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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Elkem ASA, a global leader in advanced silicon-based materials, has announced the appointment of Dag Teigland as its new Chief Executive Officer, effective 3 August 2026. The board’s decision coincides with the departure of Helge Aasen, who will step down after leading the company since 2009 to take on the role of Chairman of the Board.

Bringing more than two decades of industrial and investment expertise, Teigland currently serves as executive chairman of Tekna Holding ASA, a firm known for advanced metal powders. His career includes senior executive positions at Tinfos AS and Holta Invest AS, where he managed an active investment platform. Previously, he held multiple leadership roles at Elkem from 1998 to 2002, culminating as Managing Director for the chrome business area, providing him with direct familiarity with the company’s operations.

Marianne E Johnsen, Interim Chair of the Board of Elkem, said, “The Board is pleased to appoint Dag Teigland as CEO of Elkem. He brings deep industrial expertise and a proven track record of driving development and transformation. With his background spanning both international industrial operations and investment environments, Dag is well suited to lead Elkem into its next phase of growth and development.

“At the same time, the Board would like to thank Helge Aasen for his strong leadership and significant contribution to Elkem over many years. During his tenure, Elkem has strengthened its strategic position, expanded its global footprint and developed world-leading positions in silicon, ferrosilicon, foundry alloys and carbon solutions. Helge has also led Elkem through major portfolio and financing measures, including the divestment of the Silicones division. We are very pleased that he will continue to contribute to the company’s development as chairperson of the board.”

Teigland said, “It is a great honour to return to Elkem and take on the role of chief executive officer. Elkem is a company with a strong industrial heritage and a leading position within its respective segments. I look forward to working with the Board, the Elkem leadership team and colleagues worldwide to build on this foundation, accelerate sustainable growth, advance safety and innovation and ensure that Elkem continues to supply the strategic materials needed for a cleaner, smarter and more resilient future.”

Aasen said, “It has been a privilege to lead Elkem as CEO over the past 17 years. I am proud of what the organisation has accomplished during this period and confident that the company is well positioned for long-term, sustainable value creation. I look forward to continuing to support Elkem in my new role as chairperson of the board and to work closely with Dag in the transition.”

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German tier 1 supplier Continental has announced the sale of its ContiTech group sector to an affiliate of Lone Star Funds for EUR 4 billion. The transaction includes components of up to EUR 250 million dependent on performance.

Following the sale, Continental will sharpen its focus on tyre manufacturing. The transaction is expected to result in a cash inflow of approximately EUR 3.1 billion. Continental plans to use EUR 2.5 billion of these proceeds for a special dividend or a combination of a special dividend and share buybacks. Lone Star Funds will assume responsibility for all ContiTech business operations.

Sabrina Soussan, Chair of Continental’s Supervisory Board, said, “With the sale of ContiTech, the Supervisory Board approved the final step in Continental’s realignment. We are convinced that both companies will be better positioned to develop as independent businesses than as part of the same group. This strategic focus will make them both even stronger.”

Christian Kötz, CEO, Continental, said, “The sale of ContiTech not only marks the final step in our strategic realignment, but also the beginning of a new era as a pure-play tyre manufacturer. As announced, our shareholders will participate in the proceeds from the sale. We will also continue to improve our solid capital structure.”

Donald Quintin, CEO, Lone Star Funds, said, “ContiTech is a well-positioned industrial company with outstanding technological capabilities and extensive expertise in materials, making it one of the leading providers in its industries. We are convinced of ContiTech’s significant potential. As a global investor with a track record in the industrials sector, we look forward to working closely with the management team and employees around the world to further develop the business – through operational improvements and targeted investments in attractive growth markets.”

ContiTech reported sales of EUR 4.4 billion in the 2025 fiscal year and employs approximately 22,000 people. Its portfolio includes conveyor and drive systems, fluid management solutions, and damping and surface applications.

For Continental, the tyre business remains its core operation, supported by 19 tyre plants and 55,000 employees. Passenger-car tyre sales accounted for 77 percent of tyre revenue in 2025. The company’s realignment follows the spin-off of its Automotive sector in September 2025 and the sale of ContiTech’s Original Equipment Solutions business area in February 2026.

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European premium tyre brand Pirelli has acquired a 24.99 percent equity stake in RIDEsense, a start-up originating from the University of Naples Federico II and the MegaRide Group.

The agreement grants Pirelli a licence to use RIDEsense’s virtual sensor technology and includes an option for Pirelli to increase its holding to 100 percent of the company’s share capital.

The partnership aims to integrate Pirelli’s physical tyre sensors with RIDEsense’s virtual sensor algorithms. This integration is intended to expand the functionality of the Cyber Tyre ecosystem, particularly for ADAS and autonomous driving systems, by improving tyre and vehicle diagnostics and strengthening safety features such as aquaplaning detection.

The Pirelli Cyber Tyre system collects data from sensors embedded in tyres to transmit information to vehicle electronic systems in real time, supporting functions such as ABS, ESP and traction control. RIDEsense provides physics-based algorithms that model vehicle and tyre behaviour, available as software for electronic control units or as hardware through its Kymes platform.

Piero Misani, Chief Technical Officer, Pirelli, said, “More than 20 years ago, we embarked on the journey that led to the integration of data collection and transmission capabilities into tyres, giving rise to Cyber Tyre technology. Our agreement with RIDEsense will further expand the potential of this ecosystem by strengthening its software component, which lies at the very heart of Cyber Tyre.”

Flavio Farroni and Aleksandr Sakhnevych, Chief Executive Officers, RIDEsense, said, "This is a significant agreement for Italy. It brings together Italian research and industry to take a project that began more than ten years ago in Naples, within the Vehicle Dynamics Group at the University of Naples Federico II, and supported by the University's technology transfer structures, onto Pirelli's production lines. As mobility becomes increasingly connected, technologies capable of delivering greater safety, efficiency and driving quality are essential. This is the objective we share with Pirelli."

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The global tyre recycling sector currently navigates a volatile landscape where geo-political instability and logistical bottlenecks intersect with a surging demand for circular economy solutions. While conflict-driven shifts in raw material flows present procurement challenges, they simultaneously offer Indian recyclers a strategic opening to diversify sourcing from high-compliance markets like US and Europe. Despite rising operational costs, the industry’s pivot towards sustainable, high-quality outputs, supported by rigorous international certifications, remains a vital driver for India’s manufacturing and infrastructure resilience.

The global tyre recycling industry is currently witnessing a mix of disruption and opportunity, shaped by geo-political tensions, logistics constraints and evolving sustainability expectations. The ongoing conflict involving the Middle East, along with United States and Israel, is influencing raw material flows in a significant way.

“The Middle East is a big part where the raw material generation is quite high, which gives a better boost to the Indian industry with regards to the import of base tyres,” said General Manager for Cross Border Procurement and Supply Chain at Dashmesh Group, Vijay Rana.

At the same time, global metal availability remains high, creating a complex supply environment.

“So this is a very challenging time and we can say it is also an opportunity for Indian companies to explore new markets where they can secure more materials,” added Rana.

Key alternative sourcing regions include United States, Australia, Europe and United Kingdom, where scrap availability remains strong. However, these markets come with strict compliance requirements.

“In those countries, there are certain norms which have real importance to comply with. If the importer is compliant, then it is not a problem. In many cases, the importer is also the manufacturer and actual user of the raw material,” he explained.

Logistics continues to play a decisive role in the industry’s performance.

“Shipping lines and water transport contribute nearly 80 percent of import-export trade, while only about 20 percent depends on air freight,” said Rana.

Rising energy costs and geo-political uncertainties are driving up operational expenses.

“This is giving the cost on the higher side, which is making the Indian industry a little slow in giving its best contribution to the economy,” he noted.

STRONG CIRCULAR PUSH

Despite these pressures, tyre recycling remains a critical segment within India’s circular economy.

“This waste tyre recycling segment is a big segment in India, giving its best contribution to the circular economy,” Rana said.

The sector supports multiple product streams including rubber granules, tyre-derived oil and related outputs.

Certifications also play a vital role in accessing international markets, particularly in Europe. "In European countries, REACH compliance and certifications are very important because people give more importance to the environment as well as human safety,” he explained.

With required certifications in place, exports are not significantly constrained.

“We have all the certifications in hand, and based on that, we do not have any challenge exporting our products to those countries,” Rana added.

Dashmesh Group has built a strong legacy in the rubber recycling industry since its founding in 2005. From its beginnings as a tyre trader to the establishment of major facilities in Gujarat, the group has scaled its production capacity significantly. Today, it is one of the leaders in sustainable manufacturing, operating with a zero-waste philosophy and holding different certifications like ISO, ISCC, KVQA and UKCERT.

The group specialises in producing high-quality crumb rubber, reclaimed rubber, rubber mulch, rubber granules, tyre pyrolysis oil and recovered carbon black. These REACH-compliant materials serve as vital, cost-effective resources for various Indian industries.

DOMESTIC DEMAND AND EXPORTS

India continues to be a strong domestic market for recycled tyre products.

“Presently, we are giving 95 percent of our finished product to the local market. Only five percent is exported,” said Rana.

Exports are currently routed largely through channel partners with some direct customers as well.

“We are more focused on increasing volumes in the export market,” he noted.

Dashmesh Group serves a diverse portfolio of industries across India, positioning itself as a key supplier for specialised manufacturing and development sectors. A significant portion of their operations is dedicated to supporting tyre manufacturing companies, providing the essential materials or components required for large-scale automotive production.

Beyond the automotive sector, the group plays a vital role in the industrial handling market by catering to conveyor belt manufacturers. These partnerships are crucial for the production of heavy-duty belts used in mining, logistics and factory automation.

Furthermore, it is actively involved in the nation’s growth through its collaboration with road infrastructure companies. By supplying this sector, they contribute to the essential materials and logistical support needed for the construction and maintenance of India’s expanding highway and transit networks.

“In terms of distribution of finished products, approximately 40–50 percent goes to tyre industries, around 25 percent to conveyor belting and rubber component industries and the remaining 25 percent to road infrastructure,” Rana explained.

GROWING ECOSYSTEM

Dashmesh Group operates continuous pyrolysis systems and quality remains central to the company’s positioning.

“Since the beginning, we have been more focused on quality because we have a recycled product. When we give the best quality to our customers, we can maintain them,” Rana said.

He noted that India’s position as a global tyre manufacturing hub continues to strengthen, which eventually fares well for recyclers like them.

Additionally, India’s size contributes to sustained demand. “It is a wide country, so there is a huge requirement for tyres,” Rana noted.

Sustainability also remains central to operations. “Around the globe, tyre generation is high and we are completely aligned towards sustainability,” he said.

Operational scale reflects this commitment as the company processes approximately 20,000 tonnes of tyres in a month. This contributes to resource conservation.

The company’s sourcing model focuses on direct engagement with global collectors. “Our main target is to connect with actual tyre waste collectors and processors outside the country as this ensures visibility and long-term alignment,” said Rana

“It gives clear visibility to both importers and exporters regarding who is involved and what the future planning is,” he explained.

Collection networks are decentralised as they gather waste from small locations and collection yards within their respective countries.

EXPANSION STRATEGY

Dashmesh Group is aggressively expanding its physical footprint to establish a truly nationwide presence. According to Rana, the company is strategically positioning itself in all four corners of India to better serve its growing clientele.

Currently, the group operates key facilities in the Sarigam Industrial Area in Valsad, Gujarat, and the Wada Industrial Area in Palghar, Maharashtra. It also maintains a strategic presence near the Nhava Sheva port to streamline logistics and export operations.

The company is now focusing on the next phase of its growth by moving into the southern and eastern regions of the country.

New facilities are currently under construction in Chennai and Haldia, West Bengal.

Current production capacity stands at 19,000 to 20,000 tonnes per month across all products. The upcoming expansion will significantly increase scale, as with the two new plants, it will add 200–250 containers per month, which is around 6,000–6,500 tonnes.

Total capacity projection is estimated to reach between 25,000 to 26,000 tonnes per month.

While global expansion is part of the roadmap, the immediate focus remains India.

“We see a lot of opportunities within the country and want to capture them first before going outside,” said Rana.

Beyond operations, Dashmesh Group is focusing on awareness and education.

“We are educating overseas suppliers on how to make these products more usable in daily applications. This is critical given rising waste volumes,” he explained.

He added, “The waste tyres on the planet are increasing day by day, and this needs to be controlled. The goal is clear, which is to provide the best solution and best destination for these materials.”

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