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.

India’s recycling industry is becoming more technology-driven, formalised and commercially sophisticated, but women remain underrepresented across its operational and technical functions. GRP Ltd Executive Director Hemal Gandhi believes a new generation, increasingly exposed to sustainability and circular-economy thinking, could begin changing that equation. Recently appointed as Chairperson of Material Recycling Association of India’s Women in Recycling Committee, Gandhi is pushing for greater participation, capability building and visibility as the sector moves beyond conventional waste processing towards advanced resource recovery and sustainable-material manufacturing.

A new generation of professionals exposed to sustainability and circular-economy principles will drive greater participation of women in India’s recycling industry, according to GRP Ltd Executive Director Hemal Gandhi, who was recently appointed Chairperson of the Women in Recycling Committee at the Material Recycling Association of India (MRAI).

Gandhi acknowledged that women’s representation across the recycling industry remains limited, particularly outside conventional support functions. However, she sees an opportunity for this to change as second-generation members of recycling businesses enter the sector and younger professionals increasingly encounter sustainability and circularity through universities and education.

“A lot of the second generation has come into the business,” Gandhi told Tyre Trends, adding that the newer generation is more receptive to entering recycling because it increasingly understands the industry’s broader environmental purpose.

For Gandhi, the immediate priorities for increasing women’s involvement are participation, capability building and visibility.

She wants participation to extend beyond corporate and leadership positions into technology, operations, engineering, research and development, entrepreneurship and commercial functions.

“I’d like to encourage greater participation of women across the recycling value chain,” Gandhi said.

She added that stronger platforms for knowledge sharing and mentoring are needed, with mentor circles among the mechanisms being considered to engage a wider audience.

Visibility represents the third element as she wants greater recognition of women already contributing to recycling while strengthening connections between established industry leaders and the next generation.

The broader objective, she said, is to make recycling a more inclusive, professional and future-oriented industry and ensure women have a meaningful role in determining its next phase of growth.

“Women bring extraordinary attention to detail, discipline, resilience and an ability to see both the task and the people around it. But I don’t want women to be valued only for these qualities. I want them at the table, making the big decisions,” noted a confident Gandhi.

GRP’s own experience illustrates some of the barriers. Gandhi said women joining the company’s Sholapur operations were initially concentrated in support functions including administration and human resources.

Changing that required what she described as a ‘mindset shift’ within GRP itself. The company has since expanded their presence into manufacturing.

“We are pros at multi-tasking and know how to get the job done. We’ve successfully represented plenty of industries before and now it’s recycling’s turn to take centre stage,” she said.

Women’s representation at GRP varies across locations based on the job requirement and talent availability. The head office has the largest women participation of 28.57 percent. The reclaim rubber and Pyrova business combined contribute to about 13.30 percent with substantial women participation on shopfloor at all shifts.

The plants in Solapur and Ankleshwar show 19.32 percent and 17.81 percent, respectively, which are far higher than the industry average of 10–11 percent.

The focus is to create opportunities of women participation in the plastics business as well.

BROADENING BASE

The push for broader participation comes as India’s tyre-recycling ecosystem itself undergoes significant change.

Gandhi said tyre recycling now has strong representation within MRAI with participation increasing across the value chain. The ecosystem has expanded beyond conventional scrap processing to include collection, aggregation, mechanical recycling, crumb rubber, reclaim rubber, pyrolysis, devulcanisation, retreading technologies and downstream users.

MRAI’s tyre-focused sessions and programmes have also seen increased participation, according to Gandhi. She sees the association’s role extending beyond industry representation to providing a platform where stakeholders can engage on policy, standards, technology and development of end markets.

The next opportunity, she said, is to deepen representation across the tyre-recycling value chain.

Gandhi described India’s tyre-recycling industry as being at an inflection point with Extended Producer Responsibility emerging as a significant catalyst.

The waste-tyre framework has brought greater attention to end-of-life tyres, encouraged formal recycling channels and provided recyclers with a more structured position within the tyre ecosystem.

More companies entering the sector demonstrate growing interest, but Gandhi cautioned that regulation and creation of recycling capacity represent only the beginning.

“The next phase needs to concentrate on quality, traceability, responsible processing and end markets,” she said, adding, “Industry should not measure success only by how many tonnes of tyres are processed.”

Instead, the sector needs to examine how much material value is recovered from every tyre, the quality of those recovered materials and whether they ultimately enter higher-value applications.

She described EPR as a game changer that has established the framework, while the next challenge is developing a more transparent, technology-driven and circular system around it.

COLLABORATION OVER CONSOLIDATION

India’s tyre-recycling industry has historically been fragmented, though Gandhi believes it is gradually becoming more organised as regulations, technology and market requirements become clearer.

She drew a distinction between consolidation and collaboration.

“Companies operating in collection, dismantling, shredding, pyrolysis and retreading can have significantly different levels of technology and formalisation. The objective should therefore not simply be reducing the number of companies,” she argued.

Instead, India needs a more organised ecosystem with common expectations around compliance, traceability, quality, technology and responsible processing.

More clearly defined standards and EPR requirements will increasingly differentiate companies investing in quality systems and sustainable operations, she said.

Comparing India with more established recycling economies, 126 T Y R E T R E N D S | O C T O B E R / N O V E M B E R 2 0 2 6

Gandhi said the country has several advantages including a large domestic tyre market, substantial availability of end-of-life tyres, rubber-processing capabilities and an increasingly structured policy framework.

There is, however, no single international recycling model India can simply replicate because individual markets have developed around different collection systems, regulations and economics.

The common global direction is towards higher-value material recovery.

Products such as reclaim rubber and recovered carbon black are increasingly being developed as industrial raw materials rather than merely waste-derived outputs.

India is moving in the same direction, Gandhi said, with domestic recyclers already producing such materials and supplying to international markets.

“The opportunity is to combine India’s scale, manufacturing capabilities and entrepreneurial base with global best practices,” she noted.

EXPANDING CAPACITY

GRP, meanwhile, is positioning its recycling operations around recovering greater value from waste materials and developing applications capable of substituting virgin resources.

The company currently operates across five strategic locations and eight manufacturing units with installed capacity of approximately 122,000 tonnes per annum, according to Gandhi.

Its next step into end-of-life tyre recovery is being pursued through Pyrova Energy.

At Sholapur, GRP has commissioned a 15,000-tonne-per-annum continuous tyre pyrolysis reactor alongside an integrated crumb-rubber facility. The next phase includes expanding pyrolysis capacity to 45,000 tonnes per annum and developing recovered carbon black capacity.

The broader objective is to recover the different components of an end-of-life tyre while progressively improving the quality and value of each material stream.

Gandhi also highlighted GRP’s wider sustainability performance. She said the company reduced Scope 4 emissions by 55 percent, while the share of its energy requirements met through renewable sources increased to 48 percent from 37 percent in the previous year.

GRP has also received an EcoVadis Gold rating and published a comprehensive sustainability report covering initiatives across the organisation. It has also been recognised as a 2026 Avtar & Seramount ‘Best Company for ESG’, acknowledging its commitment to responsible business, transparency and accountability.

The direction, Gandhi said, is to recover more from every tyre, improve material quality and create additional applications for those recovered materials.

GAINING GROUND

Interest in recycled and renewable materials is increasing, although Gandhi said recycled content varies significantly depending on the material, application and performance requirements.

For reclaim rubber, she cited Rubber Board data showing domestic consumption of almost 167,500 tonnes in 2024-25, including about 67,000 tonnes consumed by automotive tyre manufacturers.

GRP supplies reclaim rubber to major tyre manufacturers globally, Gandhi said, adding that eight of the world’s top 10 tyre manufacturers are its customers.

She noted that recyclers and tyre companies need to work together from the product-development stage, developing materials and testing capabilities for specific applications and establishing appropriate quality and performance parameters.

Sustainability targets will translate into meaningful virgin-material substitution only when recycled alternatives meet requirements around quality, safety, consistency and economics, she added.

Despite India’s sizeable tyre-recycling ecosystem, Gandhi said a significant proportion of the industry continues to serve relatively lower-value applications.

“The next opportunity is to retain more of the material value contained within an end-of-life tyre by developing markets for high-quality reclaim rubber, recovered carbon black, pyrolysis products and engineered tyre-derived materials,” she noted.

Achieving that transition will require recyclers and downstream industries to collaborate on qualification, testing and application development.

Gandhi also argued that comparisons between virgin and recycled materials should move beyond price.

“Cost needs to be considered alongside performance, consistency, carbon footprint and supply security. Recyclers, meanwhile, will need to invest in process control, research and development and testing to improve performance, while scale, automation and energy efficiency will be critical to improving costs,” she contended.

NEXT PHASE

Greater standardisation and quality benchmarks will be among the most important enablers of the industry’s next stage, Gandhi said.

Tyre manufacturers and other industrial customers need confidence that recycled material purchased today will meet the same critical parameters when supplied months later.

This places increasing importance on testing protocols, traceability and credible certification.

Gandhi said standards should nevertheless avoid becoming barriers to innovation. Instead, they should be performance-based, allowing new technologies and materials to develop while providing customers with confidence around consistency and safety.

She sees MRAI as potentially playing a constructive role by bringing recyclers, tyre manufacturers, standards bodies, technical institutions and policymakers together.

GRP’s immediate priorities include scaling its next-generation reclaim-rubber business, ramping up the Pyrova Energy platform, commissioning recovered carbon black capacity and investing further in innovation and research and development to develop higher-value products and applications.

But Gandhi said her ambitions extend beyond the company.

Through her role with the Women in Recycling Committee, she wants to increase women’s participation particularly in leadership, technology and technical functions.

“The next generation of women in recycling should not just be entering the industry but shaping its technology, factories, businesses and future,” contended Gandhi.

Her message to young and aspiring women was not to make themselves smaller to fit the room but to prepare well, do the work, speak up and take their place.

That objective intersects with Gandhi’s broader view of where the Indian recycling industry is heading.

“India has an opportunity to progress from waste management towards resource recovery and sustainable-material manufacturing. Combining stronger regulation and standards with responsible manufacturing could help develop a globally competitive circular-materials industry,” she said.

For women entering the sector, that transformation could simultaneously broaden the types of careers available.

As recycling becomes more technical, formalised and closely integrated with manufacturing, Gandhi believes the new generation’s familiarity with sustainability and circularity could help accelerate that shift.

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.”