium term. This growth will be primarily driven by increasing vehicle sales, expanding export opportunities and continued investments in technology and infrastructure.

The market outlook suggests that the increasing prevalence of predominantly Chinese and other low-cost tyres will continue to offer more options for consumers, while simultaneously posing a considerable challenge for local manufacturers. Efforts to promote and develop local manufacturing hubs are seen as vital for stimulating local production and attracting further investment. Innovations aimed at improving tyre lifespan and fuel efficiency are also expected to have both positive and negative implications for the industry's future trajectory.