Bengaluru-headquartered engineering and R&D (ER&D) company L&T Technology Services (LTTS) has been working behind the scenes with a wide-variety of industries globally as well as in India; among them the transportation vertical is a key contributor, which also includes the automotive and tyre industry.

The tyre industry, which for long has been seen working silos, is now increasingly embracing digitalisation and external support for accelerated growth.

In an interaction with Tyre Trends, Shailendra Shrivastava, Chief Segment Officer, Mobility at L&T Technology Services, shared, “The integration of research, development, innovation and technology is set to revolutionise the tyre industry, ushering in an era of digital transformation that extends beyond traditional manufacturing.”

He believes that by leveraging digital tools, tyre makers can gather and analyse data from major fleet owners, which enables them to take more informed manufacturing decisions and strategic production planning.

PARTNERSHIPS PLAY A CRUCIAL ROLE

It is no secret that the automotive industry right now is undergoing an evolution, what’s with alternative fuels, digitalisation, artificial intelligence (AI), machine learning (ML), consumer demand or fast-evolving regulatory framework.

LTTS shared that ER&D companies are increasingly playing a pivotal role in the digital transformation of tyre OEMs, both in India and on a global scale. These partnerships are driven by the relentless advancement in technology and competitive market.

It is not just about development of tyres but also overhauling the manufacturing and other processes.

“Engineering firms provide tyre manufacturers with cutting-edge solutions such as smart manufacturing processes, IoT integrations and predictive analytics. These collaborations help tyre OEMs to enhance their operational efficiency, reduce costs and innovate their product offerings. This alliance is not just about keeping pace with industry trends; it’s about setting the trajectory for future innovation and ensuring that tyre companies are well equipped to meet evolving consumer demands and regulatory requirements,” explained Shrivastava.

KEY TRENDS RESHAPING THE TYRE INDUSTRY

In both automotive and non-automotive industries, such as agriculture, construction and material handling, tyres play a crucial role in ensuring efficiency, safety and performance. According to Shrivastava, one of the biggest shifts in the industry is the integration of technology.

He outlined the key trends witnessed:

Smart tyres: Technology integration in tyres is on the rise. Smart tyres equipped with sensors, monitor tyre pressure, temperature and tread wear provide real-time data to enhance safety and performance. Tyre companies are progressively leveraging this data to enhance customer engagement through their proprietary applications.

Electrification: With the growing focus on electric vehicles (EVs) and their increased weight due to batteries, there is a greater emphasis on designing tyres that reduce rolling resistance, minimise road noise and improve driving distance. EV tyres also need to be more durable to withstand wear and tear.

Safety: As safety becomes a priority, there is a demand for tyres with advanced features, including improved wet-condition grip, better braking performance and superior durability.

Sustainability: The demand for sustainable materials and tyres designed to reduce rolling resistance is growing. This trend improves fuel efficiency and reduces carbon emissions.

Customisation: Consumers are showing interest in customisable tyres with unique tread patterns and sidewall designs that allow for personalisation.

Retreading & recycling: The practice of retreading tyres is gaining popularity as a cost-effective and environmentally friendly alternative to complete tyre replacement; this is also particularly significant for commercial fleet operators.

When it comes to demand trends, while there are differences between India customers and other countries, there are trends converging in the tyre industry.

“In India, consumers have traditionally prioritised cost-effectiveness and durability due to challenging road conditions and economic factors. Conversely, in other global markets, emphasis has often been placed on performance, technology integration and environmental sustainability. However, with the rapid globalisation and exposure to international standards, Indian consumers are beginning to demand more sophisticated features. This shift is fostering a convergence of consumer expectations, as companies are now striving to balance affordability with cutting-edge technology and eco-friendly options, creating a more universal demand across various regions,” alluded Shrivastava.

Despite some commonalities, there are some key differences in the markets:

Price sensitivity: Indian consumers tend to be more price-sensitive, leading to a higher demand for budget-friendly tyres.

Durability: Due to challenging road conditions, Indian consumers prioritise durable tyres that can withstand Indian roads and rough terrains.

Replacement market dominance: In India, the replacement tyre market dominates, comprising about 56 percent of total volume, unlike developed markets with balanced demand between OEM and replacement tyres.

Fuel-efficient tyres: While globally there is interest in eco-friendly tyres, this trend is more pronounced in developed markets due to stricter environmental regulations.

Brand loyalty: Brand loyalty is stronger in developed markets. In India, consumers prioritise value for money and are open to trying new brands.

While the differences in the trends remain, as the Indian tyre industry becomes more tech-advanced, we will see more convergence between the developed and emerging markets.

TESTING, DESIGNING & VALIDATION

ER&D companies like LTTS mostly work behind the scenes and most of their work revolve around co-creating Intellectual Property Rights (IPR) with their clients.

The company also provides polymer engineering innovation, wherein it enables enhancement of performance, safety and sustainability with lightweight, durable and recyclable materials.

LTTS supports tyre manufacturers worldwide by leveraging advanced composites, 3D printing and high-performance thermoplastics, which helps clients address environmental concerns and cost challenges, driving smarter, more efficient and sustainable transportation solutions.

“We provide AI/ML-based applications, reverse engineering services, embedded sensor solutions and support for advanced manufacturing. Our expertise spans areas like digital twin technology, 3D scanning and IoT integration.

“LTTS focuses on several critical areas, including AI/ML for efficiency, which optimises tyre development and reducing material wastage. Reverse engineering allows for analysing tread patterns and compositions for improvements. Embedded systems & IoT for enabling smart tyres with real-time monitoring capabilities. Manufacturing support to bring efficiency in tyre production plants. Augmented reality and mobile applications to drive digital transformation in the tyre industry.

“By integrating AI, ML and IoT with traditional engineering, we help raise industry standards while prioritising sustainability and efficiency,” said the executive.

SENSOR-BASED TYRE TECH & EMISSIONS

Smart tyres are no longer a work of fiction but a promising technology that is set to see significant uptick in various segments in the coming years. It’s no secret that tyre makers and even start-ups alike are investing heavily to bring smart tyres that not only indicate the tyre pressure but also various parameters to improve vehicle performance, fuel efficiency and safety.

A report by SNS Insider estimates that the automotive smart tyre market size was valued at USD 90.90 billion in 2023 and expected to grow with a CAGR of 8.60 percent from 2024 to 2032. Through the year 2032, it is likely to reach around USD 206.39 billion, promoted by the expanding applications in terms of several automotive segments.

This will also be due to the emergence of more sensors and connected vehicle technology.

Shrivastava said, “Advanced sensors are revolutionising the tyre industry by offering a higher degree of customisation, fundamentally changing how performance and safety are approached. At the forefront of this transformation is enhanced safety: sensors now monitor tyre pressure, temperature and tread wear in real-time, preventing accidents by alerting drivers to potential issues before they escalate. Furthermore, improved performance is achieved as real-time feedback from these sensors optimises the Anti-lock Braking System (ABS) and traction control, resulting in a smoother driving experience. Predictive maintenance is another benefit, with sensors anticipating maintenance needs, thereby reducing both downtime and costs, which is especially advantageous for commercial fleets. Additionally, from a sustainability perspective, smart technologies support the design of more efficient and longer-lasting tyres, reducing waste and enhancing fuel efficiency.”

Furthermore, electrification and alternative fuels at the forefront for the automotive industry also means tyre makers are expected to further cut down on emissions, especially tyre emissions (particulate matter). This means the industry is looking not only for newer chemistries and eco-friendly materials but also the way tyres are designed, friction and recyclability.

As an ER&D partner for the automotive and tyre industry, LTTS stated that addressing particulate matter emissions and enhancing sustainability requires a comprehensive approach using several key strategies.

Firstly, the use of sustainable materials, such as renewable and bio-based materials like natural rubber and recycled components, becomes essential. Incorporating these materials not only reduces environmental impact but also supports the circular economy. Secondly, designing tyres with reduced rolling resistance improves fuel efficiency and minimises emissions, contributing significantly to sustainability efforts.

“Additionally, advanced manufacturing processes that incorporate energy-efficient production methods and reduce the use of toxic substances are critical in lowering the carbon footprint associated with tyre production. Lastly, the efficient development of tyres through Artificial Intelligence (AI) and Machine Learning (ML) optimises overall development efficiency and resource utilisation, thereby enhancing sustainability on multiple fronts. These strategies collectively form a robust framework for advancing tyre sustainability and mitigating environmental impacts. By focusing on these areas, the tyre industry can make significant strides towards sustainability and reducing its environmental footprint,” concluded an optimistic Shrivastava.

Titan International, a major global manufacturer of wheels and tyres for off-highway equipment, has secured expanded production rights for the Goodyear brand across multiple segments while renewing its existing farm tyre licensing agreement.

The deal extends Titan’s Goodyear brand manufacturing rights to include light construction, industrial, all-terrain vehicle (ATV), lawn and garden and golf tyre categories, significantly broadening the company's market reach.

The Illinois-based firm will continue to produce agricultural tyres under the Goodyear Farm Tyres brand, maintaining its presence in a sector where it manufactures products ranging from small implement tyres to the massive Goodyear Optitrac LSW1400/30R46, which features the company's proprietary Low Sidewall Technology.

"We are excited to expand our rights into new segments, as this positions us to serve our customers better and seize emerging market opportunities. Our research and product development teams are already working on new tyre designs incorporating innovative tyre technologies for the lawn and garden segment," said Paul Reitz, President & CEO of Titan International, Inc. "In addition to our newly acquired rights, we are reaffirming our commitment to the farm tyres segment, a vital part of our business."

Industry analysts note the expansion comes as demand for specialised off-highway tyres remains robust across construction, agriculture and recreational sectors despite broader economic headwinds.

Strategic growth initiative

The licensing expansion aligns with Titan's strategy to offer comprehensive wheel and tyre solutions across forestry, powersports, outdoor power equipment, agricultural, earthmoving, and light construction markets throughout the Americas, Europe, Africa and Oceania.

The company did not disclose the financial terms of the licensing agreement with Goodyear.

Titan International has manufactured Goodyear-branded farm tyres since 2005, when it acquired Goodyear's North American farm tyre business. It has gradually expanded these rights to other regions, including Latin America, Europe, the Middle East, Africa, Russia, and Australia.

Targets International Expansion With Robust Fy25 Performance

CEAT Ltd, the RPG Group’s flagship tyre company, reported a capital outlay of INR 9–10 billion  for FY2025–26, keeping with its capacity expansion strategy and global integration. This follows a strong FY25 performance of record revenues and double-digit growth across segments despite headwinds in overseas markets.

The business ended FY25 with consolidated revenue of INR 132.18 billion, up 10.6 percent year on year, and Q4 revenue at INR34.21 billion, up 14.3 percent compared to the corresponding quarter previous year. The standalone full-year EBITDA was INR 15 billion, and the Q4 operating margins improved by more than 100 basis points sequentially at 11.5 percent.

"We incurred capex of INR 9.46 billion in FY25 and expect a similar investment of INR 9–1.0 billion in FY26," said Kumar Subbiah, Chief Financial Officer of CEAT. “Our focus will remain on expanding capacities, particularly at the Ambarnath and Chennai facilities, and funding the integration of the recently acquired Camso compact construction business.”

In FY25, CEAT depreciated assets amounting to INR11.40 billion. Much of its FY26 capex will also fund equipment modernisation and normal maintenance at its Sri Lankan operations under Camso, putting a cost estimate of INR1-1.25 billion a year over the next two years.

The Camso acquisition, which is effective from Q2 FY26, is likely to significantly enhance CEAT's global presence. "Integration work has started in full acceleration," said Arnab Banerjee, Managing Director and CEO. “Initial focus will be on customer retention and business continuity, with consolidation expected to double Camso’s current capacity utilisation over the medium term.”

Despite international uncertainties, CEAT renewed its medium-term global growth forecast. Exports are expected to form 25–26 percent of the revenue post-Camso integration. Turbulence still exists in Latin America and North America due to tariff policies and exchange rate weakness. CEAT, however, has reported consistent performance in Europe, the Middle East, and Southeast Asia.

CEAT also indicated a likely raw material cost stabilisation in Q1 FY26, potentially softening by Q2, to support its margin growth initiatives. The gross margin was 37.5 percent in Q4 FY25, and the target was above 40 percent in the near term.

Banerjee signaled ongoing activity in electrification, premiumisation, and digitalisation. "With our technology outlays and new product introductions, we are hopeful of sustaining 20–25 percent market share in electric vehicle segments," he asserted.

The debt levels of the company are under control. The gross debt as of 31 March 2025 was INR 19.28 billion with a debt-to-EBITDA ratio of 1.3x and debt-to-equity ratio of 0.44x. Subbiah added that CEAT's strong cash generation will allow it to finance both organic and inorganic growth without materially diluting leverage metrics.

Black Swan Graphene Inc. (Black Swan) has appointed Jobin George as Technical Sales Manager for the Europe, Middle East and Africa (EMEA) region with immediate effect. This significant move, which supports Black Swan's worldwide commercial team as it promotes adoption of its graphene-enhanced products, follows Dan Roadcap’s appointment as Head of Technical Sales and Business Development.

George has an MBA from ICFAI University in India, a Post Graduate Diploma from the Central Institute of Petrochemical Engineering and Technology in India and a Bachelor of Science in Chemistry from Mahatma Gandhi University, India. He brings with him more than 20 years of global expertise in project management, business development and technical sales. George has had positions at Sands International Plastics and Sojitz Corporation in the United Arab Emirates, as well as Aquapak Polymers and H-Pack Global Ltd.

Simon Marcotte, President and Chief Executive Officer, Black Swan Graphene, said, “The addition of Jobin to our commercial team marks another important milestone in our global expansion strategy. His international experience, particularly in the EMEA region, and his proven ability to translate technical capability into commercial success make him an ideal fit as we continue scaling our graphene business.”

George said, “Black Swan is positioned at the forefront of advanced materials innovation. The opportunity to contribute to the adoption of such a transformative technology across the EMEA region is tremendously exciting. I look forward to engaging with our existing customers and partners, along with exploring opportunities for new clients as well, to showcase the performance and value of Black Swan’s graphene solutions.”

The Tire Recycling Foundation (TRF), a joint initiative led by the U.S. Tire Manufacturers Association (USTMA) and the Tire Industry Association (TIA), has appointed Stephanie Mull as its Executive Director.

Mull will spearhead the organisation's initiatives to promote innovation and invest in the circular tyre economy, expand the market for end-of-life tyres and support studies to fill in the gaps in the sustainability and tyre recycling supply chain in her new role at TRF. Mull brings a wealth of experience in the sustainability field and a broad understanding of fleet management and decarbonisation, including converting fleets to electric and alternative fuel vehicles. In her role as PepsiCo's Sustainability Senior Manager, she oversaw major electrification projects, obtained grant money and spearheaded efforts to lower Scope 1 and Scope 2 emissions throughout Pepsi and Frito-Lay's North American fleets. Mull oversaw the local government's efforts to upgrade municipal vehicles to greener technology and volunteered to help the Red Cross electrify its fleet.

Anne Forristall Luke, TRF Board President, said, “Stephanie Mull brings the passion, in-depth expertise and history of excellence that will drive TRF and its partners to achieve critical tyre recycling and reclamation milestones. We are thrilled to have her join the Foundation as we advance tyre sustainability while tackling the challenges and opportunities ahead.”

Mull said, “I’m honoured to join the Tire Recycling Foundation and support its sustainability mission to achieve 100 percent end-of-life tyre circularity. TRF is a vital nexus of expertise and leadership, and I look forward to working with all stakeholders in developing tyre recycling solutions that pave the way for a more sustainable future.” 

The Tire Recycling Foundation is dedicated to achieving 100 percent circularity for end-of-life tires by advancing innovation, building partnerships and supporting scalable recycling and reclamation solutions. Consisting of 15 global industry leaders with expertise in the manufacturing, recycling and transportation industries, TRF’s Board primarily focuses on the acceleration and adoption of emerging end-of-life tyre market technologies like rubber-modified asphalt (RMA).