For Continental Tires India, the passenger vehicle market in India is entering a phase where scale and structure are finally aligning with its longstanding premium ambitions. Passenger vehicle sales reached a record 4.3 million units in 2024, expanding by 4–5 percent year on year, but it is the composition of that growth – rather than the headline volume – that is reshaping the company’s strategy. Utility vehicles now account for approximately 58 percent of total passenger vehicle sales, up sharply from about 51 percent the previous year, cementing SUVs and crossovers as the dominant force in the market.

This structural shift has direct consequences for tyre manufacturers operating at the upper end of the value spectrum. Larger vehicles bring higher kerb weights, bigger wheel diameters and greater expectations around refinement, safety and performance. For Continental, the change represents not merely an increase in addressable demand but a decisive move towards tyre categories where technology differentiation and pricing discipline can coexist.

Samir Gupta, Managing Director of Continental Tires India, calls this phase a turning point, not a temporary high. He says the surge in utility vehicles – driven by electrification and more premium cars – fundamentally changes the economics of the passenger tyre market in India.

“Let me clarify one thing first. The utility vehicle segment is no longer small. Last year, around 60 percent of passenger vehicles sold in India were utility vehicles, and including first-time buyers upgrading within this segment, the share goes beyond 65 percent,” Gupta says.

Industry data broadly supports this assessment. SUVs alone contributed close to three-fifths of all passenger vehicle sales in 2024, with compact utility vehicles accounting for a significant share of incremental volumes. The overall passenger vehicle market, at around 4.3 million units, has thus become structurally skewed towards larger formats – an inflection with long-term implications for tyre sizing, load ratings and product mix.

This shift shows in replacement demand. As vehicle footprints grow, rim diameters are increasing. “The market is clearly moving from smaller to bigger rim sizes. Demand for 17-inch and above tyres is rising sharply,” Gupta says. While these tyres are still a minority, their growth far outpaces the overall passenger tyre market.

Electrification is accelerating the shift. A substantial proportion of electric passenger vehicles sold in India today are SUVs, and Continental expects EVs to account for more than 50 percent of the passenger vehicle segment within five years. For tyre manufacturers, this creates new technical requirements – higher torque tolerance, lower rolling resistance and stringent noise control. “That creates a significant opportunity for us because our strengths lie in premium, high-performance tyres,” Gupta says.

Despite these favourable structural trends, premium tyres have historically struggled to gain traction in India. For much of the past decade, the market remained intensely price-sensitive, with tyres treated largely as commoditised replacement items. Continental’s response, Gupta explains, has been consistent rather than tactical pricing. “Right from the beginning, we have focused on fair pricing. The idea is simple – if we can clearly differentiate on performance and consistently deliver on those promises, price recovery will follow,” he explains.

The broader environment is now becoming more supportive. As vehicle prices rise and consumers migrate towards larger, more sophisticated vehicles, willingness to spend on tyres that enhance safety, comfort and driving confidence is increasing. This trend is also evident at the top end of the market. Premium and luxury passenger vehicle sales reached approximately 51,500 units in 2024, up around 6 percent year on year and crossing the 50,000-unit threshold for the first time – a symbolic marker of premium consumption in India.

Gupta sees premiumisation extending beyond luxury vehicles. “Earlier, India was extremely price-sensitive, but that is changing in higher segments. Consumers are upgrading vehicles and are more willing to invest in tyres that enhance safety, comfort and confidence,” he says.

The intensification of competition, with global premium tyre brands expanding or re-entering India, is viewed as a positive development. “Competition is always good,” Gupta says. “It gives you room to grow and improve.” More importantly, he believes it will help reframe the market. “More premium players will help move the market away from being purely cost-driven to being value-driven,” he adds.

Replacement market dynamics reinforce this view. Of the roughly 32–33 million passenger tyres replaced annually in India, tyres sized 17 inches and above account for about 12–13 percent. While the overall replacement market grows at 5–6 percent per year, this high-diameter segment is expanding at over 20 percent annually, closely tracking the shift in new vehicle sales.

This sharper focus on passenger tyres also explains Continental’s decision to exit the truck and bus radial segment in India. Gupta stresses that the decision was strategic rather than operational. Continental entered the TBR market in 2014, invested significantly and received strong feedback on product performance.

However, the economics proved limiting. Gupta says, “TBR in India is largely a B2B, fit-for-purpose market. Even if you have the best tyre, willingness to pay remains limited because fleet operators are under constant margin pressure.” Although commercial tyres offer higher absolute margins per unit, they consume substantially more raw material. “One commercial tyre uses six to eight times the raw material of a car tyre. Percentage margins are actually higher in passenger tyres,” Gupta explains.

After reviewing its portfolio, Continental chose focus over breadth. Exiting TBR allows the company to concentrate capital, technology and management attention on passenger and light truck tyres, where differentiation is more readily monetised. Gupta rejects the idea that a narrower portfolio weakens the company’s position. Commercial and passenger tyre customers, he argues, are fundamentally different – one driven by procurement economics, the other by consumer perception and emotion.

Indian consumers, Gupta believes, are becoming more tyre-aware. “Premiumisation is happening across the vehicle industry, not just in tyres. As consumers move to larger and more premium cars, their expectations also rise,” he says. Where tyres were once treated as an afterthought, buyers increasingly recognise their role in braking, grip, noise and overall driving confidence.

This change is evident at the retail level. Continental now operates more than 200 brand stores across India, and feedback from retail partners suggests customers are more informed and more demanding. Availability remains critical. “There is no point launching premium tyres if customers cannot find them,” Gupta says.

To support future demand, Continental is investing around INR 1 billion at its Modipuram plant, with the focus squarely on passenger and light truck tyres. The expansion will extend manufacturing capability from the current 20-inch limit to 22–23 inches, aligning local production with emerging vehicle trends.

Localisation, Gupta argues, is about adaptation rather than compromise. Indian road conditions, climate and driving habits require specific tuning without diluting global performance standards. Education and availability remain the principal challenges.

The recent launch of the CrossContact A/T² in India reflects this strategy. Introduced during Continental’s Track Day at Dot Goa 4x4, the product positions India among the early global markets for the tyre. “The first thing you notice is noise – or the lack of it,” Gupta says. “You hear the air-conditioning, not the tyre.” Ride comfort, grip and consistency across terrains define its appeal. As Gupta puts it, “Jahan tak soch jaati hai, wahan tak yeh tyre kaam karta hai.”

Looking ahead, Continental remains largely insulated from shifts in original equipment strategies, such as the gradual removal of spare tyres. Improved carcass design and stronger sidewalls are reducing puncture risk, but the company’s primary focus remains the replacement market.

For Gupta, the question is no longer whether India is ready for premium tyres, but how effectively manufacturers execute. “The market is finally ready for premium tyres,” he concludes. With passenger vehicle sales at record levels, SUVs firmly dominant and premium consumption expanding, Continental believes it is well positioned to grow alongside India’s evolving mobility landscape.

Comments (0)

ADD COMMENT

Link Copied!

Giti Tire has secured the EcoVadis Platinum Medal for the second consecutive year, positioning it within the top one percent of companies globally evaluated for sustainability. This ongoing distinction underscores the organisation's dedication to ethical operations, environmental stewardship and the generation of sustainable value throughout its worldwide activities.

The EcoVadis framework appraisals in four principal domains: environmental impact, labour and human rights, ethical conduct and sustainable procurement. This methodology offers a thorough benchmark for corporate sustainability. Earning Platinum recognition for two straight years indicates that Giti's environmental, social and governance efforts are not only effective but are also demonstrating ongoing enhancement.

Complementing this accolade, Giti’s manufacturing sites in Anhui and Fujian, China, recently secured ISCC+ certification. This dual achievement illustrates the company's holistic sustainability strategy. This approach encompasses corporate governance and operational excellence while also ensuring the responsible procurement of materials essential for developing next-generation tyres.

As the worldwide mobility industry moves towards more environmentally friendly solutions, Giti is persistently investing in advancements aimed at minimising ecological impact, all without compromising the safety, durability and performance expected by consumers. These milestones reinforce Giti's goal to emerge as a prominent contributor to sustainable mobility within the international tyre sector, offering conscientious products and methods that support its customers, collaborators and communities.

Francois Petiot, Director, International QA Centre, said, “Reaching the top is difficult – but staying at the top of the mountain is even harder. This achievement shows not only our commitment to sustainability, responsible business practices and continuous improvement but also the dedication and teamwork of everyone involved.”

Comments (0)

ADD COMMENT

Link Copied!

Agricultural machinery specialist Emyr Evans marked four decades in business by restoring the first new tractor it ever sold. The Massey Ferguson 3065, originally purchased in late December 1995 for New Year delivery, has been beautifully brought back to life. It now rides on the latest MICHELIN AgriBib 2 tyres, supplied and fitted by Saracens, a trusted partner and part of the Michelin Quality Centre network. The tyres fitted are 340/85 R24 on the front and 420/85 R34 on the rear.

Emyr Evans founded the company with his wife Gwenda in 1986, starting with used tractors before becoming a Massey Ferguson dealer for Anglesey and Gwynedd in 1996 from their base in Gaerwen. By 2002, their territory had expanded to cover all of North Wales to the Cheshire border, prompting the opening of a second depot in Denbigh. Over the years, the business has grown by adding major franchises including JCB, Fendt, McHale, Pottinger and Bailey. Today, their sons Gwynedd and Berwyn manage the two depots.

The restored tractor is a significant piece of the company’s history, representing the last of Massey Ferguson’s 3000 series of versatile mid-range tractors. It was originally sold to a farmer in Anglesey and had worked there ever since. Despite its coastal location near the Irish Sea, it remained in working order but required dedicated care and attention.

The choice of modern Michelin tyres highlights the evolution in agricultural technology. The current AgriBib 2, with its improved tread pattern featuring 45-degree lugs, offers enhanced traction, durability and a higher load index to cope with the increasing weight of modern machinery. Comparing it to the Bib’X M18 from the 1990s illustrates this progress. For example, a 16.9 R34 Bib’X M18 carried a maximum load of 2,060 kg at 40 kmph, while the equivalent AgriBib 2 now carries 3,075 kg, an increase of over a tonne per tyre.

The restored Massey Ferguson 3065 is being showcased along with a collection of vintage tractors at the company’s 40th Anniversary Open Days (11 and 12 March) at their Denbigh depot on the Colomendy Industrial Estate.

Berwyn Evans, Director at the business, said, “The tractor was sold to a farmer in Anglesey and has been working there ever since. Due to the location by the Irish Sea, it needed some TLC but was still in working order. As the tractor is now 30 years old, it’s been a challenge tracking down replacement parts but a worthwhile one. When it came to fitting new tyres to this special tractor, the only choice was Michelin, which is king in the agricultural world.”

Comments (0)

ADD COMMENT

Link Copied!

Bridgestone Central Europe has announced leadership changes effective 1 March 2026, with Francesco Landolfo stepping into the role of Business Unit Director Commercial CER. He will oversee operations across Germany, Austria, Switzerland, Denmark, Finland, Norway and Sweden.

Landolfo takes over from Christoph Frost, who guided the commercial division for eight years and was instrumental in embedding the company’s premium approach throughout the region. Frost transitions to a new capacity as Director of Retread Business for Bridgestone EMEA, where he will manage the Bandag retreading enterprise across Europe.

Christoph Frost, Director Retread Business Bridgestone EMEA.

Waqqas Ahmad, Vice President Commercial Europe, highlighted that these moves are vital for advancing the premium strategy in Central Europe and within the retread sector. He noted that both individuals possess the necessary expertise and forward-thinking mindset to deepen client connections and reinforce the brand’s upmarket standing

Comments (0)

ADD COMMENT

Link Copied!

Omni United has announced the appointment of Dr Mika Lahtinen as Associate Vice-President for Raw Materials and Compounding. The appointment is intended to internalise expert-led design and performance for the rubber compounds used in the company’s flagship brand, Radar Tires.

Dr Lahtinen joins the Singapore-headquartered firm with over 20 years of experience in tyre material innovation. He previously led material development at Nokian Tyres and managed global technology for tyre oils at Nynas, operating across Finland, Sweden and Singapore.

He holds a PhD in Polymer Materials Technology, and at Omni United, he will be involved in the development of materials and compounds, as well as collaboration with global suppliers to advance the company's tyre technology.

The move is designed to provide the manufacturer with direct control over the chemical engineering of its products. Omni United, founded in 2003, markets a range of consumer and commercial tyres under brands including Radar Tires, Patriot Tires and RoadLux.

Omni United sells products in more than 50 countries. Its primary brand, Radar Tires, has been manufactured as a carbon-neutral product since 2013. The integration of in-house compounding expertise is expected to support the company's commitment to innovation and logistics solutions within the global automotive sector.

In an statement the company stated, ‘Bringing Mika’s expertise in-house is a strong addition to our team. It allows us to take a more direct, expert-led approach to the design and performance of Radar Tires’ rubber compounds. With over 20 years in tyre material innovation, Mika has an extensive background in developing breakthrough materials, developing cutting-edge compounds, and collaborating with global suppliers to advance tyre technology.’

Comments (0)

ADD COMMENT

Link Copied!