At a critical juncture for India’s automotive sector, Arun Mammen, Vice-Chairman and Managing Director, MRF Ltd, takes over as Chairman of ATMA (Automotive Tyre Manufacturers’ Association) on its Golden Jubilee Year 2025. At a time when the Indian tyre industry is faced with stringent global challenges, Mammen, with experience of more than three decades, takes over to lead the association through a stage of change with technology revolution, sustainability and strategic expansion. In this one-to-one interview, he presents his thoughts on the industry scenario presently, the challenges in the future that lie ahead and what is India’s vision for the tyre manufacturing industry.

How did the Indian tyre industry fare in FY2025?

FY2025 has been a year of consolidation wherein Indian tyre industry showed much resilience. Despite global headwinds, the domestic market showed steady growth, buoyed by robust demand in the replacement segment and gradual recovery in OEM demand. Infrastructure and road development, focus areas in successive budgets, contributed positively to the industry’s performance. While raw material costs remained volatile, prudent cost management strategies helped the companies ride through a challenging year.

The Indian tyre industry has faced persistent challenges with raw material volatility. What concrete steps will ATMA take under your leadership to reduce dependency on imported natural rubber (NR)?

Reducing reliance on imported natural rubber is a key priority of the government as well as the industry. The planting under the INROAD project, a public private partnership aimed at new rubber plantations in 200,000 hectares in North East for enhancing domestic NR production, has entered well into the fifth year. The original target of planting 200,000 hectares of land with rubber will be completed by next year. Plantations supported by INROAD will start yielding from 2027 onwards, which will substantially reduce the production consumption gap of NR in India. Once these trees enter the yielding phase, the domestic NR output will certainly help in reducing NR imports. Meanwhile, ATMA will continue to work closely with the Rubber Board to enhance domestic production through means such as scientific farming practices. We are also working with Rubber Board through INROAD to identify the untapped rubber plantations in the country with an objective to find a way to start tapping them.

In spite of government efforts, the demand-supply gap of domestic natural rubber persists. How do you envision bridging this underlying supply hurdle?

Bridging the demand-supply gap requires a multipronged approach. First, improving productivity through agri-extension services and quality planting materials. We are promoting climate-resistant and high-yield clones through the INROAD project. Second, increasing farmer income by improving NR quality to make rubber farming viable. With iSPEED, a project of INROAD to improve quality of rubber produced in the country, we aim at significantly improving the quality of rubber produced in the country within next five years, which will substantially improve the income generation of the rubber farmers. Third, a long-term roadmap involving plantation expansion is essential. ATMA will continue to advocate for policy reforms and a long-term vision to build domestic industry and farmer confidence.

Indian export front has witnessed a peak in exports of tyres in recent years. Still, most export markets are fighting hard now. What will happen to export trends in coming months?

Global uncertainty may temper growth in the short term, but the structural competitiveness of Indian tyre manufacturers – cost efficiency, quality and compliance with international benchmarks – remains intact. While exports may stabilise in traditional markets, we expect opportunities to emerge in new geographies, particularly in Africa, Latin America and Southeast Asia. ATMA is actively engaging with the government to improve export competitiveness and bilateral trade facilitation.

There have been no tyres from China in the last two years. How has that benefitted the Indian tyre industry?

The restriction of Chinese tyres has helped provide a level playing field for domestic players, especially in the truck and bus radial (TBR) segment and also helped in stopping import of poor quality, cheap truck bias tyres which were unsafe to operate under heavy loading conditions in India, compared to the Indian bias tyres which are designed to meet the domestic service conditions. It has accelerated capacity utilisation, encouraged fresh investments and enabled Indian brands to increase their footprint in both replacement and OEM markets. More importantly, it has strengthened the ecosystem for local innovation and quality standards.

Now BIS certification is compulsory for tyre machines being sold in India. How will it help the industry? Also, there are numerous foreign tyre machine manufacturers who are finding it difficult to register and get the certification. As the apex body of the Indian tyre industry, will you assist them in this regard?

BIS certification ensures consistency in machine quality and enhances safety, efficiency and reliability in manufacturing. As tyre production gathers momentum, more avenues will open for machine manufacturers. ATMA, with the support of Department of Heavy Industry (DHI) has facilitated knowledge sharing sessions and interaction between the policy makers and machinery manufacturers, both domestic and international suppliers.

Global leading tyre manufacturers are shifting away from large-scale production of small-size tyres (14” to 18”) towards larger tyres or establishing a stronger presence in premium segments. Is there a sweet spot for Asian tyre companies, particularly Indian, in the global market?

With our cost advantage, strong engineering base and growing R&D capabilities, Indian companies are well positioned to become reliable suppliers in the volume segment, even as we continuously scale up in the premium niches. End-of-life tyre disposal is still not organised in India, even with regulations. Why has the industry failed to develop efficient recycling infrastructure, and what’s your strategy to deal with this environmental risk? The EPR regulations are a step in the right direction, but the ecosystem is still evolving in the country. ATMA is working on creating an industry-wide platform for end-of-life tyre traceability, supporting sustainable disposal technologies and partnering with recyclers to build a viable circular economy model. We are liaisoning with the authorities to create pollution-free ELT disposal by the recyclers. ATMA member companies are helping the pollution control department through auditing the process of recyclers to speed up setting checks and balance in this sector. ATMA is also following up with the government to ban import of used tyres, for the purpose of pyrolysis, into the country.

Increasing logistics costs are tightening industry margins. What are the infrastructural bottlenecks that most deeply affect the tyre industry, and how are you approaching government stakeholders to resolve them?

High road freight costs, port congestion and insufficient rail-freight linkages are key concerns. We are in discussions with the government to improve multimodal transport connectivity, optimise freight corridors and simplify port logistics. Faster clearances and digital infrastructure can significantly lower turnaround time and costs. ATMA continues to be an active participant for policy formulation in this domain.

Some of the world’s major tyre makers have become carbon neutral in their businesses. Why are Indian companies not following suit, and how will ATMA propel sustainability?

Sustainability is a top priority, and many Indian tyre majors have already made significant strides in renewable energy usage, water recycling and carbon reduction. While carbon neutrality takes time and scale, we’re moving in that direction. ATMA is working on a sustainability roadmap to support industry players with benchmarks, best practices and technology collaboration to accelerate green transitions.

What could be the major challenge for the tyre industry in the near future and how do you plan to overcome it?

We need to look at the challenges for tyre industry along with that of the auto industry. With sustainability gaining traction and Euro 7 and BS7 standards likely to kick off in 2026/27, auto industry may have to work overtime to meet the proposed deadlines. Transition to non-fossil fuel combustion engine, hybrid engine and EV will gain traction. There could also be some standards on tread road wear particle emission (TRWPE) although there is no clear statistics to establish the current quantity of TRWP emission. In this regard, we should be careful not to copy / paste any European legislation without considering India specific challenges. For example, India is still a major bias tyre market and there are a large number of loyal customers for this product. Instead of replacing bias tyre entirely by radial tyre, we should focus on specific interventions to make bias tyre bridge the gap with radial tyre.As far as TRWP is concerned, we will have to admit that Indian road surface as well as road terrain is totally different from Europe. So this subject need a much larger study. To begin with we need to establish a proper data base to understand and work on the problem. We are sure that we will soon find a solution for all the above problems.

How do you see FY2026?

FY26 is expected to be a growth year, supported by robust infrastructure spending and sustained vehicle demand. While global macro challenges remain, the Indian tyre industry’s fundamentals are strong. Digitisation, innovation and sustainability will be our key focus areas as we aim to position India as a global hub for quality tyre manufacturing.

Vietnam’s growing role as a global tyre manufacturing base is creating new opportunities for domestic producers, but breaking into established international markets remains difficult. Da Nang Rubber Joint Stock Company is expanding exports and production capacity while confronting larger Chinese rivals on price and established global manufacturers on technology, distribution and brand strength. General Director Le Hoang Khanh Nhut tells Tyre Trends that competing globally will require Vietnamese manufacturers to move beyond cost advantages and demonstrate quality, operating efficiency and long-term customer value.

Southeast Asian tyre manufacturers have evolved as an aggressive competitor in the global tyre race. Tyre makers from China, Vietnam, India, Thailand etc. are constantly competing for a share of the bigger pie. While one nations tyre manufacturer competes on price advantage, another competes on quality.

The tyre manufacturing scene in Vietnam resonates quality and pricing in the global stage. But that is not the end of the story. On one hand, many manufacturers from other countries are leveraging the strategical importance of Vietnam for pushing products into international markets.

And on the other hand, trade tariffs and anti-dumping duties are creating hurdles for such companies. “Trade defence measures, anti-dumping actions, rules of origin and tariff changes have become ongoing factors in export management,” said Da Nang Rubber Joint Stock Company (DRC) General Director Le Hoang Khanh Nhut during an exclusive interaction with Tyre Trends magazine.

He confidently stated that DRC closely monitors each market to select appropriate products, pricing structures, distribution partners and production plans while ensuring that origin documentation, technical compliance and trade compliance are properly standardised.

“Trade barriers can increase costs and risks, but they can also create opportunities when customers seek to diversify their supply sources beyond a single country. The pre-requisite is that Vietnamese companies maintain transparency regarding origin, control their supply chains and retain genuine competitiveness,” he quipped.

Explaining the current situation within the country’s broader market economics, a confident Nhut averred that Vietnam’s expanding infrastructure, logistics network and export connectivity are creating favourable conditions for tyre manufacturers operating in the country.

He added that the country was investing heavily in highways, transportation and logistics infrastructure. That development is supporting both domestic demand and the country’s ambitions to become a manufacturing and distribution hub for global markets.

For DRC, the expansion of Vietnamese tyre manufacturers into global markets will depend less on competing solely on price and more on leveraging manufacturing experience and product quality.

Asked how Vietnamese manufacturers could compete with Chinese tyre makers, which often operate with larger research and development budgets, Nhut said, “The strategy is to focus on experience and quality rather than entering a price-led competition. We don’t follow the price competitively like Chinese companies.”

STRATEGIC PLACEMENT

International markets, especially Europe and America, are crucial to Vietnamese tyre manufacturers including DRC. The company states that the US is an established and important export market.

In April 2024, DRC signed an export agreement with Oceanside One Trading covering Brazil and the US with the stated aim of increasing exports to those markets.

Europe is strategically important but not one of its mature core markets yet. The company’s 2024 annual report explicitly states that it aims to increase its market share in Europe.

Nonetheless, the local market assumes a similar importance for the company. “The domestic market remains a strategic foundation for us. It is where the brand has been built over several decades. We have an extensive distribution network here and the market helps us maintain a balanced production volume,” said Nhut.

Le Hoang Khanh Nhut, General Director, Da Nang Rubber Joint Stock Company (DRC)

However, the challenges include periods of weaker purchasing power, strong competition from imported products and FDI-based companies and pricing pressure. “Unlike many export markets, Vietnam has a fragmented distribution structure; customers are price-sensitive but also place strong importance on durability, product availability and warranty response time,” explained Nhut.

On the broader spectrum of market-linked business advantages, the country has become a manufacturing base for many international tyre manufacturers. “Vietnam has several practical advantages including a favourable location for exports, access to many markets through FTAs, an increasingly skilled technical workforce and a developing supporting-industry ecosystem,” stated Nhut.

DRC perceives these advantages are complemented by accumulated manufacturing experience, a domestic brand, an established workforce and a production management system that is being modernised.

“However, we still face disadvantages in terms of economies of scale, the degree of self-sufficiency in strategic raw materials, logistics costs, supply-chain depth and resources available for foundational technologies compared with China, Thailand, Indonesia or India. These areas need to be addressed through focused investment and supply-chain integration,” he noted.

INTERNATIONAL TUSSLE

DRC’s manufacturing operations are based in Da Nang, where it operates separate facilities for different tyre categories. Nhut cited production covering passenger car tyres, motorcycle and bicycle tyres, agricultural tyres, OTR products and other categories.

The chief executive estimated its overall production at around five million tyres. And in recent years, its international business has seen clear growth in both scale and geographical reach.

By the end of 2024, export turnover had exceeded USD 100 million, and its products are currently present in more than 50 countries and territories including markets with high standards such as the US, Europe, Japan, South Korea and Brazil.

“Our focus remains on strengthening markets where we already have a solid foundation, particularly in the Americas and developed markets, while selectively expanding into regions with significant room for growth,” contended Nhut.

He added that demand is shifting towards greater emphasis on consistent quality, durability, operational efficiency, reliable supply and technical compliance. Therefore, exporting is no longer simply about selling products but about building the capability to serve markets over the long term.

Nonetheless, Chinese tyre companies are a much stronger competitor in international markets for Vietnamese counterparts. Explaining how DRC navigates the challenge of competing head-to-head with Chinese tyre markets, Nhut said, “The expansion of Chinese tyres has intensified price competition in the replacement market, particularly in mainstream segments. This has created direct pressure on selling prices and margins across the industry.”

“We do not compete solely on price and focus on consistent quality, durability, technical service and real-world operating efficiency to retain customers. The market has indeed become more challenging, but it also creates opportunities for manufacturers that demonstrate product lifecycle value, consistently meet delivery commitments and reliable after-sales support,” he added.

GLOBAL STRONGHOLD

According to Nhut, DRC’s strongest international growth opportunities are in segments where it already has capabilities and credibility that include radial truck and bus tyres, industrial and agricultural tyres and speciality tyres.

“The expansion of radial truck tyre capacity to one million tyres per year is an important step in increasing our ability to serve the market. At the same time, we need to continue shifting our product mix towards higher-value products with higher technical requirements, durability and specialisation,” he added.

Product lines for next-generation vehicles and technical rubber products are also focus areas for the company. It also does not consider expanding the product portfolio to be an objective in itself. It must be aligned with research and developmental capabilities, investment efficiency and market demand.

The investment sentiment within the country’s tyre industry is also seeing heightened demand. It has attracted significant investment and substantially increased production capacity.

But the additional investment in Vietnam’s tyre industry is both an opportunity and a source of pressure, said Nhut.

“The opportunity lies in improvements to the supply chain, technical workforce, logistics services and Vietnam’s attractiveness as a manufacturing base. The pressure comes from greater competition for skilled labour, raw materials, customers and quality standards,” he added.

The company, however, views the current situation as a driving force to improve productivity, enhance quality and penetrate its own brand deeper into markets.

And to become a major name in the global tyre market, the company needs to shift from a mindset of exporting products to building a brand and the capability to serve international markets, contended an excited Nhut.

“The focus should be on maintaining consistent quality; investing in research and development; green manufacturing technologies; developing higher value-added segments; building sufficiently strong distribution and after-sales networks in key markets; applying international standards in

quality, ESG, trade compliance and data management and strengthening global human resources capabilities,” added the executive.

Expanding radial production capacity is necessary, but ultimately, success lies in DRC’s ability to build long-term trust in quality, operating efficiency and responsibility towards customers worldwide, noted the executive.

PERSISTENT HURDLES

The biggest challenge for DRC is competing with groups that have significantly greater scale, larger research and development budgets, distribution networks and purchasing power for raw materials.

According to Nhut, Chinese companies have advantages in terms of price and speed. Japanese, Korean and European companies are strong in technology, branding and OEM relationships, while Indian companies have scale advantages in certain segments.

He further noted that DRC’s strengths lie in its longstanding experience in radial truck, bias, agricultural and speciality tyres; its flexibility in responding to market needs; proven quality in many demanding markets and manufacturing base in Vietnam.

However, scale remains a limitation when it comes to long-term research and development investment, rapidly expanding after-sales networks, maintaining regional inventories and increasing global brand recognition.

“We cannot compete with multi-national groups in terms of the scale of research and development spending. Therefore, our approach is to focus resources on issues that have a direct impact on customers and production efficiency,” explained Nhut.

He added, “Our priorities include tyre structure and rubber compound design to improve durability, reduce heat generation, enhance load-carrying capability and improve fuel efficiency. Optimisation of radial products, development of products for emerging needs such as electric vehicles, high-speed tyres and specialty products as well as automation, digitalisation, traceability and green manufacturing are also priorities.”

The company also places strong emphasis on strengthening its engineering team, technical cooperation and shortening the cycle from testing to commercialisation.

Customers are increasingly evaluating tyres based on total cost of ownership rather than simply the initial purchase price. And to convince international fleets and distributors, DRC needs to speak through operating data rather than relying solely on catalogues.

“We are increasing real-world testing and monitoring mileage, wear, fuel consumption, incident rates and reusability or recyclability depending on the product line. Based on this data, we work with distributors to provide technical advice, clear warranty policies and rapid feedback,” stated Nhut.

The objective of the company is to help its customers see a product with a reasonable purchase price that lasts longer, operates more consistently and reduces vehicle downtime to create greater value over its entire lifecycle.

The company has a retreading facility and stated that some casings can be retreaded two or three times.

FORWARD PATH

Nhut expects Southeast Asian tyre manufacturers to continue expanding their presence in global markets.

“Over the next 3–5 years, significant room for growth lies in replacement markets with demand for radial truck tyres, agricultural, industrial and speciality tyres as well as among customers seeking a stable and diversified source of supply outside traditional manufacturing centres,” said Nhut.

The Americas, selected European markets, the Middle East, Africa and Latin America all need to be approached selectively based on trade conditions and service capabilities, he added.

The factors limiting faster expansion include the need to build distribution networks, inventory, after-sales support and local technical certifications together with working capital requirements, foreign-exchange risks, logistics and trade barriers.

“These are long-term investments and cannot be pursued at the expense of sustainable growth,” noted Nhut.

Asked how manufacturers from Vietnam and other Asian markets could position themselves against established European tyre makers, DRC said its focus would be on expanding its market presence rather than retreating from competition with larger international manufacturers.

The current situation in Vietnam reflects a broader shift in the tyre manufacturing landscape, with Asian producers increasingly seeking opportunities in overseas markets while established manufacturers face changing cost structures and production strategies.

Vietnam’s emergence as a competitive tyre manufacturing base gives DRC a platform for international expansion, but geography, trade access and manufacturing costs alone will not secure a global stronghold.

The bigger test is whether the company can translate rising capacity and decades of production experience into stronger technology, distribution, after-sales support and brand recognition.

As competition intensifies and trade barriers multiply, DRC’s global ambitions will increasingly depend on proving lifecycle value rather than simply offering another competitively priced alternative from Asia.

HF Group has received Continental’s Supplier Award for Tyre Manufacturing Equipment 2025 in the Service, Maintenance & Repair category, recognising its work delivered  during the year.

The award acknowledges the contribution of HF Group’s mixing and curing teams across multiple deliveries, service assignments and engineering projects undertaken with Continental in 2025.

To mark the recognition, Continental invited the award winners to an Experience Day at its Contidrom test facility near Hanover on recently. The event gave attendees an opportunity to experience Continental’s tyre technology and drive on the test track.

HF Group was represented by André Arends, Garlef Dombrowski, Florian Droege and Peter Hummel.

The company thanked Continental for the award and recognised the expertise and collaboration of its teams in delivering the work.

ATIRE, a leading Sri Lankan Solid tyre maker, has appointed Thierry Miche as director of OEM and product, effective September 2026, bringing more than 25 years of experience in the global tyre and mobility industry to the role.

At ATIRE, Miche will lead the company's OEM and product activities, focusing on portfolio development, OEM relationships and expansion into new technical and commercial markets globally.

Miche joins from Michelin, where he spent 26 years in senior product and operational leadership positions, including roles at Solideal and Camso before their integration into the French group.

His most recent position was product Management Director for Beyond Road, with global strategic and operational responsibility for the product portfolio. He led teams across Belgium, Canada, France and the US, working with research and development, industrialisation, original equipment manufacturer (OEM) and aftermarket sales, and supply chain functions.

Previously, Miche was Product Line Executive Director For material handling, overseeing the global product platform and holding full profit and loss responsibility for three manufacturing sites in Belgium, Germany and the US. He also led global research and development teams in Belgium and Sri Lanka.

His career has spanned product management and engineering, technical support, warranty management, quality assurance and systems. The experience covers the development and delivery of products across engineering, industrialisation, validation, sales and supply chain operations.