In the state-of-the-art facilities of Huai’an, China, cutting-edge automated production lines craft precision steel cord that will soon strengthen tyres rolling across India’s expanding highway network. For Zenith Steel Group, a USD 28 billion steel and technology leader, these gleaming threads represent an exciting opportunity to support India’s remarkable automotive growth story.

The opportunity is extraordinary. India’s steel cord market, currently at 200,000 tonnes annually, is set to nearly double within a decade as the world’s largest democracy accelerates its infrastructure development and vehicle ownership continues its impressive rise. For Zenith, recognised among China’s top 500 enterprises, partnering with India’s growth represents a natural strategic alignment.

“India is a ‘must win’ place for us,” enthuses Sheng Rongsheng, CEO of Zenith’s International Business, highlighting the company’s commitment to supporting what executives view as the world’s most promising automotive market.

The timing reflects India’s automotive evolution success story. The country’s tyre industry is experiencing a remarkable transformation from traditional technologies to advanced radial systems, creating unprecedented opportunities for innovative steel cord solutions. This transition has generated significant demand while showcasing India’s unique engineering capabilities in adapting global technologies to local requirements.

Zenith’s expansion into India exemplifies positive global collaboration trends. As companies worldwide embrace supply chain diversification, the Chinese innovator’s investment in India demonstrates how international partnerships can deliver mutual benefits through technology transfer and competitive alternatives.

The initiative promises substantial advantages for Indian tyre manufacturers, including access to advanced manufacturing technologies, competitive pricing options and enhanced supply chain resilience. For Zenith, success in India represents validation of its evolution from regional producer to global technology partner.

With India’s automotive sector poised for continued expansion, this collaboration highlights how international expertise can support domestic growth while fostering innovation across the global tyre industry.

In the sprawling industrial complex of Huai’an, China, massive automated production lines hum with precision, producing fine steel cord that glistens like gold yet is strong enough to reinforce truck tyres that traverse India’s expanding highway network. This is the manufacturing heart of Zenith Steel Group’s ambitious global expansion, and India is squarely in its crosshairs.

The USD 28 billion Chinese steel conglomerate, which ranked 175th among China’s top 500 enterprises in 2022, is making calculated moves to capture a significant share of the global (and also India’s) growing tyre reinforcement materials market. With plans to reach 1.6 million tonnes of annual production capacity for high-strength steel cord, bead wire and hose wire, Zenith is positioning itself as a formidable competitor in a market currently dominated by a single established player.

“Our ambition is to become the leader in the worldwide steel cord industry, and needless to say, India plays a critical role in our global strategy given the fact that it has the largest population in the world, and therefore, we believe its market potential on top of today’s sizeable demand of about 200 kt a year is bigger than anybody else. So India is a ‘must win’ place for us,” says Sheng Rongsheng, CEO of Zenith’s International Business.

This strategic push comes at a time when India’s tyre industry is rapidly evolving, driven by infrastructure improvements, vehicle market growth and increasing tyre radialisation rates. The timing appears opportune but breaking into India’s notoriously challenging market will test Zenith’s technical capabilities, localisation strategies and cost competitiveness in what industry experts describe as one of the world’s most demanding tyre markets.

EVOLUTION OF INDIA’S STEEL CORD MARKET

India’s steel cord market has undergone dramatic transformation in recent decades, evolving from a predominantly bias tyre market to increasingly adopting radial technology, which requires steel cord reinforcement.

“The Indian market is one of the few markets where bias tyres have been successful and still are in certain segments. This is due to road and usage conditions like loading and tyre inflation pressures,” explains Srikanth Chakravarthy, Designated Partner and Managing Director of Zenith India, who is representing Zenith in India after spending over 25 years in the steel cord business. “However, over the last three decades, road infrastructure has evolved quite rapidly not only in terms of new roads but quality of highways as well. This helped radialisation and therefore the demand of steel cord in India.”

This transition has created significant market opportunities but also unique challenges. Indian tyre manufacturers have developed distinctively local requirements that differ from global standards, driven by the country’s specific road conditions and vehicle usage patterns.

“Steel tyre cord itself has seen an evolution with initial designs being an outcome of international designs and choices and foreign collaborations. But Indian tyre makers were quick to study local requirements and design in-house leading to rapid product portfolio changes that saw the needle moving, for instance on tensile, from normal tensile to high tensile and now super and ultra tensile,” Chakravarthy notes. “The evolution has been also in terms of the design of cords that are more lightweight, stronger and now there is a big focus on sustainable solutions embracing circularity and reduced Co₂ emissions.”

According to the company, Zenith is already engaging with multiple Indian tyre manufacturers including Apollo Tyres, MRF, JK Tyre, CEAT, BKT, ATG, MPTL (Ascenso) and Ralson, and also with international players like Yokohama, Goodyear, Bridgestone and Continental. Several companies including JK and BKT have confirmed homologation approvals, marking critical early success for Zenith’s market entry strategy.  

Industry analysts estimate that India’s steel cord market is currently around 200,000 tonnes annually with significant growth, almost double, expected in the coming decade as vehicle ownership continues to expand and tyre radialisation rates increase, particularly in the commercial vehicle segment.

THREE-PRONGED STRATEGY

Zenith’s approach to the Indian market follows a carefully staged strategy that balances immediate export opportunities with long-term localisation goals. The company’s leadership team is clear about the methodical approach they’re taking.

“The approach can be divided into three parts,” explains Chakravarthy. “In the short term, the focus is on getting all approvals done quickly from the plant base in Huai’an. In the medium term, as commercial sales initiate, it is to offer outstanding service with warehousing, consignment stock, local technical service, co-development and efficient logistics. In the long term, the plan is to explore partnerships that enable a local footprint or a non-China-based footprint that can continue to offer the full value proposition with the added advantage of local presence.”

This methodical approach reflects Zenith’s understanding of Indian market requirements, where local presence is often a key differentiator. The company is already responding to specific customer requests for enhanced service offerings as Kelfen Zhu, International Sales Director, acknowledges, “Local warehousing has been mentioned by Indian customers, Zenith is seriously working on the solution.”

While the company currently manufactures in China with no production facilities in India, its leadership is clearly signalling future localisation plans that could include partnerships or direct investment. “To become No.1 in this market over time, there are two steps to go: first to become No.1 among all the import players, then when condition allows, to build up local production capacity and eventually become No.1 among all the steel cord suppliers to this market,” shares Rongsheng, outlining the company’s ambitious goals.

The timeline for such moves remains undefined but appears to be part of a long-term vision rather than an immediate priority. Chakravarthy suggests, “As mentioned before, this is part of the long-term strategy and we are already talking to several local players. In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market.”

QUALITY MANAGEMENT: THE CORNERSTONE OF CUSTOMER ACQUISITION

For Zenith, quality management represents the foundation of its customer acquisition strategy in India. The company received IATF 16949 certification in February 2024 alongside ISO 9001, ISO 14001 and ISO 45001 certifications – credentials that are essential for supplying to global and Indian tyre manufacturers.

“Zenith is committed to building a robust quality management system that is customer-centric, process-oriented and integrates advanced digital solutions to realise full-process traceability and intelligent decision-making based on AI model,” states Bian Keping, Quality Manager at Zenith Steel.

This quality management system adopts both reactive and pro-active approaches to customer feedback. “For reactive way, we respond quickly to customer complaint if and when some failure happened at customer side. The systematic problem-solving mechanism, i.e. 8D methodology, would be triggered to resolve the issues. For pro-active way, we collect customers’ voice via plant visit, technical forum, questionnaire etc. we also seek feedback with an open mind when customers visit us for audits and visit. All VOC will be seriously summarised, analysed and archived to guide both product development and process improvement process,” says Keping. The company claims particular innovation in addressing common defect issues that plague tyre manufacturers. Keping adds, “Till now, Zenith doesn’t have local plant in India. For plants in China, we have introduced lots of error-proof solutions to cope with typical defects at customers sides, e.g. short-length, broken welding, cord formation defects and etc., which can definitely enhance customer satisfaction in India.”

One specific innovation highlighted by the quality team is particularly relevant to Indian manufacturing conditions. “Especially for tip-rise issue, Zenith is the first steel cord manufacturer world-wide to realise non-manual testing of residual torsion of TC spool, which can improve the accuracy and reliability of torsion testing results and significantly reduce the risk of tip-rise,” says Keping. This focus on tip-rise issues appears strategically targeted as Zhu confirms. “Tip-rise is a concern for customers right from trial stage. Professional local technical presence can clear the concern with immediate post-sales follow up and communication,” he says.  

R&D CAPABILITIES: ADDRESSING INDIA’S UNIQUE REQUIREMENTS

Zenith’s research and development strategy for India focuses on developing products that address specific challenges in the Indian market, particularly the need for tyres that can withstand heavy loads, variable road conditions and cost pressures.

Dr Wang Aiping , Head of R&D at Zenith, outlines the company’s approach: “Our approach is to develop higher strength steel cord such as ST/UT and new steel cord with better fatigue performance. We will also develop customised steel cord with certain requirements like better rubber penetration and provide advanced test service such as aged adhesion, fatigue, rubber penetration etc.”

The company appears to be investing significantly in its research and development capabilities for the Indian market with Dr Aiping indicating that at least three percent of sales income will be allocated to R&D expenditures focused on Indian operations, depending on the progress.

This research and development strategy emphasises both performance and cost considerations, reflecting an understanding of the unique price-performance demands of the Indian market. “We will focus more on both steel cord strength and fatigue performance with tyre overload condition. We will also acquire experienced senior steel cord application expertise,” Dr Aiping notes when describing how Zenith’s research and development approach differs from competitors in addressing Indian market needs.

The integration of sustainability into product development also appears to be a key differentiator for Zenith’s research and development strategy. The company is developing a carbon emission management platform tailored for Indian industries to help monitor, report and reduce emissions, supporting compliance with national ESG and carbon credit regulations. “Our research and development efforts are focused on higher strength steel cord development including ultra-tensile (UT) and mega-tensile (MT) variants, which reduce material usage and enhance fuel efficiency for automotive applications,” notes Dr Aiping.

Zenith is also introducing steel cords manufactured from high scrap ratio wire rods (≥60%), promoting circular manufacturing and reducing the carbon footprint in line with India’s green steel and recycling policies.

It is evident that tyre manufacturers globally are increasingly focused on sustainability metrics, driven by both regulatory requirements and market demand for reduced environmental impact. Zenith’s emphasis on carbon footprint measurement and recycled content appears designed to address this emerging requirement in the Indian market.

THE INTELLIGENT FACTORY

Zenith’s manufacturing capabilities represent a central pillar of its value proposition to Indian customers. The company has invested heavily in creating what it describes as an ’Intelligent Factory’ in Huai’an, featuring advanced robotics, automated material handling systems and advanced process controls.

Chakravarthy, who has extensive experience in the steel cord industry, makes a bold claim about these facilities stating, “I have spent nearly 2.5 decades in the steel cord business and I have not seen a plant as modern, efficient and sophisticated in the steel cord business like the Zenith plant in Huai’an.”

This manufacturing sophistication appears designed to address two critical requirements for the Indian market, namely consistent quality and cost competitiveness. The automated systems promise reduced variability, while scale and efficiency aim to deliver competitive pricing despite the logistical challenges of serving India from China.

A distinctive feature of Zenith’s manufacturing approach is its emphasis on traceability and carbon emissions management. The company has developed what it calls an ‘Integrated Carbon Emission Management System’ that provides product carbon footprint data at the SKU level with third-party verification. This system allows Zenith to provide tyre manufacturers with detailed emissions data for their supply chain reporting – an increasingly important consideration for global tyre companies and their automotive customers.

“Zenith invested much more in automation and digitalisation than any other competitors. With these technologies in place, we can definitely create extra value for our customers. One example here is the product traceability, and we are the only one in the industry who is able to realise full process information traceability, from the wire rod to the finished goods,” notes Rongsheng when discussing important technology transfers to Indian operations.

Industry experts observe that manufacturing scale is increasingly important in the capital-intensive steel cord industry, where economies of scale drive cost competitiveness. Zenith’s ambitious capacity expansion plans, which will see it reach 1.6 million tonnes of annual production capacity across multiple plants, position the company as the largest global producers of steel cord and bead wire.

CHALLENGE OF COST COMPETITIVENESS

Despite its technological and quality advantages, Zenith faces significant challenges in achieving the cost competitiveness demanded by Indian tyre manufacturers, who operate in one of the world’s most price-sensitive markets.

Chakravarthy is forthright about this challenge. He says, “A challenge of local steel cord being cost competitive with international options is a matter of concern to the tyre industry. Also, the world of technology is rapidly evolving, and we must acknowledge that in this industry the Chinese players have made significant strides and therefore offer an equally superior infrastructure and sustainable solutions, but scale of economy will be a challenge for time to come.”

Indian tyre customers have particularly demanding requirements as Chakravarthy explains. “Indian tyre makers have a unique challenge to make the best tyre that is abuse proof, high performing, absolutely reliable, sustainable, safe, giving the best fuel efficiency and longest tyre life at the lowest cost. It might sound ridiculous, but this is reality, and Indian tyre makers have constantly risen to this challenge and developed the radial tyre market this way,” he says.

Meeting these challenging requirements while maintaining competitive pricing is the central challenge for Zenith’s India strategy. Chakravarthy emphasises that Indian customers expect steel cord partners to have a focus on innovation, consistent quality (low variations), intervention-free processability, traceability of carbon emissions, recycled content in steel cord without compromising quality and above all cost competitiveness.

BUILDING LOCAL PRESENCE

Recognising the importance of local presence, Zenith is planning to establish a technical and commercial team in India in the second half of 2025. “A professional local team with senior experts from industry will be built in H2 2025,” according to Zhu.

In the meantime, the company is leveraging its regional presence with Zhu noting that Zenith’s customer service representatives in SEA countries can back up Indian market whenever required.

This gradual approach to building local presence appears designed to match resources with market development progress. Chakravarthy acknowledges that it is only three months that he is associated with Zenith and the focus is on introducing the company, having tyre customers visit and audit the facility as they conduct approvals. “Our talent acquisition and development will be based on the various stages of growth as mentioned earlier and we will not settle for anything less than the best,” he says.

The company’s commitment to local presence seems rooted in an understanding of the Indian market’s preference for local technical support and service responsiveness. “Think global and act local is the way to go,” says Rongsheng. “We understand that India is a very demanding market; we will for sure deliver our products with the best quality, in cooperation with Sri and his team, who is by far the best local partner we could have in this region. As time goes by, we will build up local warehouses in order to foster delivery flexibilities to our customers,” he adds.

A STRATEGIC DIFFERENTIATOR

A distinctive feature of Zenith’s market approach is its design integration on sustainability and carbon emissions. The company transports its wire rod by water ways, reducing its C02 emissions per tonne per km significantly vs road transport. The use of energy efficient motors, solar power on site, optimal plant   layout maximising efficiency with Co2 capture at every stage is what sets the Huai’an plant apart. This, coupled with the deployment of sophisticated systems for tracking and reporting carbon emissions throughout the production process, offers tyre manufacturers detailed data for their sustainability reporting.

The company’s investments in sustainability technologies reflect growing market demand for environmentally responsible manufacturing practices. One of the biggest challenges for carbon emission management is to understand carbon emission in Scope 3. The carbon emission management system of Zenith integrates all product carbon footprint data throughout the supply chain, from raw material sourcing to product distribution.

GLOBAL COMPETITION AND MARKET POSITIONING

Zenith’s push into India comes amid broader global trends of supply chain diversification and regionalisation in the steel and automotive supply chains. Global trade tensions, shipping disruptions and sustainability considerations are all driving tyre manufacturers to seek more resilient and localised supply networks.

This context creates both opportunity and urgency for Zenith’s India strategy. On one hand, tyre manufacturers are actively seeking supply alternatives to reduce concentration risk. On the other hand, competitors are also pursuing similar strategies, creating a race to establish market position.

The company’s aggressive capacity expansion in China – investing in projects totalling 1.6 million tonnes of annual production, a full-fledged R&D facility, integrated steel manufacturing, access to harbour, talented work force – positions it to serve not only India but global markets too. This scale could provide advantages in new technology development, raw material sourcing and manufacturing efficiency that benefit the Indian business.

However, relying exclusively on exports from China also creates vulnerability, particularly if trade tensions or shipping constraints resurface. This reality likely explains Zenith’s interest in eventually establishing non-China production capacities, potentially including India itself.

Industry experts note that India’s government has been actively encouraging greater localisation of manufacturing across various industries including automotive components. This policy direction could create both incentives and pressures for Zenith to accelerate its plans for local production capabilities in India.

CUSTOMER ENGAGEMENT

Zenith’s approach to the Indian market emphasises close technical collaboration with tyre manufacturers, recognising the unique requirements of the Indian market and the value of co-development in addressing these needs.

“We organise technical forum with customers’ research and development team to listen to their concerns and feedback. For some critical issues, management team will assign corresponding resource to cope with,” the company’s Quality Manager notes when describing collaboration with research and development to improve product quality.

This collaborative approach appears designed to address the specific technical challenges faced by Indian tyre manufacturers, who must design products for uniquely challenging operating conditions. “Indian customers value reliability, cost-effectiveness and localised post-sales support. Zenith prioritises trust-building through transparent communication, joint problem-solving and tailor-made new product development,” notes Zhu.

“The company’s research and development team is also focused on supporting this collaborative approach with plans to have regular technical meeting and build-up co-operation project with certain customer,” according to Dr Aiping.

GROWTH PROJECTIONS

Zenith’s current production capacity and expansion plans are substantial, reflecting the company’s global ambitions. According to the company, Zenith expects to reach around 500,000 tonnes of sales in 2025 and over 800,000 tonnes in 2026. This rapid scaling of production capacity underscores the company’s global ambitions.

The company’s manufacturing facilities are organised into multiple plants, each focusing on specific product lines:

• Plant 1: 240,000 tonnes/year of steel cord (full operation)
• Plant 2: 300,000 tonnes/year of bead wire (3/6 lines installed)
• Plant 7: 280,000 tonnes/year of steel cord (800 tonnes/day)
• Plant 6: 280,000 tonnes/year of steel cord (construction started in April 2024)
• Plants 3 and 5: 500,000 tonnes/year of steel cord (to be launched in 2025/2026)

This capacity expansion is backed by substantial investment with the company noting that it will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow. ”Zenith’s state-of-the-art production facilities and its very experienced team guarantee high product quality as well as stability. Because of its large production  capacity, Zenith has a strong economy of scale and therefore is able to offer very competitive prices to Indian customers. Zenith will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow,” adds Rongsheng.

AMBITIONS AND REALISM

Zenith’s ambitions for the Indian market are clearly substantial, but so are the challenges. The company faces competition not only from the established local player but also from other global steel cord manufacturers eyeing India’s growth potential.

Chakravarthy sees the opportunity for Zenith to become a very strong alternative that allows India to offer higher value to the automotive OEMs and replacement market. He suggests that what Zenith could offer the Indian tyre industry is an extremely cost-competitive source that is able to provide the most modern technology, efficiency, highest levels of quality, deep innovation and enough volumes to support the growth of Indian market requirements in the years to come.

However, realising this vision requires executing across multiple dimensions simultaneously including building customer relationships, establishing local presence, ensuring cost competitiveness and eventually pursuing local manufacturing partnerships.

The company’s leadership appears clear-eyed about both the opportunities and challenges. “India can only become more important for Zenith in the future. It’s a growing market and the demand is going up every year. You cannot find this promising trend in those mature or developed markets,” says Rongsheng.

For the Indian market specifically, success will ultimately be measured by commercial performance and customer acceptance. While several Indian tyre manufacturers are already engaging with Zenith for approvals and trials, converting these initial engagements into substantial, regular supply relationships represents the true test of the company’s strategy.

As Chakravarthy puts it, “Being a steel cord player, where approvals themselves take a couple of years or more, requires a long-term vision and commitment. The level of commitment can simply be measured by how much investment a company is making for catering to the future needs of the industry. Zenith’s investments are not only towards securing volume needs of the Indian tyre industry but also fulfilling evolving technological, quality, sustainable and economic viability needs. “

A NEW FORCE

As Zenith advances its India strategy, the company appears poised to become a significant force in the country’s steel cord market. Its combination of manufacturing scale, technical capabilities and strategic focus on Indian requirements positions it well to challenge existing suppliers and support the continued growth of India’s tyre industry.

 “It is not an easy road, and the only way to succeed is to collaborate with the best in the industry who can address all these aspects, not just some of these aspects,” Chakravarthy observes, capturing both the opportunity and challenge that lies ahead for Zenith in India.

For Indian customers, Zenith’s entry marks the first ever steel cord supplier who is backward integrated with steelmaking offering complete control on quality and scale and capacity and thereby supports a unique value proposition built on the principles of quality, sustainability, innovation, service and cost competitiveness. For Zenith, success in India represents not just a commercial opportunity but a strategic imperative as the company seeks to transform from a China-focused producer to a truly global steel cord supplier.

As the company enters its next phase of market development in India, all eyes will be on its ability to deliver on the twin promises of quality and cost competitiveness that define success in this demanding market. With its ambitious capacity expansion plans, investments in advanced manufacturing technologies and growing engagement with Indian customers, Zenith appears determined to establish itself as a long-term player in India’s evolving steel cord landscape.

“India presents a growth market in the long term with a strong case for doubling its steel cord demand within the decade. Unlike some global manufacturing platforms that are largely export dependent, India has a healthy domestic market with a continued and healthy growth projection both for domestic and exports,” Chakravarthy noted, summarising the strategic rationale behind Zenith’s India push.

In the global context of supply chain diversification and growing emphasis on sustainability, Zenith’s investment in India reflects broader trends reshaping the steel and automotive supply chains. The company’s success or failure in India will serve as a case study in how Chinese manufacturers can navigate the complex process of expanding beyond their home market into challenging but potentially rewarding growth markets.

As one industry analyst put it, “The entry of players like Zenith brings much-needed competition to India’s steel cord market. If they can deliver on their promises of quality, cost and eventually local manufacturing, Indian tyre makers stand to benefit significantly from an expanded and more competitive supplier base.”

The months and years ahead will reveal whether this confidence is justified and whether Zenith can translate its ambitious plans into market reality in one of the world’s most challenging and promising tyre markets.

THE PATH FORWARD: STRATEGIC IMPERATIVES AND CHALLENGES

As Zenith advances its India strategy, several key imperatives and challenges emerge from the company’s approach:

1. Balancing global scale with local adaptation: Zenith must leverage its global scale while adapting to the specific requirements of the Indian market. “Think global and act local’ is the way to go,” as Rongsheng puts it.

2. Establishing local presence: Building a local technical and commercial team will be crucial for addressing Indian customers’ expectations for responsive service and support. “Professional local team with senior experts from industry will be built in 2H’2025,” according to Zhu.

3. Ensuring cost competitiveness: Despite technological advantages, Zenith must deliver competitive pricing to succeed in India’s price-sensitive market. “The Indian consumers are a price and value sensitive market, and therefore it is not sufficient to just have a local footprint without addressing the key questions of cost competitiveness, sustainability and technology sufficiently,” Chakravarthy notes.

4. Developing market-specific products: India’s unique road conditions and vehicle usage patterns require specialised steel cord solutions. “To consider both steel cord strength and fatigue performance with tyre overload condition,” Dr Aiping emphasises.

5. Building long-term partnerships: Success in India will require strong relationships with tyre manufacturers and potentially local manufacturing partners. “In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market,” Chakravarthy suggests.

The Japanese Tyre Maker Combines Operations, Eyes Second-Place Position in Off-The-Road (OTR) Tyre Segment.

Yokohama Rubber Co. is betting big on heavy machinery tyres. The Japanese manufacturer completed its USD 905 million acquisition of Goodyear Tyre & Rubber Co.’s off-the-road (OTR) tyre business in February and has already begun an aggressive expansion strategy that includes a USD 35 million Romanian plant purchase and the appointment of veteran industry executive Loic Ravasio to lead the combined operations.

These moves elevate Yokohama to third in the global OTR market, but ambitions are set higher. Loic Ravasio, now president of Yokohama’s combined OTR business, has made it clear that the goal is to become the world’s second-largest supplier of specialised tyres for mining and construction.

“The essence of the acquisition is to grow and gain market share and not only to maintain our 3rd position but aim to be number two in the near future,” Ravasio said. “We have the people, the knowledge and the products for it.”

The acquisition represents the largest strategic investment under Yokohama’s ‘Hockey Stick Growth’ initiative, part of its Yokohama Transformation 2026 medium-term management plan. The deal brought Yokohama not just Goodyear’s extensive product lineup – spanning tyre diameters from 25 inches to ultra-large 63-inch models – but also advanced manufacturing technologies, established brand recognition and approximately 500 specialised employees.

STRATEGIC COMPLEMENTARITY

Goodyear OTR achieved USD 678 million of annual sales as of fiscal 2023, bringing important scale to Yokohama’s off-highway tyre business. However, above and beyond the revenue increase, Ravasio highlights how the two operations are complementary both geographically and in terms of product specialisation.

“The two businesses literally complement each other from a product point of view as well as presence point of view,” Ravasio explained. “Goodyear OTR is strong in Europe, APAC and Canada, whereas Yokohama OTR is strong in the US and Japan. Goodyear OTR has excellent ultra large haulage tyres, whereas Yokohama has mobile crane and port tyres.”

This product and geographic synergy is the basis for Yokohama’s strategic challenge to entrenched market leader Michelin and Bridgestone. The merged company now has what Ravasio terms “a broad, complete OTR portfolio offering from the smallest to the biggest tyres, delivering top performance and services in any application.”

The integration extends beyond product lines to leverage operational efficiencies in procurement, manufacturing, finance and legal operations. Yokohama has preserved the key intellectual property, seasoned personnel and service capabilities that made the Goodyear OTR business worth acquiring while introducing its global organisational strengths to increase operational effectiveness.

EUROPEAN EXPANSION STRATEGY

Yokohama’s drive for expansion was evident just months after it sealed the acquisition of the Goodyear OTR business. In May 2025, the company paid USD 35 million to purchase fixed assets, including land, buildings and manufacturing equipment, at a closed tyre factory in Drobeta-Turnu Severin, Romania.

The facility, Yokohama’s first significant European production site for OTR tyres, covers 200,000 square metres and will manufacture the full range of mining and construction tyres, including ultra-large sizes for global mining operations.

“The Romanian asset is a first step in the expansion,” Ravasio said. “We will be producing most of the OTR range in this factory, including the ultra-large tyres. We are working diligently on assessing solutions such as green field and/or brown field at the right locations to further grow and better serve our customers.”

The Romanian investment timing is part of a larger market trend behind the demand for OTR tyres. Global infrastructure development in roads, rails and residential projects continues to grow with the transition towards the green economy, which necessitates huge volumes of mineral extraction to produce electric vehicle batteries and renewable energy systems.

“These growing needs are driven by a growing world population that needs more housing, more roads, more communication means, plus the push for green(er) economy with the electrification of the world,” Ravasio noted.

INNOVATION THROUGH DUAL R&D CENTRES

The acquisition provides Yokohama with two R&D facilities, one in Japan and the other in the US. Rather than merging them, the company will utilise both to accelerate innovation and share best practices globally.

“Having two R&D centres will accelerate and intensify our innovation while learning best practices and continuously improve our overall performance,” Ravasio explained. The collaboration has already yielded practical benefits, with engineers able to combine Yokohama OTR casings (the structural base of the tyre) with Goodyear OTR tread compounds to enhance tyre performance.

The dual-centre approach addresses the complex technical challenges in OTR tyre development. These products must withstand extreme operating conditions while delivering optimal performance metrics that directly impact customers’ operational costs. As Ravasio puts it, “OTR tyres remain a complex assemblage of diverse technologies and solutions to deliver the required performance.”

Innovation priorities are driven to address changing customer needs for performance, sustainability and service. Industry pressure towards ‘Faster/Further/Heavier’ operations creates greater stress on tyre manufacturers to produce products capable of supporting more rigorous applications while being reliable and cost-effective.

MARKET DYNAMICS AND CUSTOMER EVOLUTION

Different principles from consumer tyres drive the OTR tyre business. Buyers – mainly from the mining, construction and infrastructure sectors – prioritise the total cost of ownership, which presents opportunities for manufacturers focused on durability and service.

“The OTR tyre market is very dynamic by nature. The industry has always been driven by the best cost of ownership,” Ravasio said. “The products, services and solutions provided must help our customers to optimise their operations.”

This emphasis on operational efficiency has grown stronger as customers are under pressure to be more efficient and less environmentally aggressive. Environmental concerns now influence the choice of tyres, prompting manufacturers to develop solutions that offer both performance and environmental friendliness.

Yokohama’s sustainability strategies involve lower-resistance compounds, improved materials, energy-efficient manufacturing and total retreading solutions. It has the industry’s sole OTR retread factory owned by a tyre manufacturer, and through this, it offers customers the opportunity to extend tyre life and minimise waste.

INTEGRATION CHALLENGES AND OPPORTUNITIES

Successfully integrating two large tyre operations presents significant operational and cultural challenges. Yokohama’s approach prioritises continuity for both customers and employees during the transition period.

“Our immediate priorities are and always will be our customers and our employees,” Ravasio emphasised. “For our customers, we aim to ensure a smooth transition, business continuity and a combined, more comprehensive portfolio of products, services and solutions to support them in their business growth.”

Employee integration focuses on creating development opportunities within a larger global organisation. Yokohama retained all Goodyear OTR personnel, recognising that their expertise and customer relationships represent much of the acquisition’s value.

“The critical parts of this acquisition were the IP knowledge, the experience and the people more than the equipment and the products. We kept all of that,” Ravasio said. The company has established a global leadership team combining experienced executives from both organisations to design the integrated structure and manage the transition process.

FINANCIAL TARGETS AND GROWTH STRATEGY

Yokohama prioritises market share gains and customer satisfaction over raw revenue for the merged OTR business. The growth strategy focuses on targeted investments in key geographies and technologies to enhance performance and quality at a cost-effective level.

The financial effect of the acquisition will start to be reflected in Yokohama’s consolidated performance from the first quarter of 2025. The company is now determining the exact earnings contribution as the integration continues.

Ravasio’s appointment to the post of president of the merged OTR operations marks a commitment by Yokohama to aggressive expansion. Ravasio reports to Nitin Mantri, Co-Chief Operating Officer and Head of the Off-Highway Tyre Unit, and will leverage his global tyre industry expertise to lead the next phase of growth.

“I’m humbled and excited to take on this important role at Yokohama, a company focused on growth and expansion,” Ravasio said upon his appointment. “We have a great future ahead, with the best associates in the industry and an outstanding value proposition to serve our customers.”

FUTURE MARKET POSITION

The long-term development curve of the global OTR tyre market underpins Yokohama’s ambitious expansion goals. The development of world infrastructure and the mineral extraction needs of the unfolding green economy transition are expected to sustain demand for heavy-duty tyres in various applications.

Yokohama aims to capitalise on OTR market growth to steal share from larger rivals. By combining Yokohama’s operations, Goodyear’s customer base and expertise and targeted manufacturing investment, executives believe they have a winning formula.

“As we invest in growth, our expansion strategy is based on the right location and the right technology/equipment to deliver top performance and quality and the right cost,” Ravasio explained.

The global reach of the company offers flexibility to supply customers in diverse markets while maximising production and distribution networks. With secure positions in complementary geographic locations and product categories, the integrated operation can provide end-to-end solutions to multinational customers engaged in multiple markets.

INDUSTRY OUTLOOK AND COMPETITIVE RESPONSE

The next three to five years will pose a challenge to Yokohama’s capacity to implement its aggressive growth strategy in a more competitive market. Its peers will not surrender market share without reacting to Yokohama’s improved competitive footing.

Achievement will depend on continued technological progress in tyre compounds, manufacturing techniques and digital technology to achieve progressively higher performance standards. The development of the industry towards more sustainable, more technologically sophisticated products presents opportunities as well as challenges for all producers.

“In the today and tomorrow of the OTR tyre market, it will be crucial to continue innovating in compounding, manufacturing processes and digital technologies to meet the evolving and stringent needs of the industry,” Ravasio observed.

Yokohama’s dual R&D centres and expanded global presence provide tools to compete effectively. Still, execution will determine whether the company can achieve its goal of becoming the world’s second-largest OTR tyre supplier.

For now, the company expresses confidence in their strategy and capabilities. As Ravasio puts it: “We look forward to celebrating it when we will be a strong number two in the near future.”

Alena Bauer has assumed leadership of Continental’s PR and internal communications for its tyre replacement business across Europe, the Middle East and Africa (EMEA) with effect from 1 June 2025. This appointment finalises the integration of the company’s internal and external communications teams under a unified structure.

Bauer brings 15 years of international communications expertise, including roles as Media Relations Manager at MTU Maintenance, Senior PR and Internal Communications Manager at RICOH Germany and Head of Marketing at Redaktionsnetzwerk Deutschland. She joined Continental in her most recent position overseeing internal communications for Tires EMEA. In her expanded role, Bauer now reports to Egemen Atış, Continental Tires EMEA’s Head of Strategy, Analytics and Marketing, reinforcing the strategic alignment of communications across the region.

Egemen Atış, Head of Strategy, Analytics & Marketing, Continental Tires EMEA, said, "By combining our internal and external communications, we are creating an integrated communications structure that optimises synergies. Alena Bauer has extensive experience in both areas and knows how to combine strategic communication with a clear understanding of target groups and messages. Under her leadership, the team will communicate our content consistently, efficiently and effectively across all channels, both internally and externally.”

Apollo Tyres is set to further strengthen its winter tyre and outdoor tyre testing capabilities with the inauguration of its new outdoor tyre testing facility at Invalo, Finland.

The new facility is being developed under a long-term agreement with UTAC, a globally recognised automotive testing and certification group, which also will incorporate exclusive, tailor-made infrastructure, dedicated tracks for real-world testing conditions.  

Daniele Lorenzetti, Chief Technology Officer, Apollo Tyres, said, “This is a strategic investment in autonomy, efficiency and agility. With this test track fully dedicated to us in UTAC proving grounds, we eliminate bottlenecks, increase our cost-effectiveness, gain full control of test schedules, and empower our teams to iterate and validate products, both Apollo and Vredestein brand, on their terms – especially during the critical winter season.”

The facility's primary focus will be on testing the snow and ice performance of both Apollo and Vredestein brand tyres. This investment is part of a broader strategy by Apollo to strengthen its development programs in the face of increasing regulatory oversight and unpredictable weather patterns. The new facility is set to be fully operational by December 2025 and will immediately begin supporting the development of current and future tyre lines.

As global demand for high-performance and sustainable speciality tyres rises, Indian manufacturers are stepping up, and CEAT is not behind. With a bold ambition to derive a quarter of its revenue from international markets, the company is leveraging deep farmer insights, advanced research and development capabilities and a quality-first mindset to penetrate competitive regions like Europe and North America. Its growing presence among global OEMs, automation-led manufacturing and entry into OTR segments signal a strategic evolution aimed at long-term global leadership.

The international tyre markets are getting ripe for Indian tyre makers. Every major tyre maker in the country is vying for a piece of share in European and American markets. While Europe has been predominantly the go-to market for Indian brands, recent expansions have led giants like CEAT explore speciality tyre markets in North and South America too. And the reason for a successful ride is its farmer and quality-first approach.

Speaking exclusively to Tyre Trends, Amit Tolani, Chief Executive at CEAT Specialty, said, “We’re aiming for 25 percent of our revenue to come from international markets. Currently, our key markets for exports include Europe, North America and Brazil in South America. Apart from these, South Africa and Australia round out our top five regions for off-highway tyres (OHT).”

CEAT has been steadily investing in capacity to ensure that it can meet demand across volumes and variety as it’s essential to have a complete product portfolio and sufficient production capacity to cater to these markets effectively.

“Our growth strategy for OHT revolves around completing the range, beyond agriculture and entering product white spaces where we have minimal offerings. This will help us deepen our presence in existing markets, enter new ones and diversify our portfolio further,” added Tolani.

However, the executive acknowledged that capturing the OHT tyre market in Europe is not an easy task considering its high competition. “In OHT, the first priority is to have a full-range product offering. We decided early on that we must become a one-stop shop. If our distributor or partner can’t find all their SKUs with us, they’ll look elsewhere. Today, we cover 70–80 percent of the SKU

range needed across major geographies. The remaining long tail is large in number and we’re actively working to close those gaps,” explained Tolani.

Differentiation is the next piece. CEAT’s quality-first approach has enabled it to enter international as well as local OEMs. Validating its tyres through OEMs is a rigorous process, but it gives customers and farmers confidence in product quality.

Europe is currently the larger market for the company as a cluster, but it’s growing rapidly in North America, especially in Canada, where it supplies to many OEMs and is present in the replacement market as well. In the US, it follows a multi-distribution strategy with good channel coverage.

EVOLVING DEMANDS

Tolani noted that there is an increasing demand for technologically advanced tyres in these markets due to changes in farm machinery. And to satiate it, CEAT offers increased flexion (IF) and very high flexion (VF) tyres. These tyres flex more, improving soil contact and resulting in higher farm productivity. Both technologies are designed to allow tyres to carry heavier loads at lower inflation pressures. VF offers greater flexibility than IF, translating into better soil protection and improved traction.

Citing an example of working closely with OEMs, Tolani said, “Farms in Brazil are often located on sloped terrain. One OEM there asked for tyres that wouldn’t skid on gradients and we developed custom sizes and tread designs to meet this specific need. We work closely with OEMs and end users to understand such requirements and develop tailored solutions. This farmer-first approach underpins our research and product development.”

The executive also noted a trend of de-premiumisation in agricultural tyres as farmers are moving away from traditional premium brands and leaning towards quality players like CEAT, especially as the performance gap has narrowed significantly.

“We now deliver nearly comparable performance at more accessible price points. So our value proposition, which is quality-first products at competitive prices, resonates well, particularly in uncertain market conditions with rising tariffs and volatility. Even in slowdown years, Indian brands like ours have grown in global markets. We believe this trend will continue and CEAT is well-positioned to benefit from it,” averred a confident Tolani.

The company’s penetration in these markets starts with an OE-first approach, wherein farmers see the tyres on OEM-fitted equipment, which builds trust in the brand. This naturally drives traction in the replacement market.

The tyre maker is also expanding country-wise and region-wise, ensuring it has a strong on-ground teams across Europe, North America and South America to deepen the market presence.

AUTOMATION AND SHARE

The world of tyre manufacturing is unequivocally leaning towards automation for reducing downtime and increasing production efficiency. Riding on these two pillars, global giants have reorganised internal processes, and Indian tyre makers, including CEAT, are not shy of such advancements.

“Our Ambernath plant has a high level of automation. Unlike traditional OHT plants that rely on heavy manual labour, our facility is run by highly trained women operators, which is proof of how advanced and safe our systems are. With just the push of a button, they can produce high-performance tyres,” said the executive.

He added, “Our plant is unique in that it supports highly flexible production. We can manufacture single units based on customer demand. That’s rare in this industry and is a significant competitive edge in meeting varied and low-volume speciality requirements.”

CEAT has dedicated vendor capacity for tyre moulds too. Since it serves a wide range of OEMs globally, turnaround time is critical. It works with trusted partners in India and abroad, who are aligned with its well-structured annual and monthly planning cycles. For complex or urgent requirements, it co-develops solutions with these partners.

Currently, CEAT has a combined manufacturing capacity of approximately 350 tonnes per day in the speciality segment.

Commenting on current market challenges in the segment, Tolani explained that serving OEMs requires agility as their specifications change quickly, especially if a particular vehicle model needs to be revised or discontinued. CEAT’s ability to handle smaller lot sizes and fast turnaround helps it stay ahead.

In the aftermarket, its biggest challenge is awareness. “Farmers in Eastern India, where rice is cultivated in flooded fields, need different tyres than those used in drier regions. We’ve developed tyres specifically for rice puddling and now the task is to educate the farmer on why this new design performs better than conventional options. We conduct field meets and demos to bridge that knowledge gap,” noted the executive.

He also divulged that selling speciality tyres is a different ballgame compared to passenger or commercial tyres. It’s highly consultative and requires deep technical knowledge. Some of CEAT’s international sales professionals have over 30 years of experience in the segment.

“We have a healthy mix of seasoned professionals, mid-career talent and freshers. We also deploy product specialists in key markets like Europe and North America, who train and support the front-line sales teams. Our research and development team are closely involved in this process as well,” contended Tolani.

EXPANSION PLANS

Currently, CEAT’s revenue split in the OHT segment is around 60 percent domestic and 40 percent international. It aims to increase the international share in the near future.

“We’re now expanding into construction and mining (OTR) tyres. This segment accounts for nearly 70 percent of the OHT market, while agriculture makes up the remaining 30 percent. The next big step for us is manufacturing all-steel radial OTR tyres,” said Tolani.

He added, “We’re upgrading our Ambernath plant to start production of these tyres. Testing will begin this year, followed by phased market entry. This expansion is critical not only to enter a new category but to become a one-stop shop for our channel partners.”

Sharing the reasons for entering the segment, Tolani said that being present across categories gives the company more share of wallet and with India’s ongoing infrastructure boom, there’s significant domestic demand as well. So, while exports remain a priority, the Indian market for OTR steel is also ripe with opportunity.

Over the next five years, CEAT aims to establish itself as a significant global player in agriculture, OTR and track segments. “We plan to increase our international footprint and continue building on our philosophy of innovation, speed and customer-centricity. With the planned acquisition of Camso, we will have access to global customers and product portfolio of construction OTR and tracks, thus accelerating our white space coverage,” quipped Tolani.

He also noted a trend of consolidation within the global tyre sector: “We’ve already seen large global groups acquiring speciality players. Material handling and solid tyres are also part of this trend. The real opportunity lies in how the segment evolves and premiums over time. That’s where differentiation and depth of capability will matter most.”

Backed by farmer insight, technological depth and a nimble, quality-first mindset, CEAT is redefining what it means to be a global Indian tyre brand. With bold moves into OTR and international markets, its speciality tyre journey is only just gaining traction. n

INNOVATIVE SOLUTIONS COMING UP NEXT!

CEAT is investing heavily in research and development for speciality tyres and has also achieved commendable feats. It currently manufactures the world’s largest agricultural tyre by size, claimed Tolani.

“We developed it for an OEM in Canada. We also make the world’s widest sprayer tyre. Developing them required significant engineering. We’re constantly working on new sizes, technologies like VF and IF, custom tread designs and machine-specific applications,” he contended.

The company’s approach to innovative solution is demand-led as it inculcates the needs of OEMs and farmers within the development scene and responds with highly specific, performance-driven innovation. Whether it’s anti-skid designs for Brazilian slopes or sprayer tyres with large footprints, its research and development team is geared towards meeting future agricultural demands.

Moreover, the company has an 80 percent sustainable agricultural tyre made from sustainable materials. It’s currently undergoing testing at Finland and will be officially launched at the upcoming Agritechnica exhibition. This is one of the major innovations the company is excited about.

“We’re also collaborating with our partners to develop intelligent tyres for port applications. These tyres will be equipped with embedded chips that enable real-time tracking of usage, wear patterns and operational hours, transforming them into smart, connected components of port machinery,” divulged Tolani.

In the past, CEAT has partnered with an Israeli start-up to develop cup-wheel and airless tyres. “There’s a lot of innovation happening in this space, especially because downtime is so critical for farmers. We often think of tyre downtime from the perspective of a car or truck owner, but when a farmer’s tractor stops in the middle of a field, it’s a major operational and emotional setback. We’re focused on reducing that risk through smarter and more resilient products,” contended Tolani.

The manufacturer is also seeing a shift in the industry towards electric tractors and machines, which require higher torque and frequent stop-start movement. That means specialised compounds and tyre designs, and it has developed a dedicated range to meet those needs as well.

Commenting on the company’s research and development strength, Tolani explained, “Most of our research and development happens in Mumbai, India, but we also have a strong global setup. We have a design and validation centre in Germany and a satellite design cell in Israel that contributes valuable inputs. In India, our core research and development is centred at our new research and development hub in Ambernath. Additionally, we utilise our research and development facilities in Chennai and Halol for materials, compounding and simulations.”

The executive also thinks that sustainable materials in speciality tyres is not just a trend but a necessity. He acknowledged that sustainable inputs are costly and require significant investment in research and development, but global warming is not a theoretical issue anymore. Consumers, especially in Europe, are becoming far more conscious.

“Sustainable materials in tyres may be expensive today, but with scale and progress, we expect cost normalisation. CEAT is committed to this journey and wants to give customers that choice,” Tolani concluded.

With a sharp focus on performance, precision and sustainability, CEAT is redefining the future of speciality tyres through customer-led innovation. Its global research and development network and strategic collaborations signal a long-term commitment to smarter, greener mobility solutions.