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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Sri Lanka-based GRI Tires has extended its limited warranty coverage for pneumatic tyres to up to 10 years, effective from 2026, as the specialty tyre manufacturer seeks to strengthen customer assurance across its agricultural, construction and material handling businesses.

The revised warranty policy applies to all GRI-branded pneumatic tyres manufactured on or after January 1, 2025, and covers customers in more than 80 countries. The company previously offered warranty coverage of up to seven years.

Under the updated policy, agricultural radial tyres will be covered for up to 10 years, while agricultural bias tyres will receive coverage of up to eight years. Construction, earthmover, industrial, material handling, port and mining tyres will be covered for up to five years, subject to terms and conditions.

GRI said warranty protection would cover qualifying defects, with credit issued on a pro-rated basis.

For qualifying failures occurring within the first three years, and where radial tyre wear does not exceed 20 per cent, customers will receive a full replacement credit.

The warranty applies exclusively to the original end-use purchaser.

“This enhanced 10-year warranty is more than a policy update — it is a statement of our conviction in the quality of every tire we manufacture,” said Barry Guildford, global commercial director at GRI.

“We build tires to perform in the most demanding conditions, and we stand behind them.”

Customers can submit warranty claims through authorised GRI dealers and distributors, or directly through the company’s customer support channels.

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Georg Nordmann Holding Aktiengesellschaft (GNH) has appointed Martin Rathke as Managing Director of its subsidiary Nordmann (Nordmann, Rassmann GmbH), effective 1 May 2026. The move marks a strategic step in the company’s ongoing leadership development.

Rathke joins with considerable leadership experience and deep knowledge of international sales and distribution within the chemical distribution sector. His career includes years of service in a family-owned enterprise, where he held senior management roles with global responsibility. He will now share leadership duties with Ulrich Cramer, who remains in his position, and together they aim to form a closely aligned team to advance Nordmann’s strategic direction.

The joint leadership will focus on accelerating global expansion through targeted strategic, organic and inorganic growth while optimising existing operations and continuously refining the company’s portfolio strategy. Backed by the commitment of its shareholders, Nordmann seeks to strengthen its international presence and evolve into a global player in the chemical distribution industry.

Irina Zschaler, CEO of Georg Nordmann Holding Aktiengesellschaft, said, “Martin brings exactly the combination of entrepreneurial mindset, international experience and leadership strength that we value in our relationships and for our path to grow. Our collaboration is based on responsibility, integrity and the aspiration to create added value together for all involved and the entire group. We are therefore very much looking forward to welcoming our full Nordmann team.”

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Shandong Linglong Tire has submitted a proposal to the Egyptian government to develop an integrated automotive tyre manufacturing complex in Egypt with planned investments of about USD 2 Billion, according to a media report.

The project, as per Egypt Torday, would be developed under the private free zone system in partnership with Fit & Fix and focus on producing tyres for passenger vehicles and heavy-duty trucks.

Mohamed Farid, Egypt’s Minister Of Investment And Foreign Trade, held discussions with company representatives regarding the proposed development, which is planned for Borg El Arab across an area of up to 3m square metres, added the report.

According to the proposal, the project would also include supporting industries such as rubber and carbon black production. About 90 per cent of output is expected to be exported, primarily to the US and Gulf markets.

Farid said attracting investments that support technology transfer and strengthen domestic manufacturing capabilities remained a priority for the Egyptian government. He added that expanding industrial capacity in sectors such as automotive components and tire manufacturing was important for increasing the value of Egyptian exports.

The minister said the free zone system was designed to simplify investment procedures and strengthen Egypt’s competitiveness in attracting foreign direct investment for industrial projects. He added that the private free zone framework offered incentives and operational flexibility to support exports and access to global markets.

The company said total investments were expected to reach USD 2 billion across different phases of development, subject to regulatory approvals and licensing requirements.

Sophie Li said Egypt’s geographic position and trade agreements made it an attractive regional manufacturing and export hub.

She added that the company planned to establish a fully integrated industrial complex using advanced production technologies in partnership with Nile Trade and Projects Company, with a focus on technology transfer and local industrial development.

Li said the company would continue working with Egyptian authorities to complete approvals and move the project towards implementation.

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Yokohama ATG-owned Galaxy, a brand of tyres for construction, earthmoving and material handling, has entered the UTV and ATV segment with Hulk PSX and Everest PSX.

The company stated that the tyres are for use in the off-road segment and in utility applications, providing durability, life and traction across terrains. They are engineered to provide puncture resistance, stability and comfort for utility and recreational operations.

The Hulk PSX is for use off-road across terrains. It features a compound for tyre life and sidewalls for cut resistance. Radial construction is for performance, while shoulder blocks assist cornering and handling. It includes a tread design for traction and a tread-to-void ratio for wear resistance and stability. The model fits 12-inch and 14-inch rims to cater to UTV configurations.

On the other hand, the Everest PSX is suitable for utility applications, providing performance, durability and comfort. It offers resistance to cuts, chips and abrasions. Pattern continuity is for roadability and vibration reduction. The tyre provides traction and stability, including wet surface grip. It includes rim protection and puncture resistance for operations. The model is offered for 12-inch, 14-inch and 15-inch rims for UTV applications.

Dyutiman Chatterjee, Chief Technology Officer, Yokohama-ATG, said, “Building on its 100+ years legacy, Galaxy’s entry into the UTV/ATV category is a strategic step in strengthening its presence globally. These tyres are designed to meet the evolving needs of customers seeking performance, reliability and durability in extreme conditions.” 

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