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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ATIRE, a leading Sri Lankan Solid tyre maker, has appointed Thierry Miche as director of OEM and product, effective September 2026, bringing more than 25 years of experience in the global tyre and mobility industry to the role.

At ATIRE, Miche will lead the company's OEM and product activities, focusing on portfolio development, OEM relationships and expansion into new technical and commercial markets globally.

Miche joins from Michelin, where he spent 26 years in senior product and operational leadership positions, including roles at Solideal and Camso before their integration into the French group.

His most recent position was product Management Director for Beyond Road, with global strategic and operational responsibility for the product portfolio. He led teams across Belgium, Canada, France and the US, working with research and development, industrialisation, original equipment manufacturer (OEM) and aftermarket sales, and supply chain functions.

Previously, Miche was Product Line Executive Director For material handling, overseeing the global product platform and holding full profit and loss responsibility for three manufacturing sites in Belgium, Germany and the US. He also led global research and development teams in Belgium and Sri Lanka.

His career has spanned product management and engineering, technical support, warranty management, quality assurance and systems. The experience covers the development and delivery of products across engineering, industrialisation, validation, sales and supply chain operations.

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ZC Rubber, China’s largest tyre maker, is running 18 AI agents across its Hangzhou 5G plant. It insists the goal is smarter manufacturing, not emptier factory floors.

Walk into the industrial conversation about automation these days and ‘lights-out’ production tends to come up within minutes: factories with no people, no lighting and machines working in the dark. However, ZC Rubber, the Hangzhou-based group that ranks among the world’s top nine tyre companies, would like to correct that impression before it takes hold.

“We see this as a 5G Smart Factory, or Future Factory V2.0, rather than a ‘dark factory’. The goal is intelligent manufacturing, not simply removing people from the production process,” the company said in an interview.

That is a notable position from a company that has just put 18 AI agents to work across its production chain and reports defect rates well under half those of its earlier operations. It is also a considered one, and the details explain a good deal about how the world’s largest tyre market is approaching the factory of the future.

PEOPLE AT THE EXCEPTIONS

ZC Rubber’s division of labour is simple. Automation, AI and real-time data are steadily taking over what the company calls ‘repetitive and highly standardised operations.’ Its people are being moved towards engineering, process management, quality assurance and the handling of exceptions, meaning the unusual problems that no model has seen before.

“We will continue to increase automation, but fully unmanned production is not the goal,” ZC Rubber said. “It is about combining intelligent systems with human expertise.”

The same logic applies to the future. Asked whether lights-out production is on the roadmap, ZC Rubber was clear. “We do not see fully lights-out production as a goal in itself. Technology will be introduced where it brings clear improvements in quality, efficiency, safety and sustainability,” it said.

EIGHTEEN AGENTS, ONE PRODUCTION CHAIN

The scale of the AI deployment is considerable. Since June 2025, ZC Rubber has introduced 18 AI agents across the full production chain. Their use ranges from AI-assisted formulation and virtual simulation to equipment maintenance, production scheduling and quality control. According to the company, they have helped shorten tyre development cycles by 50 percent and lifted production efficiency by 50 percent.

Where does the value come from? Not from any single stage, the company suggests. “The biggest value comes from using AI to analyse production data, optimise process parameters and support faster decision-making across the manufacturing process,” it said. ZC Rubber does not currently publish a stage-by-stage breakdown of the gains.

INSPECTION AND THE DEFECT RATE

Quality control is where the company’s numbers are most striking. Its latest AI-based visual inspection systems, it says, can achieve a defect detection rate of close to 100 percent, improving both the speed and the consistency of inspection. That matters most in high-volume passenger car radial (PCR) output, where human inspectors face the twin problems of fatigue and sheer throughput.

Zooming out, the company says AI and digital quality control across its smart manufacturing system have cut its product defect rate from 1.2 percent to 0.5 percent.

HOW THE SYSTEMS TALK TO EACH OTHER

“Thousands of sensors collect production data in real time, while 5G connects equipment, quality inspection and logistics systems,” the company said. The APS+MES system pulls production, quality and logistics information into one place ‘so operations can be monitored and adjusted quickly’. AI and big data analytics then help staff spot problems and make faster production decisions.

AN EARLIER SET OF NUMBERS, UPDATED

ZC Rubber’s earlier claims of a 15 percent efficiency gain, up to 40 percent lower defect rates and a 5 percent cut in energy use make one notice that the latest figures are considerably better. The company is candid about why. “Those figures reflect an earlier stage of our smart factory development,” it said.

The current numbers, for the 5G Smart Factory, are a 50 percent improvement in production efficiency, defect rates down from 1.2 percent to 0.5 percent and a 10 percent reduction in overall energy consumption.

As for which technology deserves the credit, ZC Rubber declines to rank them. “We do not break down the improvement by individual technology,” it said, naming instead the key components: AI-based process control, automated inspection, intelligent logistics, APS+MES production management and data-driven quality control.

ENERGY, MEASURED VALVE BY VALVE

The energy figure is worth a closer look, because it comes from a fairly granular system. ZC Rubber’s energy management combines 5G, IoT, big data, AI and digital-twin technologies. Smart sensors, smart meters and smart valves feed real-time data into a central energy platform, while AI supports analysis and operational optimisation.

The division of labour among the technologies is neat. “5G provides the connectivity, while AI, big data and digital twins help turn the data into better energy-management decisions,” the company said.

TWO PLATFORMS AND A DIFFERENT STARTING POINT

The manufacturing story is inseparable from the development story. ZC Rubber runs two proprietary technology platforms: the X-Tech System, primarily for truck and bus radial (TBR) tyres, and the Phecda Tech System, primarily for PCR tyres. Each integrates compound formulation, tyre structure, process engineering, simulation, testing and intelligent manufacturing within a single development framework.

Their defining feature is what the company calls the Forward-development Approach. Traditional development, it explains, “often starts from an existing product and improves it through repeated design and testing cycles”. ZC Rubber starts elsewhere: with the target performance, whether that is vehicle characteristics, duty cycle, climate, road conditions or customer requirements. The compound, tyre structure and manufacturing process are then built around those targets. “This shifts the workflow from repeated iteration to a more integrated, target-driven development process,” the company said.

That, it argues, is where the halving of development time comes from. The 50 percent reduction reflects ‘a more integrated digital development process’, combining engineering expertise with simulation, AI-assisted tools and closer links between R&D, testing and manufacturing. AI lets engineers evaluate more design options against defined performance targets, and virtual simulation cuts out unnecessary physical iterations.

How tightly these platforms are wired into live production data has not been shared publicly. X-Tech and Phecda, the company said, connect R&D, manufacturing and validation within an integrated development process, but the detailed real-time data architecture behind them ‘is not something we currently disclose publicly’.

Henry Shen, ZC Rubber’s Senior Vice President, has made the wider point in the context of the group’s recent State recognition. “Our objective is not simply to develop an individual material, tread pattern or manufacturing process,” he said. “X-Tech and Phecda are complete development systems that connect user requirements with simulation, materials, tyre engineering, manufacturing and validation.”

THE STATE PRIZE

That recognition is significant. ZC Rubber, together with Harbin Institute of Technology, has been awarded the Second Prize of China’s State Science and Technology Progress Award for a project titled ‘Key Technologies and Green Intelligent Manufacturing of High-Performance Tires’. It is one of the country’s highest state-level honours for scientific and technological innovation, and ZC Rubber says it is the only Chinese tyre manufacturer in the past decade to win it at the Second Prize level or above.

The company backs the claim with spending. In 2025, it invested around RMB 1.54 billion (approximately USD 226 million in R&D, equal to 3.43 percent of annual revenue, according to its annual report. The award, it says, recognises technologies that have ‘progressed beyond laboratory research into industrial application’.

GLOBAL FOOTPRINT

ZC Rubber has built a truly global footprint, combining a strong manufacturing base in China with an expanding network of operations across Europe, the Americas, Southeast Asia and beyond. In China, the company operates through multiple sites, including its headquartered in Hangzhou and facilities in Tianjin, Chaoyang, Jiande, Qingquan, Yonggu, Anji and Jintan, supported by dedicated units for recycling technology and automotive aftermarket services in Hangzhou.

Beyond China, ZC Rubber has established a European presence through ZC Rubber Europe GmbH and its Europe Technical Center, alongside ZC Rubber America Inc. in the United States, ZC Rubber Brazil IMP EXP LTDA in South America and ZC Rubber Thailand Co. Ltd. and PT. Matahari Tire Indonesia (MTI) in Southeast Asia.

The company is also preparing for further expansion, with new projects under development in Vietnam and Mexico (Marea Tire de Mexico, S.A. de C.V.) and a feasibility study underway in Egypt. Together, these locations allow ZC Rubber to serve customers closer to their markets, strengthen supply chain resilience and combine local insight with global technical expertise.

CUSTOMISATION WITHOUT THE PENALTY

The forward-development model has a commercial payoff: tyres tailored to where and how they will be used. Asked whether the platforms allow genuine mass customisation, including regional climates and EV-specific requirements, ZC Rubber answered ‘to a significant degree’.

“X-Tech and Phecda allow us to develop tyres around specific climates, road conditions, vehicle applications and performance targets, including EV-specific requirements,” it said. On the factory floor, flexible production lines adjust output as product mix and orders change. The company does not disclose a separate efficiency figure for customised production, though ‘the goal is clear: to increase product flexibility while keeping production efficient’.

The regional examples are concrete. In Asia, X-Tech underpins the X-Elite Truck Tyre Series. In Europe, it is applied to the WESTLAKE Gen II commercial lineup, with a focus on fleet efficiency, performance and regulatory requirements. Phecda sits behind the WESTLAKE ZuperAce Z-007 and GOODRIDE Solmax 1 passenger tyres, and technologies from both platforms have been applied across ARISUN’s full TBR and PCR ranges for the Americas.

“International markets do not have identical requirements,” Shen said. “A tyre developed for European highway fleets, Southeast Asian transport operations or passenger vehicles in the Americas must respond to different vehicles, roads, climates and customer priorities.”

WHAT COMES NEXT

Much of the technology commonly billed as next-generation is already in service at ZC Rubber. Automated logistics, AI-based visual inspection, process optimisation, digital simulation and virtual testing are all in use. Digital twins are applied in areas such as energy management, and a broader digital-twin virtual factory is part of the next-stage plan.

The company frames the coming three years as a period of deepening rather than reinvention: more smart-factory applications, more AI and industry-specific models and close attention to emerging technologies such as humanoid robotics ‘as they mature’.

That phrasing may be the most revealing thing about ZC Rubber’s approach. It is chasing results rather than headlines. As the company itself puts it, the launch of the Hangzhou plant marks ‘a new opportunity and starting point’, and its stated ambition is to become a world-leading tyre company with higher standards. Whether the lights stay on, it seems, is the least of its concerns.

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AMETEK recently completed its USD 5- billion all-cash acquisition of a portfolio of instrumentation businesses from Indicor.

The businesses, collectively known as Indicor Instrumentation, make equipment for industrial and scientific applications. Their products serve markets that overlap with AMETEK’s existing operations and generate recurring revenue from consumables, services and aftermarket support.

David A Zapico, AMETEK’s Chairman and Chief Executive, said: “We are excited to complete this highly strategic acquisition and to welcome the Indicor Instrumentation team to AMETEK. With its mission-critical solutions, deep technical expertise, and strong positions in attractive end markets, Indicor Instrumentation is an excellent fit with AMETEK. We also see meaningful opportunities to create value through integration into our proven operating model.”

Indicor Instrumentation is expected to contribute about USD 350 million to AMETEK’s sales in 2026 and to be modestly accretive to adjusted earnings for the year.

The acquired businesses will join AMETEK’s Electronic Instruments Group and Electromechanical Group, according to their products and market focus.

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The Goodyear Tire & Rubber Company has elected Joe Hinrichs as chairman of its Board of Directors, effective 7 October 2026. He will also chair the board's Governance and Executive Committees. Hinrichs joined the board in 2023 and succeeds Laurette Koellner, who will retire at the 2027 annual meeting under Goodyear's Corporate Governance Guidelines.

Hinrichs most recently served as President and Chief Executive Officer of CSX Corporation. Before that, he held numerous leadership roles at Ford Motor Company, including President of the Global Automotive Business, Executive Vice President and President of Global Operations, Executive Vice President and President of the Americas, President of Asia Pacific and Africa, and Chairman and Chief Executive Officer of Ford China. He also led Ford Canada. Hinrichs holds a bachelor's degree in electrical engineering from the University of Dayton and an MBA from Harvard Business School.

Koellner previously held several leadership roles at The Boeing Company. She joined Goodyear's board in 2015, became independent Lead Director in 2019, and Non-Executive Chairman in 2024.

Hinrichs said, "I would like to recognise and thank Laurette for her leadership, dedication and unwavering commitment to Goodyear. On behalf of the Board, we are grateful for her many contributions throughout her more than a decade of service. I look forward to working alongside my fellow board members and the leadership team as we continue to innovate, strengthen our competitive position, create long-term value for our shareholders and build a stronger Goodyear."

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