MRF continues to lead the tyre industry with a strong focus on quality, innovation and customer satisfaction. With a presence in over 70 countries, MRF’s dominance spans across categories including commercial vehicles, two-wheelers, electric vehicles (EVs) and aircraft tyres. As India’s economic growth drives increased demand for commercial vehicles, MRF capitalises on this shift towards larger trucks and the expanding EV market. Additionally, the company’s technological prowess is evident in its supply of defence aircraft tyres. Despite challenges like rising rubber prices, MRF’s commitment to development and sustainable practices ensures its continued growth and global expansion.

MRF Vice Chairman and Managing Director Arun Mammen opined that India’s economic prosperity is leading to a demand for original equipment, which in turn is driving the volumes for commercial vehicle tyres upwards. Speaking to Tyre Trends on the sidelines of the Bharat Mobility Global Expo 2025, Mammen noted, “The commercial vehicle tyre segment is primarily driven by OEM demand. India’s economic performance is increasing commercial activity, leading to a higher number of trucks being sold. A notable trend in this segment is the shift towards larger trucks. This shift is primarily due to improved road infrastructure. Additionally, these trends see tyre volumes grow even in the replacement market.”

He added, “Government policies over the last 5–6 years have also played a crucial role in shaping the industry. The transition from BS4 to BS6, changes in axle load norms and various other regulatory developments have influenced tyre design and performance requirements. We have remained ahead of these changes, ensuring our products fully comply with government guidelines.”

The company theme for this year at the expo was ‘Muscle in Motion’, which highlighted MRF’s leadership, technology, innovation and sustainability.

MRF has been a leader in the tyre industry for 37 years, covering all categories. The executive noted that while competition was close in some segments, the company continued to have a leading position in tractors, trucks, light commercial vehicles, commercial vehicles and three-wheeler tyre segments. Its market leadership was further reinforced by its financial performance in FY 2023-24 with turnover of over INR 250 billion.

The company is experiencing double-digit growth, particularly in the first half of CY25, while most of the industry had struggled to achieve similar momentum. “We have consistently grown across all tyre categories including infrastructure, farm, two-wheeler and truck tyres,” revealed Mammen.

“Our ability to maintain market dominance for nearly four decades is rooted in a simple yet powerful philosophy, which is quality, customer focus and continuous innovation. We prioritise understanding customer needs and delivering better-thanexpected performance. This relentless pursuit of excellence ensures that we provide the best value for money,” said the official.

EXPANDING PORTFOLIO

A recent media report mentioned that MRF is seeing significant progress in the EV tyre segment, covering both OEM supply and the replacement market.

Exuding confidence for its EV tyre portfolio with the evolving automobile space in India, Mammen noted, “We are actively innovating in this space and a great example is our new EV tyre, recently supplied to Mahindra for its latest EV launch. This tyre incorporates a unique foam technology that significantly reduces noise, offering a quieter and more comfortable driving experience. With the growing adoption of electric vehicles, such advancements are crucial as EVs inherently produce less mechanical noise, making tyre noise reduction even more essential.”

He added, “Our tyres are fitted on several OEM vehicles including that of Maruti, Toyota, Honda and Bajaj models. The EV space will continue to grow as charging infrastructure improves, making electric mobility more convenient for consumers. While passenger vehicles and two-wheelers are currently leading the shift, we expect commercial vehicles to gradually follow suit as fleet operators gain confidence in battery technology and cost efficiency.”

Moreover, the company exclusively supplies tyres for Indian defence aircraft and helicopters with plans to expand the portfolio. Commenting on the same lines, Mammen revealed, “MRF supplies aircraft tyres to India’s defence forces including the Air Force and Navy. The majority of defence aircraft flying today are equipped with MRF tyres. The Indian Government does not import aircraft tyres unless we do not manufacture a specific type, further reinforcing our dominant position in this critical sector.”

MARKET TALK

MRF set up a new plant in Gujarat recently and ongoing expansions across multiple facilities are in process. Mammen noted that factories were continually being upgraded to meet evolving market demands. The company’s export business contributes between 10 to 12 percent in its total revenue, said Mammen.

The company currently exports to 70 countries worldwide. When asked about exploring new regions, the executive highlighted, “We are always looking for new opportunities for growth. A key example is our dominance in rally racing. We have been European champions for two years, beating multinational competitors, and in Asia Pacific, we have been rally champions for nine consecutive years. These victories highlight our engineering excellence and performance capabilities, opening doors to further expand our brand presence.”

Another trend within the Indian tyre market is Tyre-as-a-Service. Commenting on whether MRF plans to foray in the segment, he said, “Tyre-as- a-Service currently accounts for less than a single-digit percentage of the overall business. The limited adoption is due to challenging operating conditions. While some companies initially ventured into this space, many later exited due to difficulties in scaling the model. We continue to monitor this segment and will assess its potential for expansion in the future.”

TALKING ROADBLOCKS

The official identified the rising prices of rubber as one of the largest problems facing the tyre industry. Mammen explained that raw material costs account for about 70 percent of tyre production costs. As crude oil prices increase, the cost of production also rises, which is further impacted by fluctuations in the rupeedollar exchange rate.

“The price of natural rubber has remained high for a while and this is a challenge for many tyre manufacturers including us. India does not produce enough natural rubber to meet domestic demand, so we rely on imports to supplement local supply. This dependency on imports means we are exposed to fluctuations in global rubber prices, which can impact our overall cost structure,” said Mammen.

Despite the challenges, the company’s near-term research and development focus will involve both recycling raw materials and exploring green energy solutions such as energy and water recycling while also controlling wastage.

The company had made a Capex of over INR 21 billion in the previous financial year and nearly INR 7 billion in the first six months of the current financial year. These investments are directed towards areas with growth opportunities in truck, passenger and two-wheeler markets.

When asked about retail expansion, Mammen noted that there is always room for growth, both in expanding the dealer and retailer network and in online retail.

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CEAT Limited plans to invest INR 13-14 billion in fiscal 2027 to expand capacity and support growth, as the tyre maker rides strong momentum from a record FY26 while preparing for a near-term squeeze from raw material inflation.

The capital expenditure programme—up roughly 25 percent from the previous year—comes as capacity utilisation remains elevated at 85–90 percent across categories, necessitating incremental investments to meet demand.

Chief Executive Arnab Banerjee said the company would remain “careful” in the first quarter amid volatile input costs and macro uncertainty, before scaling up spending as conditions stabilise.

Additional investments are also being channelled into integrating the CAMSO off-highway tyre business, with about USD 30 million earmarked for upstream capabilities such as compound mixing and calendering. The integration is expected to be completed by the end of FY27, unlocking margin benefits from FY28.

Record year underpins expansion

The investment push follows a strong FY26 in which CEAT delivered double-digit growth across segments.

Standalone revenue rose 15.5 percent for the full year, while fourth-quarter revenue grew 18.2 percent, crossing INR 150 billion in annual revenue for the first time.

Growth was driven by a combination of volume expansion and pricing, aided by GST rationalisation that improved affordability and boosted demand across replacement and OEM channels.

Replacement demand remained robust, particularly in two-wheelers, while OEM growth was led by passenger vehicles and farm equipment. International operations also rebounded strongly, with high growth in Europe and the U.S.

Profitability milestones

CEAT crossed a key profitability threshold, with EBITDA exceeding INR 20 billion for the first time and margins holding at 13.4 percent for the full year.

Net profit stood at INR 8.12 billion, supported by operating leverage, cost discipline and an improved product mix.

Finance chief Kumar Subbiah said the company’s balance sheet remains “strong enough to provide growth capital”, with debt levels stable at around INR 30 billion  and leverage metrics improving.

Global expansion and premium focus

CEAT is deepening its international footprint, setting up local entities in Germany, the UK, France and Poland to strengthen distribution and customer engagement.

Exports now account for over one-fifth of standalone revenue, rising further when including CAMSO, as the company expands in higher-margin markets.

The tyre maker is also focusing on premiumisation, with increased sales of larger passenger vehicle tyres and high-performance two-wheeler tyres, alongside a growing presence in electric vehicle segments.

Digital and EV strategy

The company is investing in digital infrastructure, including a centralised data lake and AI-led analytics capabilities, aimed at improving operational efficiency and decision-making.

In electric mobility, CEAT holds about 29 percent share in passenger EV OEM tyres and 18% in electric two-wheelers, positioning itself to benefit from the sector’s growth.

Cost headwinds loom

Despite strong fundamentals, CEAT faces mounting cost pressures.

Raw material costs—linked to crude oil and natural rubber—are expected to rise sharply, with management guiding for a 15 percent increase in the first quarter of FY27.

To mitigate the impact, the company is implementing price increases of up to 10 percent in the replacement market, though pass-through in OEM and international segments will occur with a lag.

Executives cautioned that demand may moderate as higher prices take effect, particularly in price-sensitive categories such as commercial vehicles.

Outlook

CEAT expects demand to remain broadly supportive, underpinned by rural cash flows, replacement cycles and ongoing economic activity, though growth is likely to moderate from FY26 levels.

“Structural demand drivers remain in place,” Banerjee said, adding that the company is positioned to navigate near-term volatility while sustaining long-term growth.

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TBC Corporation, one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has elevated Greg Ortega to the role of Chief Purchasing Officer. The promotion places Ortega on the company’s executive team, where he will be responsible for global purchasing strategies and supplier relationships, reporting directly to President and CEO Don Byrd.

With a career at TBC spanning more than three decades beginning in 1996, Ortega brings over 30 years of experience in purchasing, merchandising, product marketing and sales. He most recently served as Group Vice President, overseeing consumer and commercial tyre procurement strategies while strengthening key supplier partnerships. His rise through progressive leadership roles underscores his long-standing impact on the organisation.

Ortega holds a bachelor’s degree from California State University, San Bernardino, as well as advanced degrees from the University of Notre Dame and Michigan State University. He also earned two professional certifications from the Institute for Supply Management: Certified Professional in Supplier Diversity and Certified Professional in Supply Management.

Byrd said, “Greg’s tenure at TBC has given him in-depth knowledge of our business and industry, and in his new role, he will continue to strengthen our company by leading our integrated, enterprise-wide approach to purchasing. Greg has served a critical role in shaping key relationships to support our competitive advantage and positioned us for long-term growth.”

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WACKER has announced a leadership change in its Polymers division, effective 1 May 2026. Maximilian Peter, a doctorate holder in chemical engineering and a company veteran since 2012, assumes the role of the head of Polymers division. His prior experience includes process development, Corporate Development and most recently Human Resources.

On the same date, outgoing Polymers head Peter Summo transitions to lead Sales & Distribution. Summo, who led the division for a decade, brings a business administration background and joined WACKER in 1995 after starting his career at Akzo Nobel. He has since served in multiple management roles.

Peter Summo

The restructuring places both executives in new senior positions, ensuring continuity in polymer operations while refreshing commercial leadership. Summo’s long tenure in the division gives way to Peter’s broader internal track record across engineering, strategy, and personnel functions.

Christian Hartel, CEO, WACKER, said, “With Maximilian Peter and Peter Summo, we are filling two key positions at WACKER with experienced colleagues who have already played a decisive role in using their expertise to shape the company. As head of the Polymers division, Maximilian Peter will continue to drive forward its regional expansion. Peter Summo will continue to forge ahead with WACKER’s market and customer focus and promote sales excellence throughout the company. I wish them both every success in their new roles and look forward to our continued collaboration going forward.”

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Himadri Speciality Chemical Ltd is positioning its tyre business as a key growth driver, backed by calibrated investment, product expansion and a long-term plan to scale operations across domestic and export markets.

The company’s re-entry into the tyre segment through the revival of Birla Tyres marks a strategic diversification beyond its core speciality chemicals and carbon materials business. In its first year of operations, the tyre division generated revenue of INR 1.87 billion, reflecting an early-stage but measured recovery.

Management has outlined an ambitious medium-term target to scale the business to around INR 30 billione in revenue over the next four years, signalling a significant ramp-up in capacity utilisation, distribution reach and product portfolio.

The investment strategy is deliberately phased. The company is prioritising product-market fit, channel expansion and brand repositioning before pursuing volume-led growth. It has already established a distribution base of 43 distributors and more than 1,000 dealers, providing a platform for scale.

“We are approaching the revival of our tyre business in a calibrated manner, focusing first on product-market fit, channel strength and brand positioning before scaling volumes,” said Anurag Choudhary, Chairman, Managing Director And Chief Executive.

At the product level, Himadri is strengthening its presence in agriculture and commercial vehicle segments, where brands such as KalaPatthar and Shaan+ are gaining traction. New launches, including AgriPlus and AgriWin tractor tyre series, are expected to support near-term growth.

Looking ahead, the company plans to expand into passenger car radial tyres, with commissioning targeted over the next 24 months. The strategy will focus on electric vehicle-specific tyres, leveraging Himadri’s expertise in carbon black chemistry to develop higher-performance products with improved durability and efficiency.

“Our objective is not merely to regain market presence, but to build a differentiated and competitive tyre business that can sustainably grow across domestic and select international markets,” Choudhary said.

Capacity expansion and production ramp-up will be aligned closely with demand visibility over the next 12–24 months. The company indicated that utilisation levels will increase progressively, supported by new product introductions across agriculture, mining and commercial vehicle segments.

Alongside manufacturing, Himadri is investing in process improvements and supply chain capabilities to ensure consistent quality as volumes scale. The broader objective is to build a differentiated tyre business rather than pursue rapid expansion at the cost of margins.

Management said the tyre division remains at an early stage but is expected to evolve into a meaningful contributor to overall growth in the coming years, complementing the company’s advanced materials and speciality chemicals portfolio.

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