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.

India’s rapidly expanding fleet ecosystem faces a persistent paradox with rising logistics demand alongside shrinking profit margins.

As operators grapple with fuel costs, compliance burdens and operational inefficiencies, tyres, often the second-largest fleet expense, are emerging as a critical lever for efficiency. Integrated tyre management solutions backed by data analytics and vendor-led lifecycle management are increasingly being viewed as a potential turning point to improve uptime, extend tyre life and stabilise operating costs across fleets.

India’s fleet ecosystem broadly includes long-haul commercial truck, last-mile delivery, urban distribution, passenger transport fleets and emerging electric vehicle fleets.

Growth in e-commerce, logistics modernisation and digital technologies such as telematics and AI-based route optimisation are reshaping fleet operations. Last-mile delivery fleets, often using small commercial vehicles, two-wheelers and EVs, are expanding rapidly to support online retail and quick-commerce models.

Amidst these growth drivers, integrated tyre management solutions and educating fleet owners might just be the hail Mary as the sector consistently grapples with the challenge of increasing profit margins and reducing operational costs.

The Asia-Pacific tyre fleet management solutions market was valued at USD 2.2 billion in 2024, riding at a compound annual growth rate of 9.2 percent as per data by Strategic Revenue Insights.

Speaking exclusively to Tyre Trends on avenues that can increase cost and operational efficiency for fleets, Reema Kothari Jogani, Director, Reema Transport, noted, “The sector requires education on different aspects of operations and fleet tyre management solutions powered by new-age technology. The more we grow on education, the more we can streamline operations and reap the most of current market trends and demand.”

According to Jogani, tyres are the second most costly investment for fleets and companies require tyre management solutions that can increase its entire service life. “We currently operate on a cost-per-kilometre (CPK) model with a vendor. Under this arrangement, we provide them with the kilometre requirement per month and they manage the entire tyre lifecycle,” she said.

This approach has simplified operations for the company as the executive claimed that tyres can run for more distances but fleets often don’t achieve it because performance depends heavily on factors such as driving behaviour and road conditions.

She noted that engagement with tyre industry vendors has recently increased, improving access to data and making tyre management easier. Earlier, there was little structured support despite tyres being the second-largest fleet cost after fuel, so tyres were managed in-house. Later, the company partnered with specialised vendors for professional management.

“Today, detailed data helps analyse tyre wear, identify whether damage is caused by driver behaviour, road conditions or manufacturing issues and determine optimal replacement timing. Such insights also create learning opportunities for fleet operators,” said Jogani.

She believes that technology combined with skilled manpower to interpret data is the future, though priorities differ by company. “Some focus on AI for vehicle utilisation, while others prioritise tyre management. Overall, the evolution from basic GPS tracking to advanced tyre and fleet analytics has improved driver education, fuel efficiency, mileage and safety,” she said.

HURDLES REDUCING

Tyre management solutions have historically remained a largely manual and reactive process. Kothari suggested that the industry is now gradually moving towards digital tyre health management systems, but the transition is still uneven.   

“While technologies such as telematics, RFID tagging and Bluetooth-enabled sensors are becoming more common, their effectiveness ultimately depends on three factors viz-a-viz driver awareness, reliable data and integrated management platforms,” she noted.

One of the most widely acknowledged benefits of tyre management systems is improved fuel efficiency through lower rolling resistance. Poorly inflated or poorly maintained tyres increase resistance against the road surface, forcing vehicles to consume more fuel.

“Fleet operators recognise this link, but many say it remains difficult to translate tyre performance improvements into clear financial gains within their profit-and-loss statements,” noted Jogani.

In theory, telematics platforms can track parameters such as tyre pressure, temperature and kilometres travelled. However, tyre monitoring systems often operate separately from fuel management software.

This makes it challenging for fleet operators to directly correlate tyre condition with fuel consumption. As a result, the financial benefits of tyre management tend to appear indirectly through longer tyre life, reduced breakdowns and fewer vehicle stoppages rather than through clearly quantified fuel savings.

“Another key pillar of tyre management is driver participation. Despite the growing use of sensors and digital monitoring systems, fleet owners emphasise that drivers remain the first line of defence when it comes to tyre safety and performance,” informed Jogani.

She added that many companies have begun investing in structured driver education programmes, encouraging drivers to conduct daily visual inspections and basic checks before starting a trip.

Training typically focuses on recognising abnormal tyre wear, maintaining correct pressure and avoiding harsh driving behaviour that accelerates tyre degradation.

“However, implementing such training across large fleets can be difficult. Indian transport networks often involve drivers operating across multiple states, languages and levels of formal education. This makes consistent driver training programmes a challenge,” she noted.

Some fleets are experimenting with simplified training modules and incentive schemes that reward drivers for maintaining tyre health and reducing wear.

HELPING HAND

Tyre manufacturers are also playing a more active role in supporting fleet operators. Several companies now provide tyre health audits, driver training workshops and digital tyre management tools as part of their service offerings.

In some cases, dedicated engineers visit fleet depots to analyse tyre wear patterns and recommend corrective measures. Yet Jogani noted that these services often remain focused on tyre performance rather than offering a fully integrated operational view that connects tyres with fuel usage, driver behaviour and route conditions.

“One of the most persistent challenges in tyre fleet management today is the disparity between driver-reported information and digital platform data. Fleet owners frequently encounter differences between kilometres logged by drivers and those recorded by telematics or tyre management systems. These discrepancies complicate tyre lifecycle analysis and make it difficult to accurately calculate cost-per-kilometre metrics,” she explained.

The problem is often compounded by the use of multiple independent software systems that do not communicate with each other seamlessly.

This shift is gradually transforming workshop practices from scheduled inspections to predictive maintenance. Instead of identifying tyre issues only during routine checks, fleets can intervene earlier when digital alerts signal potential problems.

COST CENTRE TO STRATEGIC ASSET

When Jogani began her company’s operational portfolios, one gap stood out. Tyres were being managed without a dedicated system.

“Vendors frequently claimed their tyres could run beyond 100,000 kilometres. In practice, however, the fleet was seeing lifespans closer to 70,000–80,000 kilometres. The discrepancy prompted a deeper operational review,” she said.

Even before adopting a formal tyre management programme, the company had implemented a checklist-based inspection system. The shift came when tyre suppliers began introducing CPK model, under which vendors assume responsibility for tyre performance and lifecycle management.

Under the arrangement, the vendor becomes responsible for ensuring tyre performance. The model also exposed Jogani to practices that were previously unfamiliar, such as checking tyre pressure, tyre condition, oil levels and coolant status.

“Professional management of these processes, from rotation schedules to monitoring, significantly reduced operational complexity for us,” she added.

“When someone manages all these aspects professionally, life becomes much easier for a transporter,” Jogani said. “Of course, such services come at a cost because vendors invest manpower and technology into the process.”

Still, she believes adoption will expand as transporters better understand the financial and operational benefits.

In terms of fleet downtime, however, tyres are rarely the primary cause of breakdowns when properly maintained.

“In my experience, breakdowns rarely happen purely because of tyres, provided they are well maintained and drivers are trained properly,” she said. “Most tyre-related problems occur due to poor road conditions, which may cause punctures.” 

For Jogani, tyres have evolved from a consumable to a strategic asset.

VENDOR-LED ECOSYSTEMS

Today, most tyres in the company’s fleet are managed by vendors.

However, new vehicles initially run on the tyres supplied by the manufacturer before being gradually integrated into the vendor programme.

“For new vehicles that we add to the fleet, they initially operate with the tyres supplied by the manufacturer and are not immediately part of the vendor programme,” Jogani said.

The system has been in place for roughly two to two-and-a-half years and has already improved tyre productivity.

While the company now pays a slightly higher premium, the operational benefits outweigh the cost.

“The entire tyre management responsibility now lies with the vendor,” she said. “They ensure that tyres are maintained properly and perform according to the agreed parameters.”

Previously, the fleet often lost value because tyres did not reach their expected lifespan.

Isolating the precise financial impact remains difficult, however, because other costs have also risen.

“Vehicle prices have gone up, compliance requirements like AIS-140 have added costs and operational expenses have increased overall,” she said. “Because of these multiple factors, it becomes difficult to isolate the exact savings purely from tyre management.”

DIGITAL ADOPTION

Adoption of digital tyre management tools such as tyre pressure monitoring systems (TPMS) remains uneven across the logistics sector.

“If you ask me honestly, some companies are adopting these systems, especially larger fleets,” Jogani said. “A few mid-sized companies also have in-house maintenance teams that manage tyre monitoring.”

Cost considerations remain a major barrier. “Fuel is a major cost component and tyres are the second major cost. At the same time, safety requirements are increasing,” she said.

From a transporter’s perspective, the return on investment can appear uncertain.

“Another challenge is behavioural,” Jogani said. “Even if technology like TPMS helps drivers save fuel or improve efficiency, not all drivers may be willing to openly share that benefit with fleet owners.”

Integration is another concern. If every tyre supplier operates its own digital platform, complexity rises rapidly.

“If I have a fleet of 100 vehicles and they are managed by one vendor who provides a single dashboard with analytics for all tyre data, it makes sense,” she said. “But if I have to deal with multiple vendors and multiple platforms, the cost and complexity increase significantly.”

An integrated tyre management platform, she added, would provide the most effective solution.

Transporters also need clearer demonstrations of value. Moreover, affordable pricing models could accelerate adoption, particularly among mid-sized operators.

DELEGATING PROCUREMENT

Operating across western, central and southern India exposes fleets to widely varying road conditions and temperatures. Earlier, the company tailored tyre procurement to specific routes.

“Because our operations involve life-saving logistics, safety has always been the top priority,” Jogani said. “For that reason, we rarely opted for retreading or remoulding.”

“Since the vendor is responsible for tyre performance and lifecycle management, we have largely left these decisions to them,” she added.

Under the current arrangement, retreaded tyres are generally not used in the fleet.

“For our operations, factors such as durability, heat resistance, load-carrying capacity and tread design are extremely important,” Jogani said.

Vendor representatives are stationed at company branches to monitor vehicles continuously. Monthly billing is based on usage data, while inspections track tyre condition, alignment and kilometres covered.

“Because of this constant monitoring, tyre management has become much easier for us,” she said.

The vendor also plays an advisory role, analysing operational data and providing feedback on driving patterns.

Furthermore, comparing performance data between drivers operating similar vehicles helps improve training and accountability.

On the other hand, small fleet operators often struggle to adopt tyre management technologies due to cost constraints, making collaboration with larger logistics ecosystems crucial.

According to Jogani, smaller fleet owners attached to networks like Reema Transport can access systems they might not afford independently. For these operators, keeping vehicles running is critical because downtime directly halts income and affects their ability to service loans.

As a result, adoption of tyre management solutions is likely to be gradual, supported by education on long-term cost benefits and collaborative industry models.

On the other hand, Sharma believes that it is relatively easier for an established off-highway tyre specialist to expand into the B2C or on-highway tyre segment than it is for traditional consumer tyre companies to build the capabilities needed for off-highway applications.

To ensure that its leadership in off-highway tyres remains intact, the company has ring-fenced the two businesses. The off-highway and on-highway operations will run independently with a completely separate team dedicated to the consumer tyre segment.

The distribution strategy will also be different. “The on-highway business will have its own distributors and channel structure and we will not rely on the existing off-highway distribution network for this segment,” he said.

In effect, everything from organisational teams to distribution channels has been designed to remain distinct while still allowing the company to selectively leverage complementary strengths where it makes strategic sense.

UNCHARTED TERRITORIES

Entering the B2C tyre space in India is widely seen as challenging, as the market is dominated by a handful of established players and is extremely price competitive.

Alluding to how the company will navigate through such uncharted territories, Sharma said, “While the Indian tyre market is indeed dominated by major players, that concentration also indicates limited brand diversity rather than excessive competition. This suggests there is still room for credible new entrants that can provide customers with more options.”

Sharma also believes that the company enters the market with an advantage because it already has a well-recognised brand presence in India. It is not a completely new or unknown player entering the country for the first time.

“Given that roughly 90 percent of the market is served by only a few companies, we see an opportunity to gradually establish ourselves by offering reliable products and expanding customer choice,” noted Sharma.

Also, India is one of the largest markets in the world for two-wheeler tyres. The company’s long-term strategy is to eventually address multiple segments, but the initial focus will be on high-volume categories.

“Building a strong distribution network requires products that move quickly and consistently through the market, making high-volume segments the logical starting point. The two-wheeler tyre market in India is largely volume-driven with enormous demand levels. Success in this segment requires deep market penetration, strong brand awareness and the ability to deliver high-quality products consistently,” explained Sharma.

As a result, the company plans to begin with two primary product categories viz-a-viz a pure on-road tyre and an on-off-road tyre. “Within these categories, several sub-segments will be introduced to address different consumer needs. This multi-product approach is designed to help build the distribution network, strengthen brand visibility and establish our operating model in the market. Additional product lines will be introduced gradually once this foundation is established,” contended Sharma.

He also believes there is a meaningful opportunity to bring more innovation to better serve Indian consumers. From a consumer perspective, introducing fresh breakthroughs in two-wheeler tyre technology could unlock new levels of performance, safety and value in the years ahead.

He believes the market is ready for new products with improved performance characteristics and superior attributes. Increased competition can drive innovation and ultimately benefit consumers.

DISTRIBUTION DISRUPTOR

The biggest challenge in the two-wheeler tyre business is reach and market penetration, noted Sharma. Unlike other tyre segments that rely heavily on specialised dealers, two-wheeler tyres are frequently purchased from nearby mechanics or small retail outlets because customers typically treat them as basic, everyday products rather than highly technical components.

He added that most riders are unwilling to travel long distances to a specialised tyre store for a replacement. This has created a highly dispersed retail ecosystem with multiple types of sellers. Over time, the market also adopted a distributor-led model that proved commercially successful and helped some leading companies expand their reach significantly.

However, that model also has weaknesses. “Many companies operate both legacy dealer networks and distributor systems simultaneously, which can lead to channel overlaps. In practice, this often results in product infiltration between territories, price inconsistencies across outlets and confusion for end customers,” stated Sharma.

He added, “Entering the market later provides an advantage because we do not carry the burden of legacy distribution structures. Instead, we plan to implement a pure distribution model from the outset. Each distributor will operate within a clearly defined territory with strong protection from channel overlap, allowing them to invest confidently in building their regional market.”

According to Sharma, this structure has already generated strong interest among distributors. Many see the opportunity as a long-term entrepreneurial venture where they can build a stable and scalable business.

He believes that this model will help the company challenge some existing distribution norms not only in two-wheelers but eventually in other tyre segments as well.

REGULATORY RESILIENCE

On the other hand, Sharma noted that the commercial tyre market must be viewed within the context of rapidly evolving regulations and policy direction. India’s decision to move directly from Bharat Stage IV to Bharat Stage VI emission norms illustrates how quickly regulatory frameworks can evolve. Discussions around future stages, along with policies such as Extended Producer Responsibility (EPR) for tyres, are reshaping how companies must approach the market.

At the same time, government policy clearly indicates a long-term transition towards greener mobility.

“We believe retreading should play a far larger role in the tyre lifecycle. Retreading extends the usable life of tyres, offering both economic benefits for fleet operators and environmental advantages for the broader ecosystem. Yet, despite its logical benefits, retreading volumes in India have actually declined in recent years,” noted Sharma.

The company intends to challenge this contradiction by promoting retreading more actively and working with customers who share the same long-term vision. Education and engagement will form an important part of this strategy.

Another factor influencing product strategy is the increase in vehicle loading across the trucking sector. “Higher loads often cause tyre wear patterns that reduce retreadability, highlighting the need for better product specifications,” said Sharma.

Rather than competing directly in the most crowded segments, the strategy is to align with emerging market trends, promote technically appropriate products and raise awareness about more sustainable tyre usage practices.

RETREADING PARADOX

Sharma said Indian consumers are willing to pay more when they see value, as they tend to evaluate purchases rationally, with fleet operators focusing on total cost of ownership rather than just the upfront price.

He argued that taxation alone cannot explain the recent slowdown in retreading. Earlier, GST on new tyres stood at around 28 percent and has since been reduced to roughly 18 percent, while retreaded tyres are also taxed under the GST framework.

“The decline in retreading activity has been taking place for nearly three years, which suggests that GST changes alone cannot explain the trend,” Sharma said, noting that a large portion of the business historically operated in the informal sector. “Taxation may therefore be a convenient explanation, but it does not fully address the deeper structural issues affecting the market.”

According to him, the deeper issue lies in a structural conflict within the tyre industry, where promoting retreading aggressively could reduce demand for new tyres.

“Many manufacturers have experimented with retreading programmes or franchise models, but they rarely pursue them with the level of commitment required to develop the ecosystem fully,” he noted.

Sharma believes this gap creates an opportunity to engage with fleet operators and promote better tyre lifecycle management.

“With improved highway infrastructure, higher vehicle speeds and evolving regulatory expectations, better utilisation of retreading could benefit both the industry and the environment,” he added.

The company plans to focus on casing preservation and customer education while working with reliable regional retreaders to encourage better tyre lifecycle practices.

DEVELOPMENT AND SUPPLY

BKT already operates advanced indoor tyre testing equipment and initially utilised some of the testing infrastructure that had been developed for its off-highway tyre business while additional machines were being installed. It now has a strong indoor testing setup and continues to expand and upgrade this infrastructure to support product development.

It has also earmarked an INR 35 billion investment for expanding its on-highway tyre portfolio. While Sharama didn’t disclose a detailed breakdown, he informed that the investment will be distributed across the different business segments including off-highway tyres, on-highway tyres and carbon black based on strategic requirements.

He also said that if future growth plans require establishing technical centres or partnerships in overseas markets, the company remains open to taking those steps.

For the export markets, for the first two years, the focus will remain on building the product portfolio and preparing the range for international markets. A broader market launch through the global distribution network is expected to follow about two to three years later.

Commenting on the opportunities and challenges that the company will face in achieving the target of INR 230 billion in revenue from the current INR 100 billion, Sharma said, “Our core off-highway tyre business continues to grow strongly, particularly in India. Slower growth in certain international markets in recent years has been influenced more by geo- political developments rather than by any structural weakness in demand.”

“If those external conditions stabilise, we believe that the core business remains on a solid growth trajectory. India, in particular, continues to be a strong growth market,” he added.

Each business segment operates with a distinct strategy, and based on internal planning, the company believes achieving roughly 2.2 times growth over the next few years is feasible.

At the same time, Sharma viewed the revenue target as intentionally ambitious. “Setting a bold goal helps ensure that strategies are clearly defined, documented and communicated across the organisation so that teams understand exactly what must be done to achieve it,” he stated.

Metso has announced the appointment of Jonathan Allen as its new Chief Growth Officer, effective 1 May 2026. In this role, he will oversee the Business Growth function, which includes Strategy, Mergers & Acquisitions, AI, Data & Analytics, Sustainability, Safety, Quality, Communications & Public Affairs, Marketing & Brand and Corporate Procurement. Allen will join the Metso Leadership Team and report directly to President and CEO Sami Takaluoma. He replaces Claudia Genin, who is set to leave the company by August 2026, as previously disclosed.

A longstanding member of the Metso team since 2005, Allen most recently served as Senior Vice President for the Grinding, Bulk, Pyro & Smelting business line and was also part of the Services business area leadership group. His career at Metso spans over two decades, during which he has held various leadership positions in both France and United States.

Allen holds a bachelor’s degree in mechanical engineering from Penn State University, US. His extensive operational and international experience within the company positions him well to lead Metso’s growth and strategic initiatives going forward.

Sami Takaluoma, President and CEO, Metso, said, “Jonathan’s extensive experience at Metso, a deep understanding of our industry and his proven leadership in business strategy execution and growth make him exceptionally well suited to lead our Business Growth function. I am confident that, under his guidance, we will continue to advance our ‘We go beyond.’ strategy and further strengthen Metso’s growth and success.”

Allen said, “Over the past two decades, I have witnessed our company’s remarkable progress, and I look forward to collaborating across our global teams to drive our strategy further and ensure that we continue to deliver exceptional value for our customers and stakeholders. Together, we will build on our strong foundation, accelerate our transformation and support Metso’s vision to be the industry leader.”

PRINX CHENGSHAN has achieved another major milestone in its direct sales and original equipment business with the selection of its PRINX AQUILA PRO tyre as original equipment fitment for the NEVO Q05, a global high-volume model from Chang'an Qiyuan.  The pairing made a notable impact at the 47th Bangkok International Motor Show, where the vehicle’s appearance drew widespread international attention.

The PRINX brand, representing the mid-to-high-end segment under PRINX CHENGSHAN, centres its approach on using tangible technology to enhance mobility. The AQUILA PRO tyres delivered for Chang'an Qiyuan combine efficient braking enabled by advanced structural engineering with EU Class A rolling resistance and responsive handling. This performance profile directly supports Chang'an Qiyuan’s commitment to a superior all-around user experience, reinforcing a partnership aimed at building a refined mobility ecosystem.

The Bangkok exhibition also highlighted the growing market presence of PRINX across multiple platforms. Both the MG5 PRO Thai Version and the MG S5 EV Thai Version run on the AQUILA PRO tyres, gaining traction in Thailand through accessible pricing and strong technical capability. Separately, the Ora 5, an all-electric A-segment SUV, debuted globally in Bangkok equipped across its lineup with the PRINX XNEX SPORT EV tyres, underscoring its blend of design, intelligence and global readiness.

With a rapidly evolving global network encompassing two major R&D centres, four technology centres and three smart manufacturing bases, PRINX CHENGSHAN has steadily advanced its product innovation and direct sales channels. The company’s forward-looking strategy centres on a products plus services model, integrating quality manufacturing with full lifecycle support to drive green and intelligent mobility. Through close collaboration with partners, it seeks to foster sustainable industry development and bring the strengths of China’s intelligent manufacturing to a broader global audience.