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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Nokian Tyres has appointed Glenn Arbaugh as the new Head of Research and Development for North America, marking a strategic move to strengthen product innovation for drivers in the United States and Canada. He will lead the region’s R&D efforts from the company’s manufacturing and research hub in Dayton, Tennessee.

Bringing nearly 35 years of global tyre industry experience in technical leadership, product engineering and design, Arbaugh will oversee next-generation tyre development while enhancing product quality and manufacturing standards at the Dayton Factory. His role supports close collaboration between the North American R&D team and Nokian’s global research operations in Finland.

Since opening in 2019, the Dayton Factory has dedicated all production to the North American market and earned recognition as the first tire plant worldwide to achieve LEED v4 Silver certification. Nokian Tyres, inventor of the winter tyre, continues to offer premium all-season, all-weather and light truck tyres across the region.

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Bridgestone has announced executive leadership changes for its West region (Americas, Europe, the Middle East, and Africa), effective 1 May 2026. Scott Damon continues as West CEO, Robert Johnson has been appointed Group President of North America and Wade Sempkowski succeeds Johnson as West Chief Financial Officer.

The company is decoupling the roles of West CEO and Group President of North America to provide clearer scope and focus for its business goals. In his new position, Johnson will assume leadership of North America Core Tire and hold end-to-end ownership and accountability for the full North America profit and loss.

Johnson joined Bridgestone in 2016 as Executive Director of Finance for Bridgestone Retail Operations and later became Vice President of Finance for the Americas Tire Group and Vice President of Stores for Bridgestone Retail Operations. He was named West CFO in May 2024. Before Bridgestone, he held senior finance and operations roles at Advance Auto Parts, Best Buy and Lifepoint Health, earning a finance degree from Belmont University and an MBA from the University of St. Thomas.

Wade Sempkowski

Sempkowski started at Bridgestone Americas in 2019 as Director of FP&A, later becoming Vice President of Finance in 2022 while also serving on the TireHub Board of Directors. His prior experience includes sales analytics and finance roles at Mars Petcare and Southern Land Company, and he holds a bachelor’s degree from the University of Tennessee and an MBA from Vanderbilt University.

Scott Damon, Bridgestone West CEO, said, “Robert and Wade are experienced leaders with a strong understanding of our business, our customers and the priorities ahead. Robert brings a powerful combination of financial, operational and customer-facing leadership to the North America region, and Wade brings deep finance expertise to the West CFO role.”

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Japanese tyre and rubber major Yokohama Rubber Co, has announced plans to construct two new manufacturing facilities for mining and construction machinery tyres in India and Mexico.

These plants will facilitate the transfer of off-the-road (OTR) tyre production acquired from The Goodyear Tire & Rubber Company in February 2025. The company also intends to install equipment at these sites to increase production capacity for ultra-large OTR tyres.

Yokohama Rubber will build a greenfield plant in Odisha, India, representing a capital investment of USD130 million. The facility is designed for an annual production capacity of 9,150 tonnes. Construction is set to commence in Q3 of CY2026, with production expected to start by Q3 of CY2028. This site will assume production currently outsourced to Goodyear facilities in Europe and the United States.

A new brownfield plant will be established in Mexico as a Phase 2 expansion of an existing passenger car tyre plant site. This facility will require a capital expenditure of USD 115 million and will have an annual capacity of 10,650 tonnes. Construction is scheduled for Q3 of CY2026, and production is planned to begin in Q2 of CY2028.

The company is also transferring OTR tyre production from Goodyear plants to a site in Romania acquired in May 2025, as well as to existing factories in Japan, the Czech Republic, and India.

These investments are central to the ‘Yokohama Transformation 2026’ (YX2026) management plan, which aims for significant growth through strategic acquisitions and production network enhancements. By expanding its capacity across all off-highway tyre (OHT) categories, Yokohama Rubber seeks to improve its global market position and corporate value.

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CAMSO Construction has announced the appointment of Andreas Lüllau as Area Sales Manager for the DACH region. His career in industrial and construction tyres began in 2007 at Industriereifen Kontor Lüdtke, where he developed extensive industry experience. The company stated that his strong background adds valuable expertise and a solid understanding of the DACH market. CAMSO Construction looks forward to his contributions in strengthening the company’s regional presence and partnerships.

The company statement read: “His career in industrial and construction tires began in 2007 at Industriereifen Kontor Lüdtke, and since then, he has built extensive experience across the industry. This strong background adds valuable depth to the expertise he brings to the team, along with a solid understanding of the DACH region. We look forward to the contribution he will make in strengthening our presence and partnerships in the market. Welcome to CAMSO Construction, Andreas!”

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