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.

Balkrishna Industries Ltd. (BKT) has expanded its commercial vehicle tyre distribution network in central India with the opening of a warehouse in Indore, as it seeks to build its presence in the commercial vehicle radial (CVR) segment.

The facility, inaugurated recently, is intended to strengthen product availability and improve regional access in Madhya Pradesh, a state the company identifies as a key growth market.

Indore’s position as a freight and passenger transport hub, coupled with its proximity to the Pithampur industrial belt, underpins the company’s decision to locate the warehouse in the city. The facility will be operated by authorised distributor Shivam Track Impex Pvt. Ltd., supporting closer engagement with dealers, transporters and fleet operators.

The inauguration was attended by senior executives including Rajiv Poddar, Joint Managing Director, Satish Sharma, Senior President and Director of Business Development and Strategy, and Amitkumar Agarwal, National Sales Head for Commercial Vehicle Radial Tyres. Representatives from the regional transport sector were also present.

Agarwal said: “Madhya Pradesh represents an important opportunity for BKT as we build our presence in India’s Commercial Vehicle Radial segment. The expansion in the state reflects our confidence in the opportunity and our commitment to building the right ecosystem, in partnership with our authorised distributors to serve customers effectively. Indore provides a strategic base for us to strengthen our market access and engage more closely with fleet operators and channel partners.

“The new warehouse is an important part of this approach, as it will help us improve product availability and create greater responsiveness across the market. We want to build long-term relationships with transporters, fleet owners and our channel partners and as we expand our CVR business in Madhya Pradesh, our objective is to create sustainable value for the entire ecosystem and grow together with our partners.”

The move follows the launch of the company’s commercial vehicle tyre portfolio in the first quarter of the 2026–27 financial year, including the BKT m.Loadxpert (11.00R20) and BKT Milexpert RG (295/90R20). BKT said it is seeing early traction and is focusing on expanding its reach across key markets through its distribution network.

Magna Tyres Group has bolstered its executive team with the appointment of Arnold van Woerkum to the position of Chief Financial Officer. This strategic appointment is designed to reinforce the company’s leadership structure as it gears up for an aggressive phase of international expansion and pursues new acquisition opportunities on the horizon.

Van Woerkum initially joined the organisation in 2025, taking on a senior financial leadership role prior to this official elevation. He arrives with considerable industry experience, having previously dedicated over a decade to the Van Mossel Automotive Group in a corporate control capacity. His ascent to CFO coincides with a pivotal moment for the tyre manufacturer, which, following its recent integration of Forrez, is projecting a turnover of roughly EUR 275 million for 2026. The firm has laid out an ambitious long-term strategy, targeting a significant increase to EUR 650 million in annual revenue by 2029.

In his new capacity, Van Woerkum is tasked with fortifying the financial infrastructure and guiding critical strategic choices, especially concerning fiscal oversight and future mergers. To support this trajectory, the company is actively recruiting for several new finance roles within his department, creating opportunities for professionals eager to contribute to the next wave of global growth.

Michael de Ruijter, President, Magna Tyres Group, said, “Our ambitions require a strong financial organisation. We want to continue growing internationally, both organically and through acquisitions. Arnold brings more than 10 years of group finance experience and already knows Magna Tyres and our organisation well. His appointment as CFO is an important step in preparing the company for its next phase of growth.”

Van Woerkum said, “Magna Tyres has clear international growth ambitions. After a year within the company, I am excited to take on this role and contribute to that next phase. My focus will be on building the financial structure needed to support sustainable growth and future acquisitions.”

The Indian tyre industry continues to demonstrate robust momentum, underpinned by strong automotive demand, significant capacity expansions and a growing global footprint. In an exclusive interview with Tyre Trends, Arun Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA) and Vice-Chairman & MD, MRF, discusses the current landscape, raw material dynamics, replacement market trends and the outlook for the sector over the next few years.

How do you assess the current situation in the Indian tyre industry?

The Indian tyre industry has maintained consistent growth over the years and has now reached a market size of approximately INR 1,100 billion. It is expanding at a healthy 10–12 percent year-on-year, which represents a significant and sustainable pace for a mature sector.

In the last few years, the industry has invested over INR 270 billion in capacity augmentation, strengthening its ability to meet both domestic and international demand. Exports have also emerged as a key pillar, with the sector shipping tyres worth nearly INR 250 billion annually to over 170 countries worldwide. Having evolved over the past 70 years, the Indian tyre industry is now well-positioned for phenomenal long-term growth.

What is your view on Indian automotive sales growing at a record pace?

Original Equipment Manufacturers (OEMs) across segments are performing exceptionally well. Whether it is tractors, two-wheelers or passenger vehicles, strong sales momentum is clearly visible. When OEMs thrive, the tyre industry naturally benefits through higher OE fitments. We expect this positive trend to continue, driving further expansion in both the automotive and tyre sectors in the coming years.

What is the situation on the supply of raw materials, especially natural rubber? Is that something to watch out for in the coming months?

India currently produces only about 60 percent of the natural rubber required by its tyre industry, with the remaining 40 percent met through imports. As domestic demand grows, the volume of imported natural rubber is expected to rise further, potentially creating supply tightness.

To address this strategic vulnerability, a consortium of four major Indian tyre manufacturers has invested over INR 10 billion in rubber plantations in Northeast India over the last four to five years. While these plantations will take additional years to reach full production, they represent a meaningful step towards improving domestic supply security. Though it will not fully resolve the gap, this initiative will certainly help mitigate future shortages.

Replacement demand is also giving a significant boost to overall volumes. How do you see this evolving?

Absolutely. Strong OE sales today lay the foundation for healthy replacement demand in the future as vehicles age and enter the aftermarket. We remain optimistic that both OE and replacement segments will experience steady growth, providing a balanced and resilient demand base for the tyre industry.

Looking ahead to the next three to five years, what will be the key challenges and opportunities for the Indian tyre industry?

Like any dynamic industry, challenges will persist. Geopolitical developments, such as the ongoing Middle East crisis, have already led to rising raw material costs, elevated logistics expenses and higher shipping rates. These external pressures are part of the business cycle and will continue to test industry resilience.

Yokohama Rubber Company’s decision to establish Mexico as the manufacturing hub for its Americas OTR operations signals more than a capacity expansion. It reflects a strategic overhaul of its global industrial footprint. As geopolitical uncertainties, tariff risks and supply-chain disruptions reshape manufacturing priorities, the company’s ‘local for local’ model seeks to position production closer to customers while strengthening resilience. The move also underlines its broader ambition to emerge as the world’s second-largest supplier of specialised mining and construction tyres.

Yokomaha Rubber Company is seeing Mexico as its gateway for Americas, especially its OTR tyre business. Mexico will serve as the production hub for Yokohama and Goodyear Off-the-Road branded products under its ‘local for local’ manufacturing strategy.

Yokohama Rubber will invest USD 115 million to build a mining and construction machinery tyre plant in Mexico as part of the second phase of expansion at its site, where a passenger car tyre plant is already under construction. The brownfield facility will have an annual production capacity of 10,650 tonnes (rubber weight), with construction due to begin in the third quarter of 2026 and production expected to start in the second quarter of 2028.

The company is also establishing a greenfield OTR tyre plant in Odisha, India, with an annual production capacity of 9,150 tonnes and a planned investment of USD 130 million. Production at the Indian facility is scheduled to begin in the third quarter of 2028.

The facility will supply OTR tyres across North and South America, complementing plants in Romania, India, Japan and the Czech Republic, while maintaining global quality standards supported by research and development centres in Japan and US.

Speaking to Tyre Trends¸ Yokohama OTR President Loic Ravasio said, “Mexico becomes the anchor of our Americas production, part of a broader move towards a ‘local for local’ model in which we manufacture OTR tyres in every major region, closer to the customers who use them. It joins a growing worldwide footprint that already includes Romania, India, Japan and the Czech Republic – every site held to the same quality benchmark backed by our research and development centres in Japan and US. For manufacturing specifically, Mexico’s role is to serve North and South America from one central site, putting product closer to mining, construction and infrastructure customers throughout the Americas.”

The plants in India and Mexico are sized and positioned for the regions they serve. These new facilities are part of the company’s transition from Goodyear-operated production to Yokohama-owned sites while also growing its total worldwide OTR capacity. Japan remains one of the company’s core production sites throughout, added Ravasio.

“Mexico’s plant and India’s greenfield plant will more than replace Goodyear plants capacity, allowing us to continue supplying our existing customers, supporting their growth, and also winning new customers with the additional capacity,” he added.

As for production responsibilities, the company’s goal is to produce tyres closest to the customers that need them. OTR plants are flexible and able to adapt to regional needs. “We’re not locking in specifics yet. We want to listen to customers and show them what the combined portfolio can do first and let that shape where things get built,” Ravasio said.

The Mexico manufacturing facility is being developed in Saltillo, Coahuila. Its centralised location for production and distribution across the entire Americas region will allow Yokohama to produce OTR tyres closer to its customers, shortening the lead time and improving responsiveness to customer requests.

“We’re building the Saltillo site to be state-of-the-art from day one including the technology and quality standards because we’re not planning only for today’s market, we’re planning for where our customers and this industry are heading,” said Ravasio.

MARKET ADVANTAGES

The acquisition of Goodyear’s OTR business has created optimum synergies for Yokohama Rubber Company as it is now leveraging the strengths of two complementary product portfolios, which lets it offer one of the most complete product ranges available and better meet the needs of its customers.

“Manufacturing, logistics, research and development synergies have all played their part, bringing procurement, production planning and engineering together from both organisations rather than running them in parallel. Together, that’s meant retaining the great majority of longstanding accounts from both sides and winning new customers we hadn’t worked with before,” said Ravasio.

He added, “What’s really exceeded our initial expectations is the pace. We said we wanted to move quickly on capacity and within about a year of closing we’d already committed to three new or expanded plants across three continents. The two research and development centres working together have increased our capabilities to launch quicker new products and new technologies into the market. That pace shows real commitment to the OTR industry.”

Commenting on the advantages that Mexico offers the business, he noted that Mexico has a skilled, experienced manufacturing workforce and an established industrial supplier base. Its real advantage is geography as a single site here can efficiently reach customers across North America, Central America and South America, which is central to the company’s local-for-local approach.

Yokohama Rubber Company is also able to build on existing local relationships in the country, giving it a head start on talent and operational know-how as it brings the OTR plant online.

GROWTH DRIVERS

According to Ravasio, global infrastructure development in roads, rail and housing along with continued mining and construction activity continues to drive demand for OTR tyres across the Americas.

Mexico’s centralised location allows for shorter supply lines and tyres built closer to the mines and job sites that use them rather than shipped across oceans, which means less equipment downtime waiting on tyres.

“In a market where total cost of ownership (TCO) and not just tyre price drives the buying decision, minimising that downtime is one of the ways we compete,” he noted.

The Mexico plant is designed first and foremost to serve regional demand across the Americas. Nonetheless, the company’s global network is built for flexibility and the plant’s output can support other markets as needed to balance capacity across our worldwide footprint, said Ravasio.

The primary beneficiaries will be mining and construction operators across the Americas along with the infrastructure projects that depend on them. Yokohama Rubber Company’s priority is to better serve its customers, global or local, and to ensure business continuity.

Moreover, as competition toughens in the global OTR market, Yokohama Rubber Company seeks to secure the second spot in the list of world’s largest suppliers. Alluding to this, Ravasio said, “Our ambition is clear. We want to become the world’s second-largest supplier of specialised mining and construction tyres and the right manufacturing footprint is one part of how we get there alongside the same high-quality standards we’re building into every new site including Mexico.”

“Product quality and performance matter just as much and our research and development centres in Japan and US design tyres built specifically for this segment backed by services like tyre pressure management systems TPMS and EMTrack that give customers real-time visibility into tyre health and performance,” he added.

The target behind all of it is straightforward, which is to lower Yokohama customers’ TCO and help them run more competitive operations. Total cost of ownership matters more to OTR customers than any other measure and Yokohama Rubber Company is building everything including research and development, service tools and manufacturing around living up to its TCO leadership position in the market.

FIGHTING CHALLENGES

The plant is being built around modern, energy- and water-efficient lines with the digital process controls needed to hold consistent quality at scale. Producing closer to its customers also means less long-distance transportation of finished tyres and fewer transport-related emissions as a result.

Workforce training will be built around Yokohama Rubber Company’s current manufacturing standards and the plant’s operations will be measured against the environmental targets in its medium-term management plan.

Furthermore, this project is as much about people as it is about capacity. The company is leaning on local expertise and know-how in the region to build the Mexico manufacturing team paired with quality training grounded in its manufacturing experience from other parts of the world.

Hence, the site benefits from both perspectives from day one and creates meaningful skilled employment, directly at the plant and through the broader supplier network around it.

“It’s the same approach we’ve used successfully as we’ve expanded elsewhere. We invest in local talent, train heavily and hold everyone to the same standards we apply globally. Wherever we build, the people on the floor get the same training and hold the same standards as any other Yokohama site. That’s non-negotiable,” Ravasio said.

Alluding to tackling supply chain setbacks, the executive noted that producing closer to the customer is the clearest way to build resilience too as it reduces the company’s exposure to long cross-continental shipping routes and the risks that come with them, plus it helps mitigate the impacts of tariffs.

“Our plant in Mexico makes our overall industrial footprint stronger, which is what helps us weather supply-side setbacks rather than depending on any single site or transit lane. It also lets us react faster to swings in product trends and other unforeseen events because the people and the production capacity making that call are closer to where the need actually is. That kind of diversified, local-for-local footprint is deliberately designed to avoid the kind of supply shocks the industry has seen in recent years,” he added. And over the next five years, Mexico becomes one of the clearest proof points for the company’s local-for-local approach. “We expect continued growth from infrastructure and mining activity and customers pushing equipment harder, which raises the bar for durability and service as much as tyre technology. Regional manufacturing, closer partnerships with customers and the network we’ve built over the past year are how we intend to become the world’s second-largest supplier in the OTR industry,” Ravasio said.

Mexico’s emergence as the company’s Americas manufacturing hub represents a calculated investment in regionalisation rather than simple capacity addition. Whether this strategy translates into sustained market share gains will depend on execution, customer adoption and competitive pressures, but it firmly positions the company to respond faster to an increasingly demanding global OTR market.