As the global tyre industry grapples with volatility and intensifying competition, Global Rubber Industries ( GRI) is sharpening its focus on specialisation and sustainability-led innovation. By prioritising value over volume, the company is redefining how growth can be achieved in complex off-highway and agricultural segments.

The global tyre industry is navigating one of its most complex phases in decades. Slowing vehicle registrations, volatile commodity prices, geopolitical uncertainty and intensifying competition are forcing manufacturers to rethink where and how they compete.

For Global Rubber Industries (GRI), the Sri Lanka–based specialist tyre manufacturer, these challenges are not signals to retreat but catalysts to sharpen focus, deepen innovation and redefine value.

In an exclusive interaction with Tyre Trends, Barry Guildford, Global Commercial Director, GRI, said, “The last couple of years have been quite challenging. Particularly if you look at the OE sector, there’s been a real downturn in the number of new vehicles being purchased. Registrations are lower, farmers’ revenues are under pressure and cash flow is a problem.”

Yet, within this disruption, GRI sees opportunity – not in scale-driven volume plays but in specialised segments, sustainability-led innovation and solutions that lower total cost of ownership for customers.

A TOUGH CYCLE BUT CLEAR SHIFTS IN MARKET DIRECTION

Guildford describes the past 12 to 18 months as a period marked by belt-tightening across key end-user industries, particularly agriculture.

“When you see commodity markets for certain crops, it’s impacting revenues from the farmers. There are fewer subsidies available from regional authorities, so generally speaking, it’s been a tough 12 to 18 months,” he explained.

However, beneath the surface, the aftermarket is undergoing important structural shifts. Automation is accelerating across agriculture, while electrification is reshaping material handling.

“At Agritechnica, we saw a lot of automated driving vehicles being launched in the agricultural space,” Guildford noted. “There’s also a trend towards more VF (Very High Flexion) tyres, which is a positive trend for the industry.”

On the industrial side, electrification is no longer niche. “In material handling, especially forklifts, electrification is definitely playing a role. Traditional forklift manufacturers like Linde or Hyster are being challenged by new players from Asia offering electric solutions,” he said.

For tyre makers, these trends demand more than incremental upgrades. “The status quo in the automotive industry is completely shifting, Earlier, Chinese brands had limited penetration in global markets. Now you see many more players entering, especially in developed markets,” Guildford explained.

While this increases choice for customers, it also intensifies competition. “For us as a manufacturer, these are competitors. So it’s even more important that we focus on innovation and solutions,” he said.

SPECIALISATION OVER SCALE: LEARNING FROM INDUSTRY CONSOLIDATION

Recent years have also seen significant consolidation across the global tyre industry, with legacy players divesting businesses to concentrate on core segments. Guildford views this as part of a broader cyclical pattern.

“Many changes in the industry happen in cycles. If you look back 10 or 15 years, premium manufacturers invested heavily in the OHT space. Now some are divesting again,” he said.

In his assessment, complexity has become a decisive factor. “The OHT sector is extremely complex. There are solid tyres, pneumatic tyres, radial tyres and an unbelievable number of combinations in agriculture between tyres and rims,” he said.

This complexity, he believes, has worked in favour of focused specialists. “If you look at the premium sector’s performance in OHT, it’s clear they are losing ground to tier-two players and companies like ours,” he averred.

The reason is simple. “At the end of the day, you need to focus on where you can make money – where the value is. Large manufacturers have enormous divisions focused on PLT, UHP and truck tyres. These are high-volume, high-margin businesses,” Guildford added.

By contrast, specialist segments require deep technical expertise and sustained investment. “That’s why you’re seeing mainstream manufacturers focus more on their core channels, while specialists like GRI double down on OHT and agriculture,” he said.

For GRI, this focus is deliberate. “We are not trying to be everything to everyone. We are building leadership in the segments where innovation really matters,” Guildford said.

SUSTAINABILITY AS STRATEGY, NOT SLOGAN

Few topics have been as overused – and misunderstood – as sustainability. For Guildford, the difference lies in execution. “At first, sustainability was a buzzword. Everybody had to say they were sustainable. But now it’s being taken seriously,” he said.

At GRI, sustainability is not an add-on. “It’s in our DNA. It’s how we differentiate ourselves in a crowded market,” Guildford asserted. That commitment was recently recognised when GRI’s sustainable tyre won multiple international awards, including at ProMAT in Chicago and Automechanika Dubai. “Five or six years ago, we asked ourselves how we could create space in a crowded market. We decided to go on a sustainability journey,” he recalled.

The result was a tyre containing 93.5 percent sustainable materials, designed initially for material handling. “You never know how successful a product will be until you launch it. You design it, test it, evaluate it, place it with end users and then you get feedback,” Guildford admitted.

Winning the ProMAT award was a turning point. “That gave the company a massive boost in confidence. It showed that our R&D had developed something special,” he said.

Automechanika Dubai amplified that recognition. “Here, we are up against the world’s best manufacturers.  And yet, a small entrepreneurial company from Sri Lanka has produced the world’s best tyre,” Guildford said.

GRI won Sustainable Product of the Year and was runner-up for Innovation of the Year. “That is fantastic recognition. Not once, not twice, but three times,” said Guildford.

SELLING VALUE IN A PRICE-SENSITIVE WORLD

Despite the accolades, selling sustainable products in a cost-conscious market remains challenging.

“Sustainable tyres are not cheaper to produce. They are more expensive,” Guildford said candidly.

With higher material and process costs, GRI’s green tyre commands a premium. “You can’t bring it to market at the same price level,” he explained.

So why do customers buy it?

“Because you have to sell value. If you try to sell on price, you will always lose. There will always be someone cheaper,” Guildford replied.

The value proposition rests on performance and measurable impact. “This tyre reduces carbon emissions by 55 percent, certified by Bureau Veritas. It has 93.5 percent sustainable material, and most importantly, it performs better than a standard black tyre,” he explained.

When viewed through total cost of ownership, the equation changes. “If you compare operating costs, it’s actually the cheapest alternative. You pay more upfront, but you get it back in performance,” Guildford explained.

This mindset, he believes, marks a shift in customer behaviour. “If you always buy budget products, you never see the full benefit of premium solutions,” he said.

A FULL INNOVATION PIPELINE AND MEASURED CAPACITY EXPANSION

Looking ahead, GRI’s innovation roadmap is extensive. “We have two or three strategic roadmaps that we are working on,” Guildford revealed.

The sustainability journey is far from complete. “93.5 percent is amazing, but there is still room to go. Our R&D team is already working to push that beyond 95 percent,” he said.

In agriculture, the company is accelerating investment in advanced technologies. “At Agritechnica, we launched our steel-belted products. We will be heavily investing in steel-belted technology and VF going forward,” Guildford said.

Construction tyres are another focus area. “There are elements like L5 that we need to introduce, particularly for this (Middle East) region,” he added.

Behind the scenes, GRI is also reassessing its solid tyre portfolio and brand architecture. “The innovation pipeline is full,” Guildford explained.

Responding to the company’s production expansion plans, Guildford said that expansion will be disciplined rather than rushed.

“At the moment, we have room to grow within our existing infrastructure. We want to reach full capacity before thinking about a new plant,” he replied.

That said, growth may eventually necessitate expansion. “In a three-to-five-year timeframe, if all goes well, then yes, we may look at new facilities,” Guildford said.

As global tyre markets remain volatile, Sri Lanka’s GRI aims for clarity rather than speculative risk. By focusing on specialisation, sustainability and value creation, it is positioning itself not just to weather industry challenges but to reshape expectations within its chosen segments.

“Innovation is not optional anymore. It’s the only way forward,” Guildford concluded.

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India’s growing importance in the global tyre and rubber industry received a strong endorsement with HF Group announcing a EUR 20 million investment in a new state-of-the-art manufacturing facility in Bengaluru.

The announcement was made during the inauguration of HF India’s new Assembly Hall Unit II, a milestone that reflects the company’s long-term commitment to India and its confidence in the country’s manufacturing future.

The proposed greenfield facility will be developed on a 10-acre site near Bengaluru Airport and is scheduled for completion by 2028. Spread across nearly 20,000 sq. metres, the new factory will be almost four times larger than the current assembly operations and will incorporate digital manufacturing, automation, smart production systems, and advanced engineering capabilities.

The upcoming facility will focus on productivity, precision engineering, sustainability, and smart manufacturing while supporting both the Indian market and HF’s global operations. The investment underlines the company’s confidence in India as a major manufacturing hub for the global tyre and rubber industry.

Ian Wilson, Managing Director & Co-CEO, HF Group, said, “This is not the end of our investment in India. It is perhaps the end of the beginning. India is entering a take-off decade and the economy runs on tyres. We see tremendous opportunities for growth and are committed to investing in the future of the Indian market.”

With more than 175 years of global experience, HF Group has steadily strengthened its presence in India. The journey began in 1995 with the establishment of Indus to serve the growing rubber processing industry. The partnership with HF Mixing Group in 2011 brought global mixing technology expertise to India, while the complete acquisition of the Indian subsidiary in 2024 marked another important milestone in the company’s India strategy.

Today, HF India manufactures and supports a broad portfolio of mixing and rubber processing equipment, including intermeshing and tangential mixers, banbury technology, mills, curing presses, and aftermarket services. The company also offers process support, training, upgrades, inspections, and spare parts under its customer-centric philosophy of ‘Holding the Customer’s Hand.’

Emphasising the importance of customer partnerships, Wilson said, “We are not here simply to sell machinery. We want to hold our customers’ hands throughout the entire lifecycle of their equipment and support them through process optimisation, performance improvements and future growth.”

As HF embarks on its next chapter in India, the new facility represents not only an investment in manufacturing capacity but also a long-term commitment to localisation, technology and customer partnerships.

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TBC Corporation (TBC), one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has named Ron Harper as its new Chief Supply Chain Officer. He will report directly to President and CEO Don Byrd and assume responsibility for the company’s entire supply chain function.

Harper brings over 26 years of experience steering global supply chains for multi-billion-dollar enterprises. His most recent role was Executive Vice President of Supply Chain at PrimeSource Building Products, overseeing planning, inventory, repack operations, service metrics and analytics. He has also held senior logistics and strategy positions at Sonepar USA, Nordstrom, Samsung SEA, and JCPenney.

The new chief holds a master’s degree in supply chain management from the University of Denver and a bachelor’s in industrial management from Michigan Technological University. His appointment underscores TBC’s focus on strengthening operational efficiency and logistics performance.

Byrd said, “Ron’s depth of experience in building transformative supply chain solutions aligns with our deep commitment to providing customers with the high-level efficiency, product availability and agility they expect from TBC. As market needs change and demands fluctuate, TBC is continuing to respond by having a supply chain strategy that minimises disruptions and maximises efficiency to ensure the highest levels of customer support and satisfaction.”

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The Rubber Board of India has announced the appointment of N Hari as its new Chairman, effective for a tenure of three years. Hailing from Pallikkathode in Kottayam, Kerala, Hari brings considerable experience to the leadership role, having previously served as a Board member representing small rubber growers from the state.

His initial term on the Board commenced on 28 June 2022 and spanned three years. During this period, he also held the position of Executive Committee Member from 7 October 2023 to 6 October 2024. This progression from membership to the executive committee and now to the chairmanship reflects his sustained engagement with the organisation.

His appointment is expected to steer the Board's initiatives in supporting the rubber sector, focusing on grower welfare and industry development across India.

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The Indian automotive landscape is currently undergoing a seismic shift. Driven by the rapid rise of rural urbanisation, an aggressive government push for electrification and the development of world-class road infrastructure, the industry is witnessing a period of robust growth. With sales of both new and used vehicles touching record highs, the demand for high-quality tyres remains in a significant upswing.

At the helm of one of the market’s most prominent players is Rajarshi Moitra, Managing Director of Bridgestone India and Vice-Chairman, Automotive Tyre Manufacturers’ Association (ATMA).

In an interaction with Tyre Trends, Moitra discusses the company’s future-ready roadmap, from its substantial capacity expansions to a ‘sharp and deep’ strategic focus designed to maintain leadership in an increasingly premium and electrified market.

A BULLISH OUTLOOK ON THE SUBCONTINENT

While global economic indicators remain varied, Moitra is unequivocally optimistic about the local trajectory. “The Indian automotive industry is at an exceptionally positive juncture from a medium-to-long-term perspective,” he asserts.

This optimism is grounded in several structural tailwinds that suggest India is slated for very strong growth. Key among these factors is the sheer room for market expansion.

“Firstly, we are still significantly under-indexed in terms of car penetration, with only 50 cars per 1,000 people – well below even some smaller developing nations,” Moitra explains.

Furthermore, the geographical spread of wealth is changing. Bridgestone is observing massive growth in Tier 2, 3 and 4 towns, a phenomenon Moitra attributes to ‘rural urbanisation’.

Bridgestone India estimates a transformative half-decade ahead for the industry. “The number of affordable households – those capable of purchasing a car – will double in India over the next five year. When you couple this with the government’s massive capital outflow into road connectivity and the rise of e-commerce, it creates a very bullish environment for both passenger and commercial mobility,” Moitra says.

THE ‘SHARP AND DEEP’ STRATEGIC PILLAR

Despite India being the world’s largest two-wheeler market, Bridgestone is famously absent from that segment – and intends to stay that way for now. Moitra clarifies that the company’s philosophy is rooted in specialisation rather than horizontal expansion. “At Bridgestone, we believe in being ‘sharp and deep’ in our strategy,” he says.

Currently, Bridgestone India’s business split is heavily weighted towards the consumer segment, with 70 percent of sales coming from Passenger Car Radial (PCR), 25 percent from Truck and Bus Radial (TBR) and 5 percent from Off-the-Road (OTR) segment.

“We see enough headroom for growth within the passenger car segment across products, channels and customer experience, so we are focusing our resources on maintaining our leadership there,” Moitra notes, dismissing any near-term plans to enter the two-wheeler space.

Instead, the company is doubling down on ‘white spaces’ within the consumer car category, specifically targeting higher rim diameters and specialised compounds for Original Equipment Manufacturers (OEMs).

INVESTING IN CAPACITY AND LOCAL INTELLIGENCE

To support this growth, Bridgestone is moving aggressively on the manufacturing front. With current operations running at 90–95 percent capacity, the company is in the midst of a major investment cycle.

At present, the company’s Pune plant has a capacity to produce 4.01 million passenger car tyres and around 693,000 truck & bus radial tyres, while the Indore plant has a capacity to produce 7.11 million radial tyres for passenger cars and light trucks.

“Our last major investment was USD 85 million in October 2024, which is being ramped up in phases through 2029,” Moitra confirms. This capital is being used to scale volumes and enhance technical capabilities at the Indore factory.

The new investment is expected to further add 1.1 million tyre production capacity in Pune by CY2029, thus taking its total production capacity to around 11.1 million units in the country.

“Our strategy is two-fold: we want to be future-ready for market demand while simultaneously sweating our current assets to drive higher efficiency,” Moitra explains. Crucially, this expansion isn’t just about physical output; it’s about local autonomy. Moitra highlights that a ‘very large part’ of procurement is now local, decided by teams on the ground in India.

The launch of a Satellite Technology Centre in 2025 has further decentralised the company’s innovation engine. According to Moitra, this centre plays a pivotal role in increasing local leverage and technical presence, allowing the Indian arm to maintain a balance between local agility and global sourcing.

EVs AND PREMIUMISATION

As the Indian market matures, consumers are demanding larger wheel sizes – a trend Moitra says is led by OEMs. “We are seeing a clear market shift towards higher inches – for example, a car like the Maruti Suzuki Swift moving from 14-inch to 15-inch and others moving from 16-inch to 17-inch,” he observes.

Bridgestone’s ‘all-inch’ strategy covers the spectrum from 12 to 20 inches, but their brand strength is most potent in these premium, higher-diameter sizes.

This premiumisation dovetails with the transition to electric vehicles (EVs). Bridgestone has positioned itself with an ‘EV-ready’ portfolio, exemplified by the Turanza 6i. “It balances long-lasting durability and safety with low noise and comfort – essential for EVs,” says Moitra. To ensure they capture this nascent but fast-growing market, the company expanded the range from 36 sizes in 2024 to 72 sizes by 2025.

The OEM relationship remains the cornerstone of this technological foresight. “The OEM segment allows us to see ahead of the curve regarding future vehicle technologies,” Moitra explains.

At present, 35 percent of their consumer business is OE-based and Bridgestone is in active discussions with many of the newer automotive entrants arriving in India.

While Bridgestone is aggressively expanding its footprint in new tyre technology and premium consumer segments, it is taking a markedly more conservative approach towards the retreading sector in India. Despite the potential for material circularity, the company does not view retreading as a strategic priority for the immediate future.

Moitra clarifies that Bandag, Bridgestone’s global retreading arm, is not currently active in India, and there are no plans to introduce it in the near-term. This decision is driven largely by the unique and challenging dynamics of the local market, which is currently dominated by cold retreading.

He points out that a significant pricing challenge exists when ‘cold retreads versus biased tyres versus some of the cheaper tyres’ are compared, making the business case difficult to justify at this stage. Consequently, Bridgestone has opted to remain focused on its core segments for the next two to three years rather than entering the retreading space.

SUSTAINABILITY AND THE ‘INSTITUTION OF RESPECT’

Beyond the numbers, Bridgestone is attempting to build what Moitra calls an ‘institution of respect’. This involves a heavy commitment to environmental goals. The Pune plant already holds the distinction of being the first carbon-neutral facility in the Bridgestone group.

“Sustainability is a core agenda across our entire value chain,” Moitra explains, noting a public commitment to reduce the company’s carbon footprint by 50 percent by 2030, including Scope 3 emissions. This holistic approach ranges from manufacturing processes to material circularity in the tyres themselves.

Looking ahead, the goal is to protect a dominant market share – currently over 20 percent by volume and 23 percent by value in the passenger car aftermarket. To do this, Bridgestone plans to expand its physical reach by 30 percent over the next five years, building upon its current network of over 4,000 touchpoints.

As the company transitions its branding from the Olympics to Formula E, the focus remains clear: high performance and the next era of mobility. “It’s the perfect platform to showcase our technological edge,” Moitra concludes.

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