Retread tyres in Malaysia are unfairly blamed for road accidents. While the tyres enjoy a pristine reputation in export markets, the notoriety within the local market stems from the lack of ability to differentiate them from low-cost and low-quality tyres that fail to comply with performance standards owing to overloading, maintenance and misapplication.

A total of 1.35 million lives are lost each year in road accidents, according to data from the Ministry of Transport Malaysia. Another data set from Statista highlighted that the South Asian country witnessed 545,000 road accidents in 2022, an increase from the previous year data of 370,000.

A large portion of these accidents involve commercial vehicles and the blame is also shared by retread tyres. A recent news report highlighted rising concerns within the Malaysian parliament to ban the use of retread tyres of commercial vehicles citing safety norms.

The situation seems ironic as the Malaysian retread industry enjoys a pristine reputation in export markets. Yet, the notoriety of retread tyres on home turf might be seen as ‘collateral damage’.

Speaking to Tyre Trends exclusively on why retread tyres remain a scapegoat for road accidents, Tyre Retreading Manufacturers Association of Malaysia (TRMAM) President Edmund Wong said, “Retread tyres are often unfairly blamed for road accidents because the public struggles to differentiate them from low-cost, low-quality tyres that fail due to poor maintenance, overloading and misapplication. Many people mistakenly associate tyre debris, especially when it reveals exposed steel cords, with retreads. However, this type of failure is more commonly linked to cheap, substandard tyres rather than retreads, which, when properly maintained and used correctly, can be as safe as new tyres. The focus on retreads allows the real issues such as inadequate tyres maintenance and overloading to remain overlooked.”

IMPROVING ROAD SAFETY

Malaysia has a higher road fatality rate compared to ASEAN peers like Singapore, largely due to motorcycle-related deaths, which make up over 65 percent of fatalities.

Malaysia’s road safety goals have reportedly fallen short despite setting out clear targets. In 2014, the government aspired to reduce road fatalities by 50 percent by 2020 as part of its alignment with United Nations’ Decade of Action for Road Safety 2011-2020. The initiative was a failure and the same target was reiterated in Malaysia Road Safety Plan 2022-2030.

Current figures also raise questions over the supposed success of the target. Commenting on ways that could make the reduction target a reality, Wong noted, “To reduce road fatalities by 50 percent by 2030, Malaysia should enforce traffic laws strictly, including penalties for speeding and disobeying traffic lights, while expanding automated systems like speed and red-light cameras. Enhancing road infrastructure with safety audits, smart technology and dedicated motorcycle lanes is essential.”

“Malaysia can adopt best practices, such as dedicated motorcycle lanes, public education campaigns and improved road infrastructure, while learning from Singapore’s success in enforcement, infrastructure and safety culture. Public awareness campaigns should target risky behaviours including running red lights and promote defensive driving. Protecting vulnerable road users, especially motorcyclists and pedestrians, through improved infrastructure and safety regulations is also crucial,” he added.

Alluding to why stringent safety campaigns or regulatory measures are not undertaken to reduce motorbike fatalities, he noted, “The lack of stringent safety campaigns or regulatory measures targeting motorbike users in Malaysia is due to several factors. Firstly, motorbikes are a vital mode of transport for many due to affordability and accessibility, especially in rural areas, making stricter regulations politically sensitive. Secondly, enforcement of existing laws such as helmet use and licensing is inconsistent, particularly in rural regions, allowing unsafe practices to persist. Thirdly, cultural factors like risk-taking behaviour, resistance to change and low awareness of safety risks hinder the adoption of safer practices. Lastly, limited resources, both financial and infrastructural, result in insufficient investment in targeted campaigns and dedicated motorcycle lanes, leaving riders vulnerable.”

CLOSING GAPS

Wong iterated that to improve road safety and support the retreading industry in Malaysia, several regulatory gaps and enforcement lapses need to be addressed. One significant issue is the inconsistent enforcement of tyre standards, especially for imported new tyres.

While Malaysia requires that imported tyres have certifications like the E-mark, DOT or MS, these standards can sometimes fail to verify the genuineness and reliability of the tyres, leading to concerns about the quality and safety of some imports. This lack of stringent checks on tyres authenticity puts road users at risk and undermines confidence in tyre safety.

Additionally, there is a gap in regulations requiring regular tyre maintenance checks, particularly for retread tyres. Without mandatory inspections for tread depth, pressure and overall tyre condition, vehicles, especially commercial fleets, are at higher risk of tyre-related accidents.

Another issue is the weak enforcement of penalties for overloading and the misapplication of tyres such as using retreads in unsuitable conditions. Overloading vehicles puts excessive stress on tyres, increasing the likelihood of tyre failure, and stricter penalties are needed to deter this dangerous practice.

There is limited education on the benefits of retreads and how to use them safely, which affects their acceptance and proper usage. Implementing campaigns that highlight the safety, environmental and economic benefits of retreads could help improve perceptions and encourage safer practices.

Moreover, government procurement policies should prioritise retread tyres for public transportation fleets, encouraging their use across sectors and providing a market boost to the retreading industry.

Lastly, there is a lack of clear regulations on tyre end-of-life management including guidelines for recycling and disposal. Establishing clear regulations for the responsible management of worn-out tyre, including retreads, would support the circular economy and further promote the sustainability of the retreading industry.

Addressing these regulatory gaps and enforcement lapses would not only improve road safety but also foster the growth of a reliable, safe and sustainable retreading industry in Malaysia.

REPUTATION REVIVAL

The shadow of malignance over the local retread industry is daunting, especially considering its stellar reputation abroad. A methodical plan is urgently needed to change the prevailing perception.

Commenting on how the industry can leverage its foreign reputation to promote retreads domestically, Wong explained, “Malaysia can leverage its reputation in the global retreading industry to promote retreads domestically by focusing on education, policy support and sustainability initiatives.”

“Firstly, educating the public about the benefits of retreads, such as safety, environmental advantages and cost-effectiveness, can shift perceptions. Secondly, incentivising businesses to adopt retread tyres would not only increase its usage but also align with sustainability practices. Retreads significantly reduce waste by reusing tyre casings, contributing to lower carbon footprints and less landfill waste. Offering tax breaks, rebates or financial incentives to businesses that adopt retreads can encourage the adoption of this eco-friendly practice, benefiting both companies and the environment,” he added.

He also noted that Malaysia has a well-established certification system with Malaysian Standard 224 (MS 224), which sets high-quality standards for retread tyres. This national standard ensures that domestically produced retreads meet rigorous safety and quality requirements, reinforcing consumer confidence and helping local manufacturers maintain global competitiveness. By promoting this certification and its benefits, Malaysia can further build trust in its retreading industry and drive domestic demand for high-quality retreads.

He also noted that partnerships with universities, research institutions and organisations such as the Malaysian Rubber Board (MRB) could play a pivotal role in establishing Malaysia as a hub for innovation in tyre retreading. These collaborations would enable research and development focused on improving the quality, safety and efficiency of retread tyre, which could enhance their appeal domestically and internationally.

“The Malaysian Rubber Board has extensive expertise in rubber technology and the development of new rubber compounds, which are crucial for retreading. By working with these organisations, Malaysia could explore advanced rubber materials and improve the durability and performance of retread tyres. MRB’s research could focus on optimising the rubber used in tyre retreading, enhancing its resilience and performance under various road conditions, thus improving the overall safety of retreads. Universities and research institutions bring additional expertise in materials science, engineering and sustainability and can help address any technical gaps in the retreading process. They could collaborate with retreading companies, fleet operators and tyre manufacturers to develop new retreading technologies, better tyre monitoring systems and more efficient processes,” explained Wong.

He added, “These partnerships could also produce credible, science-backed data on the reliability and safety of retread tyre, helping to build public trust and dispel misconceptions about retreads.”

FILLING DATA GAPS

The lack of local data to validate the reliability and safety of both retread and new tyres in Malaysia stems from several key factors, according to Wong.

“Primarily, there is a significant gap in research due to the lack of collaboration between tyre manufacturers, retreaders, fleet operators, research institutions and government agencies. Without cooperation among these stakeholders, there is little incentive or infrastructure to collect and analyse tyre failure data in the local context. This leads to a situation where tyre failure research is outdated or non-existent, leaving the industry to rely on studies from other countries such as US, which may be many years old and not reflective of current tyre technology or local conditions,” noted Wong.

He added, “This problem is not unique to Malaysia; many countries face similar challenges in gathering and sharing tyre-related data. For example, tyre debris reports and studies on tyre failures tend to be infrequent and may not accurately capture the complexities of modern tyre usage, road conditions or fleet operations. To address this gap, a collaborative effort among different stakeholders, both local and international, could be instrumental.”

Collaborations could fund and conduct comprehensive studies on tyres performance under local conditions. By sharing data and expertise, these stakeholders can develop a more accurate understanding of the causes of tyre failures, improve maintenance practices and promote better safety standards for both new and retread tyres.

Additionally, international partnerships could allow for access to global tyre failure databases and new research, enabling Malaysia to adopt best practices from countries like US, Japan or the EU, where more tyre safety research is available.

Establishing a framework for ongoing research and data sharing with regular updates and reports would help fill the data gap and improve tyre safety standards locally. This collaborative approach could ultimately lead to the development of localised tyre safety standards, improved regulations and more informed decision-making by all stakeholders involved.

NEW LEARNING

According to Wong, Malaysia can learn important lessons from countries like Japan and UK, where retread tyres are promoted effectively for their cost-efficiency and environmental benefits. Both Japan and the UK have robust local manufacturing industries for new, high-quality tyres, which ensure a consistent supply of durable tyre casings for retreading.

This industrial advantage helps protect the respective retreading industries by ensuring the availability of reliable casings that meet safety and performance requirements. Japan enforces stringent standards for both new and retread tyres through the Japanese Industrial Standards (JIS) such as JIS D 4202, which defines specifications for automobile tyres. These regulations ensure high-quality tyre production and maintenance, supporting a thriving retreading ecosystem.

Similarly, UK relies on the ‘E’ mark certification system, which aligns with European safety and performance regulations. The ‘E’ mark, prominently displayed on compliant tyres, indicates that a tyre has undergone rigorous testing and meets safety standards. This harmonised approach in UK ensures that only certified-quality tyres are used, reducing risks and building trust in retread tyres.

In Malaysia, the absence of a local new tyre manufacturing industry for trucks presents a challenge. The reliance on imported new tyres, coupled with the fact that Malaysia’s new tyre standard (MS 1394) is not compulsory, allows low-cost and lower-quality imports to flood the market.

These tyres often produce casings unsuitable for retreading, which undermines the retreading industry. To address these issues, Malaysia could make MS 1394 mandatory for new tyres, ensuring better-quality casings and fostering trust in retreads.

Additionally, promoting awareness of retreads’ economic and environmental benefits, strengthening enforcement of Malaysian Standard 224 (MS 224) for retread quality and offering incentives for their adoption could help the industry grow.

Technology, such as tyre monitoring systems, can play a significant role in addressing concerns about retread tyres and improving road safety. These systems provide real-time data on tyre pressure, temperature, tread depth and overall tyre health, helping to ensure that all tyres, including retreads, are properly maintained.

By monitoring tyre performance, these systems can detect early signs of wear, overloading or misapplication, reducing the risk of tyre failure. This not only enhances the safety of retread tyre but also helps prevent accidents caused by poor tyre maintenance or low-quality tyres, leading to a change in perception.

Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.

Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”

Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.

Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.

Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.

Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.

This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.

Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."

Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.

The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.

The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.

Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.

To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.

Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.

International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.

Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.

Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.

Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.

CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.

The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.

The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.

Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.

Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.