Russia's tyre recycling industry has grown significantly in recent years due to increasing environmental concerns and government regulations aimed at reducing landfill waste. The country generates millions of tonnes of used tyres annually, with many initiatives focusing on recycling them into rubber granules, fuel and construction materials. Key players in the industry include local companies and a few foreign investments with major recycling plants concentrated around Moscow and other industrial regions.

However, the Russian Far Eastern region, referred to the vast, easternmost part of the country that borders the Pacific Ocean, still struggles to deal with the disposing of end-of-life (EOL) tyres.

According to Ecostar Factory Co-founder Sergei Lazarev, “Vladivostok, the largest city in Russia's Far East, ranks fifth in the country for vehicles per capita, making it the region's leader in vehicle density. This results in a growing volume of waste tyres annually, posing a significant environmental challenge. Due to the vast distances, transporting used tyres to recycling facilities in central Russia is prohibitively expensive, inflating both the recycling costs and the prices of products made from recycled materials. The lack of local recycling infrastructure exacerbates the problem, underscoring the need for regional solutions to manage tyre waste more efficiently and sustainably.”

“With 15 years of experience in tyre recycling, our company is well-positioned to meet the growing demand for tyre recycling in the Russian Far East. The new facility will allow us to recycle over 10,000 tonnes of ELT annually and meet market needs accurately. We also plan to double this capacity within the next five years, which is especially crucial in regions like the Russian Far East, where transportation costs are high and local recycling infrastructure is lacking. This expansion will help address regional tyre waste challenges more effectively,” he added.

A total of USD 500,000 was invested in the new tyre recycling unit, financed through a mix of 30 percent capital and 70 percent bank loans. The seven percent interest rate, subsidised by the Primorye Government Guarantee Fund and the Federal Government Fund for SMEs, highlights the strategic backing you’ve received. Specialising in recycling ELT tyres into rubber crumb, this setup not only aligns with growing sustainability efforts but also demonstrates the effectiveness of public-private cooperation in fostering business expansion and environmental impact in Russia’s Far East.

The Far East and Arctic Development Corporation (FEDC) played a crucial role in the tyre recycling project’s success by providing a 17.3-acre land lot and essential infrastructure. This included telecommunications, access roads, power supply, water supply, water disposal and natural gas supply. Additionally, FEDC offered tax benefits, making it a key partner in the project’s development, facilitating smoother operations and reducing overhead costs. This comprehensive support has been instrumental in advancing the project in the Russian Far East.

Promoting recycling

The company's operations, which focus on recycling ELT tyres without thermal methods like pyrolysis due to environmental concerns, were nearly derailed when the ruble-dollar exchange rate doubled in 2022, making equipment and construction prohibitively expensive.

Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition, particularly the amount of cord fibre. The company plans to recycle 20 years’ worth of accumulated tyre waste and supply crumb rubber to playgrounds, stadiums and road projects, boasting the only facility in the region certified to meet government sanitary standards.

With no direct competitors in the Primorye region, the company remains committed to expanding operations despite these challenges.

Answering how the new plant supports broader recycling goals, Lazarev said, “The new plant supports the broader goals of the company by serving as a central hub for tyre recycling in the Russian Far East. We operate facilities in five regions including Magadan, Kamchatka, Sakhalin, Khabarovsk and Primorye and plan to upgrade them within the next three years to produce rubber chips, which will be transported to the main facility in Primorye for further processing. Additionally, we aim to invest in research and development to develop additives for bitumen, enhancing its use in road construction projects. This strategy is key to expanding recycling capabilities beyond 10,000 tonnes annually and promoting sustainable infrastructure development.”

The company will source tyre waste primarily from transportation and tyre service companies. To ensure quality, it has implemented a comprehensive management system designed to produce clean, precisely sized crumb rubber. The triple cleaning process removes metal and cord fibre, while its proprietary qualification system ensures four specific size fractions of crumb rubber are achieved.

Alluding to European Union (EU) directive on crumb rubber infill ban, he noted, “Regarding the EU ban on rubber crumb in artificial turf, Russia has no such restrictions. In fact, a recent Russian government act (08/28/2024) mandates the use of rubber crumb in sports infrastructure and road construction. We have also obtained a special health certificate allowing the use of its crumb rubber in outdoor playground construction.”

Addressing challenges

Russia imports tyres primarily from China, which is the largest supplier, offering a wide range of products including passenger, truck and industrial tyres. South Korea follows, known for its high-quality passenger and performance tyres, while Japan contributes advanced technology and speciality tyres. Belarus, as a neighbouring country, exports various tyre products, particularly for commercial vehicles. Turkey has also been increasing its market presence with competitive prices and quality. Additionally, some European Union countries export tyres to Russia, although trade dynamics are influenced by tariffs and geopolitical factors.

Such a wide array of tyres poses challenge for recyclers. Commenting on the same, the executive said, “The plant was initially scheduled to open in August 2023. The company faced significant challenges due to currency fluctuations, infrastructure delays and regulatory hurdles. Despite purchasing Chinese machinery, adjustments were needed due to differences in tyre composition between China and Japan, particularly the amount of cord fibre. The lack of suitable land with the necessary infrastructure and meeting strict ecological standards are further obstacles.”

“We are currently facing a staff shortage across all skill levels, from low-skilled to highly qualified personnel. To address this, we plan to recruit workers from other regions of Russia and internationally. Recently, we hired five individuals from India on one-year contracts, providing them with comprehensive benefits that include accommodation, food, transportation and work uniforms. We aim to attract even more skilled workers this year to strengthen our team,” he added.

Ecostar's plant aligns seamlessly with Russia's broader waste management and environmental objectives, particularly in the Far East. It supports the government's strategy for a circular economy, which is reinforced by new legislation regulating the use of recycled materials in the production of goods and services. Additionally, the government has introduced the concept of ‘green purchases’, mandating that government agencies and state-owned companies procure a minimum quantity of products made from recycled materials. This initiative emphasises the importance of integrating recycled materials into the economy, enhancing sustainability efforts across the region.

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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.

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India’s tyre sector is moving into a steadier phase after cyclical tailwinds from GST-led formalisation and rural demand. Srikumar Krishnamurthy, Senior Vice-President and Co-Group Head, Corporate Ratings at ICRA, says replacement demand will continue to anchor growth in FY2027 even as original-equipment volumes soften. Premiumisation is lifting tyre makers’ realisations, though input volatility and competition cap pricing power. Export prospects are improving with new trade agreements, but regulatory risks and cost pressures persist as companies balance capex with discipline.

ICRA expects the Indian automotive sector’s wholesale growth to normalise in FY2027. How does this moderation in vehicle volumes translate into tyre demand across OEM and replacement channels?

The normalisation of wholesale volume growth in FY2027 follows a period of elevated growth in the second half of FY2026, which was driven largely by post-GST reform-led factors and favourable rural demand sentiments. The moderation in wholesale volume growth will consequently translate to a similar growth in OE segment. The aftermarket segment, however, will follow the inherent replacement cycle of different sub-segments and other fundamental factors.

Replacement demand currently anchors tyre industry growth. What level of growth do you expect in this segment going forward?

The replacement segment saw a robust growth in the last 4–5 months supported by the post effects of GST rate cuts and healthy rural demand following good monsoons and crop output. The current sentiments are favourable, with factors around economic activities, freight rate movement and farm output reflecting optimistic picture. The segment is likely to outperform the OE segment in FY2027 supported by inherent factors like replacement cycle, safety awareness and regulatory forces.

Premiumisation is evident in vehicles and tyres alike. How is the shift towards larger rim sizes, radialisation and higher-value products shaping revenue growth versus volume growth in FY2026–27?

A change in product mix has been observed in recent times. Rising preference for utility vehicles, premium bikes and electric vehicles have resulted in changes to the average selling price (ASP) of tyre makers. While these elongates the product replacement cycle over time, higher share of sales of large rim sizes and high-performance tyres results in premium pricing and value growth. That said, pricing pressure because of competition and movement in input prices restricts the premium to an extent, in certain segments.

What impact do you expect from the evolving trade agreements between India and United States, along with the proposed India-EU free trade deal, on tariffs for tyres produced and exported from India?

US and Germany are the top-two destinations for Indian tyre exports. Overall, tyre export volumes grew by around 10 percent in FY2025 and around eight percent in H1 FY2026. The recent signing of India-UK and India-EU deals is a positive as Indian tyres are increasingly getting exported to these regions in recent period, reflecting better acceptance. While the developments on India-US tariff-related aspects are a positive, stability in tariff reforms will be critical towards better visibility of exports.

With exporters pivoting towards Europe, Africa and Latin America, what competitive or regulatory barriers might Indian tyre makers face in these markets over the next 12–18 months?

The prospects of Indian exporters remain vulnerable to the regulatory actions and competitive forces. The US tariff-related developments have made tyre makers in

South-East Asia and China more competitive (as compared to India), although the changes in tariff rates is a positive development for Indian exporters. While a depreciating rupee was beneficial, the recent capping of RodTEP benefits is a negative impacting the competitiveness of Indian tyre makers.

Natural rubber prices have remained elevated and volatile. How do you expect raw-material cost trends to evolve in FY2027, and what does this imply for tyre company margins and pricing power?

Rubber prices largely track the demand-supply factors. The prices have largely been volatile in recent years and were affected by a relatively subdued consumption globally. While the supply will remain influenced by weather and other related factors, the global tyre demand is likely to be relatively better, thus keeping the prices firmer in the coming year.

Beyond rubber, inputs such as carbon black and crude-linked derivatives are cyclical as well. Are tyre manufacturers adequately positioned to manage input volatility through sourcing strategies or pass-through mechanisms?

To protect the margins, tyre makers have resorted to better production planning, maintaining optimal inventory and altering the sourcing strategies. That said, the earnings profile of tyre makers remains exposed to any sharp volatilities in input prices, especially replacements.

Industry capex has remained steady, focused on radial capacity and premium segments. Do you foresee a new investment cycle in FY2027–28, or will companies prioritise balance-sheet discipline amid demand normalisation?

The industry’s capex spends are estimated at 8–10 percent of revenues with sizeable investments towards expansions in passenger vehicles and trucks and bus tyres, along with continued focus on debottlenecking, maintenance and R&D activities.

Looking beyond demand and costs, what are the most significant structural challenges facing the Indian tyre sector over the next three to five years – technology shifts, sustainability mandates or global competition?

Multiple trends are emerging in the auto industry, like vehicle premiumisation, changing powertrain mix, fluctuation in adoption of EVs across different product segments etc. In this backdrop, and coupled with global geo-political uncertainties and climate changes, tyre makers face challenges around business strategies. Strengthening technological capabilities, investments in premium performance tyres, enhanced usage of AI for operations, streamlining supply chain activities and diversification are the likely key focus areas for Indian tyre makers.

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Kumho Tyre UK has strengthened its leadership team with the appointment of Luke Emery as Sales Director for South East England, a move that coincides with the company’s expanding product range and reports of growing demand across the region. Bringing 22 years of deep-rooted experience in the tyre sector, Emery’s background spans both motorsport and passenger car applications, positioning him well to drive commercial performance in this key territory.

His appointment forms part of Kumho’s ongoing investment in its UK operations, reflecting a continued commitment to reinforcing the domestic team as demand rises for an increasingly diverse product portfolio. In this new role, Emery will work alongside the existing UK management and sales teams to deliver dedicated support to customers throughout the South East, ensuring the business remains responsive to evolving market needs.

Richard Lyons, Managing Director, Kumho Tyre UK, said, “We are delighted to welcome Luke to the Kumho team, adding to the enrichment of our team that we have seen over the past few months. The UK market has shown excellent acceptance of our latest products and Luke’s appointment reflects our commitment to building a talented, future-focused team that can support our customers and continue driving the growth of the Kumho brand across the UK.”

Emery said, “Having worked at Kumho in the past, I’m delighted to return at such an exciting time for the brand. Kumho has built a strong reputation for delivering high-quality tyres that offer excellent value and performance, and the market response to the new products has been extremely positive.”

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Clemson University has announced the appointment of Dr Saied Taheri to the External Advisory Board of its Mechanical Engineering department, strengthening ties between academia and research leadership. The move highlights the institution’s continued focus on advancing engineering education through experienced global contributors. Dr Taheri’s longstanding association with Clemson, where he completed his undergraduate, master’s and doctoral studies in mechanical engineering in 1984, 1986 and 1990, respectively, positions him as a deeply connected figure familiar with the university’s academic values and institutional goals.

Currently a professor at Virginia Polytechnic Institute and State University, Dr Taheri also serves as Director of the NSF-supported Industry–University Cooperative Research Center for Tire Research (CenTiRe). His career spans both academia and industry, including a tenure as a senior engineer at Goodyear Tire & Rubber Company and an adjunct faculty role at the University of Akron between 1998 and 2007. Since joining Virginia Tech in 2007, he has mentored a significant number of scholars. His research contributions have focused on tyre and vehicle dynamics, simulation technologies, intelligent tyre systems and chassis control.

In his new advisory capacity, Dr Taheri is expected to contribute to shaping departmental strategy and fostering innovation-driven initiatives. His combined expertise in research, teaching and leadership is anticipated to support Clemson’s efforts to enhance student outcomes and maintain excellence in mechanical engineering.

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