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.

The German Rubber Industry Association (wdk) has appointed Michael Berthel as its new Managing Director, effective 1 January 2027. The decision was made by the wdk Executive Board, with Berthel set to succeed Boris Engelhardt, who is retiring at year-end at his own request after leading the association since 2011. Berthel brings deep institutional knowledge to the role, having served the wdk since 1998 and currently holding the position of Chief Economist.

Reflecting on Engelhardt's tenure, wdk President Michael Klein acknowledged the outgoing director's dedication over 15 years, noting that membership doubled during that period and the association earned worldwide recognition as the industry's voice. Klein expressed confidence that Berthel's extensive experience and strong network will further reinforce the wdk's role as the representative of the rubber industry's interests. The leadership transition is scheduled to take effect at the start of 2027.

Boris Engelhardt

Michael Klein, President, wdk, said, "We thank Engelhardt for his dedication over the past 15 years. During this time, not only has the number of association members doubled, but the wdk has also become known and recognised worldwide as the voice of our industry. With Berthel, we have gained a highly experienced and exceptionally well-connected expert as Managing Director, with whom we will further strengthen our position as the representative of the rubber industry's interests."

Gurugram-headquartered tyre major Apollo Tyres has appointed Abhineet Kothari as India Business Head – Vredestein Tyres, effective November 2026. In his new role, Kothari will be responsible for strengthening the presence and expanding the business of Vredestein, Apollo Tyres’ premium tyre brand, in the Indian market.

His appointment follows his tenure as Marketing Head, India and South-East Asia, at Apollo Tyres, where he led the company's marketing function after previously serving as Category Head – Passenger Vehicles.

In his new role, Kothari will focus on building the Vredestein brand, expanding its market presence and strengthening its positioning in India's premium passenger vehicle tyre segment.

Kothari brings over 13 years of experience across marketing, brand management, category leadership, sales and business management. Prior to joining Apollo Tyres in April 2024, he spent two years at Paytm as AVP – Payments, where he headed the profit and loss responsibility for the Recharge and Bill Payments business. He was also involved in brand marketing and communications for Paytm's mobile gaming business, First Games.

Prior to Paytm, Kothari spent nearly nine years with Castrol, holding various roles across category management, brand management and regional sales. His assignments included Category Manager, Senior Brand Manager, Regional Sales Manager and Brand Manager.

He began his professional career in the maritime sector as a Marine Engineer Officer with Shell Shipping, serving aboard very large crude carriers (VLCCs) and very large gas carriers (VLGCs) between 2007 and 2011.

Kothari holds an MBA in Marketing and Operations from the Management Development Institute (MDI), Gurgaon, and a bachelor's degree in Marine Engineering from Jadavpur University.

His appointment comes as Apollo Tyres continues to develop Vredestein's positioning in India's premium tyre market, leveraging the brand's European heritage and premium product portfolio to address evolving consumer preferences.

Kraton Corporation, a global producer of speciality polymers and bio-based chemicals derived from pine wood pulping byproducts, has named Brian Rea as Chief Human Resources Officer. The appointment strengthens the company's leadership team as it continues to prioritise workforce development and organisational effectiveness.

Rea joins Kraton with extensive international experience in human resources leadership across multi-site manufacturing businesses. His background spans talent and succession planning, organisational transformation, labour relations, employee engagement, safety and change management. His appointment underscores Kraton's dedication to employee growth and well-being while building an organisation positioned for long-term success.

Romi Yoon, Chief Strategy Officer, Kraton, said, “We are excited to welcome Brian to Kraton’s executive leadership team. His extensive experience leading human resources across global manufacturing organisations makes him a great fit for Kraton. I look forward to his contributions as we continue to strengthen our organisation and position Kraton for the future.”

Rea said, “I am excited to join Kraton and work alongside its immensely talented global team. I look forward to helping further shape the culture, strategy and goals that will lead Kraton into the future. I am grateful to the Kraton leadership team for the opportunity to serve our employees.”

Spain has built a mature system for managing end-of-life tyres, but recycling them is only half the circularity equation. Tratamiento Neumáticos Usados (TNU) Chief Operating Officer Javier De Jesus Landesa says the bigger challenge is creating demand for recovered materials. With retreading production declining, recycled materials struggling for stable outlets and pyrolysis economics dependent on downstream markets, Royal Decree 712/2025 faces a crucial test of answering whether stronger regulation can translate Spain’s waste-management capacity into commercially viable circular markets for recovered tyre materials.

Europe is reportedly one of the most mature markets for circularity objectives within the tyre industry. It is a market characterised by regulations, awareness, cross-country collaboration to tackle end-of-life tyres (ELT) disposal and consumption of recovered materials.

However, on the Southwestern side of the continent, especially Spain, things seem to be ironical. The country’s integrated management system for used tyre treatment, popularly known as Tratamiento Neumáticos Usados (TNU), managed nearly 99,000 ELTs in 2025.

The main purpose of this organisation is responding responsibly to the sources of ELTs and managing their recycling effectively. This is generally done through reusing and recycling.

The numbers stated above is 7.4 percent more than the previous year. TNU handled 42,910 collection requests and provided services to 5,510 collection points. Of the total managed, 9.94 percent went to preparation for reuse, 42.91 percent to material recovery and 47.15 percent to energy recovery.

Despite these numbers, the recyclable materials market faces a conundrum, which is quite ironical considering the global market’s pent-up demand for such products. Speaking to Tyre Trends exclusively, TNU Chief Operating Officer Javier De Jesus Landesa said, “The main challenge is demand for the materials we recover.”

He added, “Spain has been working with Extended Producer Responsibility for almost two decades. We have a well-established collection system, a network of authorised waste managers and sufficient industrial capacity to process the tyres generated. The problem comes afterwards. We can recover recycled rubber, steel and textile fibres through new technologies, but those materials need a market.”

The organisation can even finance and organise collection, ensure proper management and guarantee traceability, but it cannot create commercial demand for recovered materials.

Javier De Jesus Landesa, Chief Operating Officer, TNU

ROYAL DECREE

Spain’s Royal Decree 712/2025, passed on 27 August 2025, introduced changes in the country’s policy governing ELTs. According to Landesa, the most significant change leaned towards traceability and the quality of information.

“The new Royal Decree introduced stricter requirements regarding tyres placed on the market, their collection, treatment and final destination. We need increasingly accurate information and must be able to demonstrate what actually happens to those tyres,” he said.

And this affects the entire chain including producers, importers, waste managers and Producer Responsibility Organisations.

Despite these efforts, tyre reuse numbers aren’t seeing a fast uptick. The foremost reason, according to Landesa, is that despite the prohibition laid down in Article 17.1(a) of Royal Decree 712/2025, the separation, sorting and sale of ELTs by collection points continues to take place. “In our view, greater environmental inspection and enforcement by the competent regional authorities is needed,” he stated.

This results in a limited real availability of tyres that could have a second life. For a tyre to be prepared for reuse or for a casing to be retreaded, it must enter the authorised management system and remain in suitable condition.

In 2025, within the 9.94 percent managed by TNU for preparation for reuse, 4.69 percent corresponded to second-use tyres and 5.25 percent to retreading.

In addition, the regulation establishes a minimum target of 15 percent by weight for preparation for reuse starting in 2025. This 15 percent target remains the baseline minimum through the subsequent milestone years of 2030 and 2035.

And on the focus on traceability, the industry is still adapting. “Our position is quite clear. We want more traceability but less bureaucracy. Following the approval of the Royal Decree, we carried out a nationwide information campaign aimed at producers and waste managers and are continuing to provide extensive guidance to such members, explaining the regulatory changes, new obligations and how they should be applied in practice,” Landesa said.

MATERIAL INGESTION

In 2023, Spain produced 84,160 tonnes of recycled rubber, 37,776 tonnes of steel and 17,614 tonnes of textiles from ELTs.

Approximately 54 percent of the rubber was used for artificial turf and bases; 35 percent went to playgrounds, sports surfaces and safety flooring; 9 percent to moulded components and rubber products and only 2 percent to bituminous mixtures.

Furthermore, granulate will no longer be placed on the European Union market as infill material for new artificial turf pitches from October 2031.

This means that the industry needs to find and develop new applications. “We cannot ask the sector to recycle more and then fail to ensure viable outlets for those materials,” said Landesa.

Public procurement can be an important tool for large scale material ingestion as public expenditure represents around 14 percent of the European Union’s GDP.

“We have a regulatory basis, but the need is to translate it into actual public procurement specifications and turn that intention into demand,” he said.

He also noted that price cannot be the only criterion for competing with virgin raw materials. If circular economy is genuinely promoted, then public procurement must also take into account the use of recycled materials and the environmental benefits of replacing virgin raw materials.

Hence, Green Public Procurement can be decisive not only in meeting environmental objectives but also in generating stable demand for recycled rubber and reducing the consumption of virgin raw materials.

Pyrolysis also has an important role to play for the recycling industry. However, chemical recycling requires significant investment and its outputs must meet requirements for industrial use.

TNU has worked on this route for years and partnered with Greenval Technologies in 2021 on plants using technology developed with the Spanish National Research Council (CSIC). The main technical and production challenges have largely been overcome.

“The bigger challenge is demand. Tyre pyrolysis oil has a clearer market, while recovered carbon black lacks stable demand from tyre manufacturers. Achieving end-of-waste status for qualifying pyrolysis products would also make them easier to market. Ultimately, even technologically successful plants need stable markets for their outputs to remain economically viable,” said Landesa.

SECOND LIFE

Landesa notes that electric vehicle tyres demand more caution from the industry owing to greater weight. The demands around wear, efficiency and noise are also driving changes in tyre designs, materials and compounds.

However, at end-of-life, EV tyres still contain recoverable materials such as rubber, steel and textile fibres. The same applies to retreading as an EV tyre can be retreaded if its casing remains suitable.

“Recycling and retreading industries have adapted to previous changes in tyre technology and can do the same with EVs. However, EV tyres will introduce new considerations, and it is premature to conclude that they will inherently be less suitable for retreading,” said a confident Landesa.

Eco-design should therefore consider not only first-life performance but also retreadability, extended tyre life and eventual recycling. Regulations already require corporate prevention plans to include measures supporting longer tyre life, reuse and recycling.

As EV tyres evolve, their design should not unnecessarily restrict retreading when the casing remains technically suitable.

Nonetheless, the current retreading landscape of the country paints a gloomy picture. The problem is primarily economic and not a shortage of suitable casings.

Spanish and European retreaders have the expertise to adapt production, but demand has fallen amid competition from low-cost imported new tyres and insufficient policy support.

In Spain, retread production has fallen 52 percent in 20 years, from 1,132,500 to 540,850 units annually, while plants have declined from 46 to 12 units.

This creates a contradiction wherein legislation prioritises extending tyre life before recycling, yet the industry doing precisely that continues to shrink.

“Supporting retreading would reduce raw-material consumption while preserving European industrial activity and employment. We need to change perceptions and look beyond purchase price. For fleets, cost per kilometre and the casing’s entire service life are more relevant. A good casing can be regrooved and retreaded, potentially more than once,” said Landesa.

Safety misconceptions also need addressing. Retreaded tyres must comply with UNECE Regulations Nos. 108 and 109 for passenger and commercial vehicles.

Policy can stimulate demand. Royal Decree 712/2025 calls for Spanish public administrations to promote retreads in public fleets and services wherever technically feasible. Tax incentives and subsidies could provide further support.

Landesa stated that technology is not the principal problem because retreading is already a mature and regulated industry. Challenges include ensuring suitable casings reach retreaders, tyre design, consumer perception, low-cost imports and public policy.

The principle is straightforward that if a casing can have another life, it should be reused before being destroyed for material recovery. He mentioned that looking at the total cost of ownership could revive the industry, particularly in professional transport.

“Fleets should consider total service-life cost rather than purchase price alone including mileage, maintenance, efficiency, casing life, regrooving and retreading. Extending casing life also delays the need to manufacture another tyre and reduces raw-material consumption. For fleets, therefore, cost per kilometre provides a more realistic measure of tyre economics,” he explained.

TOWARDS STABILITY

Landesa contended that policy measures could provide stability to the entire industry. “The problem is not unique to Spain. Europe needs to move from a policy focused on collection and recycling towards one that ensures recovered materials are actually used again and replace virgin raw materials,” he stated.

Royal Decree 712/2025 requires producers choosing a collective system to use it for all replacement tyres they place on the market, although they can switch systems under established conditions.

This should clarify responsibilities without eliminating competition. Producer Responsibility Organisations such as TNU will continue competing on service, efficiency, costs, technology and information quality. The key is ensuring everyone operates under the same obligations, rules and safeguards.

And for Landesa, there are three very clear priorities, namely market, enforcement and simplification.

“The first is creating a market for retreading and recycled materials. If we want to achieve targets set by the Royal Decree, then we need demand. Green Public Procurement must play a much greater role,” he noted.

The second is strengthening inspection and enforcement of flows taking place outside the authorised system. PROs must guarantee management, data and traceability, but inspection, enforcement and the fight against fraud are the responsibility of public authorities.

And the third is simplification and digitalisation. “We need greater traceability and better data, but we also need to eliminate duplication and review procedures that add administrative burdens without improving environmental outcomes,” said Landesa.

After almost 20 years, Spain has a mature system, an established network of waste managers and industrial capacity. And many of these challenges are shared across Europe.

Now it needs to take the next step by first making the most of tyres that can still have another life and then ensure that the materials recovered are actually used again.

Spain’s challenge is therefore shifting from managing tyre waste to creating an economy capable of absorbing what that system recovers. Collection, traceability and processing capacity alone cannot deliver circularity if retreading continues to contract and recycled materials struggle to find stable markets.

Royal Decree 712/2025 strengthens the regulatory framework, but its real test will be whether procurement, enforcement and industrial demand can turn recovered materials back into commercially viable products.