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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Apollo Tyres plans to invest INR 35 billion in FY2026-27, with nearly 80 percent of the capital expenditure earmarked for growth and capacity expansion projects across India and Europe, as the tyre maker seeks to meet strong demand despite escalating raw material costs and geopolitical disruption.

Most of the planned investment will be directed towards expanding truck and passenger car tyre capacity in India, while the remainder will support passenger car tyre expansion at the company’s Hungary plant.

Apollo Tyres said capacity utilisation across both India and Europe had reached about 90 percent, with demand remaining strong in replacement and original equipment markets. The company added that April volumes had continued to show strong momentum despite recent price increases.

The company reported consolidated revenue of INR 73.4 billion for the fourth quarter, up more than 14 percent year on year, while earnings before interest, tax, depreciation and amortisation margin improved to 14.6 percent from 13 per cent a year earlier.

Revenue from Indian operations rose 14.3 percent to INR 52.4 billion during the quarter, supported by high-teen volume growth in both replacement and original equipment segments.

Neeraj Kanwar, Vice-Chairman And Managing Director, said geopolitical developments in West Asia continued to create uncertainty and volatility across raw material, energy and logistics costs.

The company expects raw material costs to rise by mid- to high-teens sequentially during the current quarter, led by a sharp increase in natural rubber prices. Apollo Tyres said natural rubber prices had risen to about INR 250 per kg from around INR 200 per kg during the fourth quarter.

To mitigate the pressure, Apollo Tyres has announced price increases of 6-8 percent across product categories in India during the current quarter and indicated that further increases may be necessary.

Gaurav Kumar, Chief Financial Officer, said the inflationary environment remained highly volatile.

“Mid to high teens is the current reality,” Kumar said. “We’ve taken about half the price increase that is needed.”

The company said it was also implementing cost-control measures across operations, including reductions in discretionary spending, as it sought to protect margins from higher commodity and logistics costs.

Apollo Tyres continues to restructure its European manufacturing operations as part of efforts to improve profitability. The company said the closure of its Enschede plant in the Netherlands remained on schedule, with production expected to cease by June 30.

Management said the decision was driven by persistently weak European market conditions, elevated energy costs and unusually high wage inflation in western Europe.

Apollo Tyres has taken a non-cash write-off of EUR 43 million related to the plant closure and expects total restructuring-related cash outflow, including social plan payments and legal costs, to exceed EUR 55m.

The company said the restructuring should begin improving European margins during the second half of FY2026-27 as production shifts towards lower-cost facilities in Hungary and India.

Apollo Tyres added that India and Europe would remain priority markets for future capacity allocation decisions, although export demand in some overseas markets had softened amid broader macroeconomic uncertainty.

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Linglong Tire has appointed Pradeep Karat as Sales Director OTR for the Middle East and Africa (MEA) region, effective from the beginning of May 2026.

Karat will oversee strategy and sales for the company’s specialty tyres division across the MEA region and report to Jeffrey Hughes, director EMEA. He will work with product and marketing teams to expand the group’s presence in the off-the-road (OTR) tyre segment, develop strategic partnerships and support growth in new markets.

Before joining Linglong, Karat worked at Hankook Tire, where he most recently served as senior manager for truck tyre sales in the Middle East and Africa.

Over a career spanning more than 30 years, he has held sales and marketing management roles at tyre manufacturers including Bridgestone, Goodyear and Continental.

“I am very pleased to be part of the Linglong team with immediate effect and to start as Linglong Sales Director Middle East Africa. I will do everything I can to use my experience and expertise to successfully advance Linglong in the MEA region,” said Karat.

Linglong said Karat would focus on strengthening the company’s position in India and key African markets. He will also work closely with Sherif Degheidy, who joined the company in February.

“I have worked with Pradeep in the Middle East in the past and am very pleased that he is now joining Linglong to help us continue to grow our off-highway business,” Hughes said.

“He brings extensive knowledge of the region, knows how to find new distributors and build strong partnerships. Pradeep will seek to expand Linglong's presence in India as well as in key African markets.”

Karat holds a master’s degree in marketing and economics and speaks Arabic, Hindi, Tamil and Malayalam, in addition to English. He will be based in Dubai.

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CAMSO Construction has announced the appointment of Stefan Bartella as Area Sales Manager for the DACH region. Bartella brings solid sales experience and a deep understanding of regional market dynamics to the role. Company officials stated that his expertise will support the organisation’s continued growth in the area. The appointment reflects CAMSO Construction’s commitment to strengthening its commercial team in Germany, Austria and Switzerland. Bartella’s knowledge of local customer needs and market trends is expected to drive further business development and reinforce the company’s position across the DACH territories.

The company statement read: “We’re pleased to welcome Stefan Bartella to CAMSO Construction as Area Sales Manager for the DACH region. With solid experience in sales and a strong understanding of regional market dynamics, he brings valuable expertise that will support our continued growth. Welcome aboard, Stefan!”

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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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