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.

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KraussMaffei Group is set to implement a leadership transition at its subsidiary, KraussMaffei Technologies, with a change at the board level. Jörg Stech, who has served as Chairman of the Board and global head of injection moulding, automation and additive manufacturing since 2023, will be departing on 31 March 2026 at his own request. He will be succeeded by Dirk Musser, the current Head of Group Transformation at the parent company, who has been appointed as the new Managing Director effective 1 April 2026. The leadership handover between Stech and Musser is already in progress, ensuring a seamless transition.

Stech’s tenure unfolded during a difficult economic period marked by financial losses and a contracting market. He responded with decisive measures aimed at margin enhancement and balance sheet improvement, which laid the groundwork for the company's long-term stability. Under his direction, the product lineup for injection moulding and automation was revitalised with the introduction of the LRXplus linear robot, the fully electric PX series and the MC7 control system, all launched in late 2025 alongside new artificial intelligence tools. He also launched a multi-year development initiative and pushed the company into new markets, such as aerospace and drone technology, by leveraging expertise in specialised processes like ColorForm. Through a focus on operational excellence, pricing discipline and capital efficiency, Stech guided the company to a significantly more resilient position compared to three years prior, despite the persistent downturn in injection moulding.

Musser brings to his new role extensive experience in transformation and finance. In his current capacity, he has already been closely involved with KraussMaffei Technologies, collaborating with its leadership to drive strategic initiatives and enhance operational performance. His qualifications include sharp analytical abilities, a strong grasp of industrial processes and a broad international perspective. An economist by training, Musser has accumulated over 20 years of leadership experience across various technology and industrial sectors. His background includes leading major transformation and turnaround projects at CRRC New Material Technologies, where he stabilised plant earnings in North America, as well as directing operational and financial restructurings during his time at Deloitte. He has also held roles with P&L responsibility, managing global supply chains and post-merger integrations at CRONIMET and has prior experience with automotive manufacturers including Daimler and Fujian Benz Automotive in China.

Alex Li, CEO, KraussMaffei Group, said, "Jörg Stech took on responsibility in a difficult situation, set clear priorities and launched decisive initiatives. The successful market launch of the LRXplus linear robot and the all-electric PX machine series, the consistent focus on profitability and the sustainable strengthening of our balance sheet are visible results of this work. We would like to express our sincere thanks to Jörg Stech for his leadership, integrity and team spirit. We value Dirk Musser as a leader who combines strategic clarity with operational excellence. In a short period of time, he has provided vital impetus for the transformation of the group and impresses with his analytical strength, decisiveness and deep understanding of our processes – not least through his successful collaboration with the managing directors of KraussMaffei Technologies. We are convinced that he will continue on this path with clarity and creative drive to successfully align KraussMaffei Technologies."

Stech said, "After many years in an environment full of technological, economic and geopolitical challenges, I look back with great gratitude on a time in which I was always surrounded by an exceptional workforce. Together, we achieved things that many initially thought were impossible. This cooperation, this willingness to push boundaries and create something new, was a joy for me. My special thanks go to all stakeholders in the company and, of course, to all employees. I leave with respect, gratitude and the conviction that this long-established company will continue to achieve great things in the future."

Musser said, "Together with my fellow managing directors Dr Frank Szimmat and Markus Bauer, I want to resolutely drive forward the further development of KraussMaffei Technologies. Our focus is on further expanding stability and performance and taking the necessary steps to successfully position the company in a dynamic market environment. I look forward to shaping this path together with our teams.”

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Italian tyre manufacturer Pirelli has announced that Dario Marrafuschi will become the Head of its Motorsport Business Unit, effective 1 March. He succeeds Mario Isola, who will remain with the company until 1 July to assist with the leadership transition.

Marrafuschi joined Pirelli in 2008 and has held positions within the Formula 1 Research and Development department. Most recently, he led the development of the company's road products.

He will report to Giovanni Tronchetti Provera, Executive Vice-President of Sustainability, New Mobility & Motorsport. The appointment comes as the company continues its role as the tyre supplier for various global motorsport categories.

Isola departs the company following a tenure that included the expansion of Pirelli’s motorsport operations. The company stated that Isola will pursue other professional opportunities following his departure in July.

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For Continental Tires India, the passenger vehicle market in India is entering a phase where scale and structure are finally aligning with its longstanding premium ambitions. Passenger vehicle sales reached a record 4.3 million units in 2024, expanding by 4–5 percent year on year, but it is the composition of that growth – rather than the headline volume – that is reshaping the company’s strategy. Utility vehicles now account for approximately 58 percent of total passenger vehicle sales, up sharply from about 51 percent the previous year, cementing SUVs and crossovers as the dominant force in the market.

This structural shift has direct consequences for tyre manufacturers operating at the upper end of the value spectrum. Larger vehicles bring higher kerb weights, bigger wheel diameters and greater expectations around refinement, safety and performance. For Continental, the change represents not merely an increase in addressable demand but a decisive move towards tyre categories where technology differentiation and pricing discipline can coexist.

Samir Gupta, Managing Director of Continental Tires India, calls this phase a turning point, not a temporary high. He says the surge in utility vehicles – driven by electrification and more premium cars – fundamentally changes the economics of the passenger tyre market in India.

“Let me clarify one thing first. The utility vehicle segment is no longer small. Last year, around 60 percent of passenger vehicles sold in India were utility vehicles, and including first-time buyers upgrading within this segment, the share goes beyond 65 percent,” Gupta says.

Industry data broadly supports this assessment. SUVs alone contributed close to three-fifths of all passenger vehicle sales in 2024, with compact utility vehicles accounting for a significant share of incremental volumes. The overall passenger vehicle market, at around 4.3 million units, has thus become structurally skewed towards larger formats – an inflection with long-term implications for tyre sizing, load ratings and product mix.

This shift shows in replacement demand. As vehicle footprints grow, rim diameters are increasing. “The market is clearly moving from smaller to bigger rim sizes. Demand for 17-inch and above tyres is rising sharply,” Gupta says. While these tyres are still a minority, their growth far outpaces the overall passenger tyre market.

Electrification is accelerating the shift. A substantial proportion of electric passenger vehicles sold in India today are SUVs, and Continental expects EVs to account for more than 50 percent of the passenger vehicle segment within five years. For tyre manufacturers, this creates new technical requirements – higher torque tolerance, lower rolling resistance and stringent noise control. “That creates a significant opportunity for us because our strengths lie in premium, high-performance tyres,” Gupta says.

Despite these favourable structural trends, premium tyres have historically struggled to gain traction in India. For much of the past decade, the market remained intensely price-sensitive, with tyres treated largely as commoditised replacement items. Continental’s response, Gupta explains, has been consistent rather than tactical pricing. “Right from the beginning, we have focused on fair pricing. The idea is simple – if we can clearly differentiate on performance and consistently deliver on those promises, price recovery will follow,” he explains.

The broader environment is now becoming more supportive. As vehicle prices rise and consumers migrate towards larger, more sophisticated vehicles, willingness to spend on tyres that enhance safety, comfort and driving confidence is increasing. This trend is also evident at the top end of the market. Premium and luxury passenger vehicle sales reached approximately 51,500 units in 2024, up around 6 percent year on year and crossing the 50,000-unit threshold for the first time – a symbolic marker of premium consumption in India.

Gupta sees premiumisation extending beyond luxury vehicles. “Earlier, India was extremely price-sensitive, but that is changing in higher segments. Consumers are upgrading vehicles and are more willing to invest in tyres that enhance safety, comfort and confidence,” he says.

The intensification of competition, with global premium tyre brands expanding or re-entering India, is viewed as a positive development. “Competition is always good,” Gupta says. “It gives you room to grow and improve.” More importantly, he believes it will help reframe the market. “More premium players will help move the market away from being purely cost-driven to being value-driven,” he adds.

Replacement market dynamics reinforce this view. Of the roughly 32–33 million passenger tyres replaced annually in India, tyres sized 17 inches and above account for about 12–13 percent. While the overall replacement market grows at 5–6 percent per year, this high-diameter segment is expanding at over 20 percent annually, closely tracking the shift in new vehicle sales.

This sharper focus on passenger tyres also explains Continental’s decision to exit the truck and bus radial segment in India. Gupta stresses that the decision was strategic rather than operational. Continental entered the TBR market in 2014, invested significantly and received strong feedback on product performance.

However, the economics proved limiting. Gupta says, “TBR in India is largely a B2B, fit-for-purpose market. Even if you have the best tyre, willingness to pay remains limited because fleet operators are under constant margin pressure.” Although commercial tyres offer higher absolute margins per unit, they consume substantially more raw material. “One commercial tyre uses six to eight times the raw material of a car tyre. Percentage margins are actually higher in passenger tyres,” Gupta explains.

After reviewing its portfolio, Continental chose focus over breadth. Exiting TBR allows the company to concentrate capital, technology and management attention on passenger and light truck tyres, where differentiation is more readily monetised. Gupta rejects the idea that a narrower portfolio weakens the company’s position. Commercial and passenger tyre customers, he argues, are fundamentally different – one driven by procurement economics, the other by consumer perception and emotion.

Indian consumers, Gupta believes, are becoming more tyre-aware. “Premiumisation is happening across the vehicle industry, not just in tyres. As consumers move to larger and more premium cars, their expectations also rise,” he says. Where tyres were once treated as an afterthought, buyers increasingly recognise their role in braking, grip, noise and overall driving confidence.

This change is evident at the retail level. Continental now operates more than 200 brand stores across India, and feedback from retail partners suggests customers are more informed and more demanding. Availability remains critical. “There is no point launching premium tyres if customers cannot find them,” Gupta says.

To support future demand, Continental is investing around INR 1 billion at its Modipuram plant, with the focus squarely on passenger and light truck tyres. The expansion will extend manufacturing capability from the current 20-inch limit to 22–23 inches, aligning local production with emerging vehicle trends.

Localisation, Gupta argues, is about adaptation rather than compromise. Indian road conditions, climate and driving habits require specific tuning without diluting global performance standards. Education and availability remain the principal challenges.

The recent launch of the CrossContact A/T² in India reflects this strategy. Introduced during Continental’s Track Day at Dot Goa 4x4, the product positions India among the early global markets for the tyre. “The first thing you notice is noise – or the lack of it,” Gupta says. “You hear the air-conditioning, not the tyre.” Ride comfort, grip and consistency across terrains define its appeal. As Gupta puts it, “Jahan tak soch jaati hai, wahan tak yeh tyre kaam karta hai.”

Looking ahead, Continental remains largely insulated from shifts in original equipment strategies, such as the gradual removal of spare tyres. Improved carcass design and stronger sidewalls are reducing puncture risk, but the company’s primary focus remains the replacement market.

For Gupta, the question is no longer whether India is ready for premium tyres, but how effectively manufacturers execute. “The market is finally ready for premium tyres,” he concludes. With passenger vehicle sales at record levels, SUVs firmly dominant and premium consumption expanding, Continental believes it is well positioned to grow alongside India’s evolving mobility landscape.

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Falken Tyre Europe GmbH has officially transitioned to operating under the name DUNLOP Tyre Europe GmbH, following its formal registration with the Offenbach Local Court. This change signifies a pivotal development for the Sumitomo Rubber Industries subsidiary. The rebranding represents a calculated and essential move to establish a more formidable European footprint for the DUNLOP brand. Company leadership acknowledges that this evolution is built upon the considerable equity established by Falken, including its strong market recognition, unwavering product quality and the commitment of its personnel.

This strategic shift positions the organisation under the umbrella of a globally respected marque, with its future strategy firmly centred on expansion, pioneering advancements and ecological responsibility. A prominent symbol of this new chapter will be unveiled shortly, with the renaming of the DUNLOP City Tower in Offenbach. A formal ceremony will mark the occasion, featuring the presentation of the DUNLOP logo at the tower. The event is set to be attended by Offenbach's Lord Mayor, Dr Felix Schwenke, alongside the company’s managing directors, Hiroshi Hamada and Markus Bögner, and the newly enlarged DUNLOP team.

Markus Bögner, Managing Director and President, DUNLOP Tyre Europe GmbH, said, “The name change is an important milestone of which we can be very proud. It strengthens our identity and underlines that we are ready for the next steps. Our strong heritage with Falken is and remains part of our success, laying the foundations for DUNLOP’s future in Europe. Our thanks go to all our employees and partners who have supported and accompanied us on this journey.”

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