India’s tyre industry is bracing for a tough fiscal year, weighed down by sluggish demand, volatile raw material prices and muted export growth. Revenue is forecast to expand just 7-8 percent – supported by modest price hikes and a marginal rise in volumes – marking a second straight year of single-digit growth. However, operating margins are set to contract sharply as natural rubber prices remain elevated despite recent moderation. In a wide-ranging discussion, Anuj Sethi, Senior Director at CRISIL Ratings, unpacks the factors shaping the sector, from price pressures and replacement demand to global headwinds and evolving trade dynamics.

How would you characterise the current fiscal year for the Indian tyre industry, considering its challenges and opportunities?

With volume expected to grow just by about 3-4 percent due to sluggish demand, overall revenue growth will remain in single digit for the second straight year, this fiscal. On the other hand, high raw material prices, especially of natural rubber, rose sharply over the past 12 months and have only recently begun to moderate. To a moderate extent, tyre manufacturers are increasing tyre prices in the replacement market to offset the impact of higher input prices, albeit operating profitability will still be impacted this fiscal.

The report mentions 7-8 percent revenue growth this fiscal year, supported by a 3-4 percent increase in realisations and volume. What specific factors could push growth beyond this forecast, and what risks might undercut it?

While realisation growth due to price hikes being undertaken by tyre manufacturers is a certain given sharp increase in natural rubber prices, higher than projected volume growth could take the growth higher than expected. With about 2/3rd of the domestic demand

coming from replacement segment, and it being the primary volume driver, any significant decline in that demand can impact the growth forecast other way.

Given that replacement demand is the primary volume driver, how do you assess the longevity of this demand surge in the context of evolving consumer preferences and vehicle usage patterns?

The replacement demand is expected to sustain over the medium term driven by the strong automotive sales achieved in previous fiscals.

With operating profitability projected to drop 300 basis points, what contingency measures are tyre makers considering beyond gradual price increases to mitigate this impact?

The price of natural rubber, which constitutes about half of the raw materials, continued to surge sharply in the first half of fiscal 2025. However, ability to pass on this increase is limited due to modest volume growth. Small price hikes and continued focus at improving operating efficiencies on an ongoing basis is another way to offset the impact to some extent.

Natural rubber prices have been highly volatile, reaching record highs and then falling to around INR 170 per kg. What is your outlook for natural rubber prices in the near to medium term, and what factors will likely influence their movement?

The sharp rise in natural rubber prices is due to a global shortage caused by inclement weather in major producing countries such as Thailand and Vietnam, which account for about half of the global production. Going forward, increase in supply with improving hectarage and slowdown in global economies is likely to drive correction in international rubber prices. In the last couple of months, some moderation in natural rubber prices has happened.

China has a surplus in crude oil-derived raw materials, including carbon black and other chemicals. Do you anticipate this surplus impacting global prices for these commodities, and how might Indian tyre makers benefit or face challenges as a result?

Share of natural rubber in tyre manufacturing is 47 percent, while carbon black accounts for ~20-22 percent. Should carbon black prices remain under control, it will benefit domestic tyre manufacturers.

Export growth is expected to remain muted at 2-3 percent. How does the current geopolitical climate, including sanctions or trade restrictions, further complicate Indian tyre makers’ access to markets in North America and Europe?

Export growth is expected to remain sluggish due to challenging business conditions in US and Europe. However, certain segments like off-the-road tyres are beginning to see better prospects as stocks with dealers are moderating. This could help players with presence in the off-the road- tyre segment.

Exports to key markets such as North America and Europe are under pressure due to economic challenges and unviable operating costs, leading to plant shutdowns in regions like US, Europe and Israel. Is the Indian tyre industry at risk of facing similar challenges, or does it have structural advantages that mitigate these risks?

Indian players are better placed compared to some of the western peers due to comparatively lower cost of operations, though operating profitability has come under pressure this fiscal because of higher imported rubber prices. Also, Indian players have flexibility to supply in small batch sizes unlike Chinese peers, and hence this also works to their advantage, more prominently in higher margin segments such as off-the road tyres.

Have tyre makers explored new international markets or alternative trade routes to counter supply chain disruptions and higher freight costs?

Not really; to circumvent the difficult environment around the Suez Canal, vessels are going around the Cape of Good Hope, adding 2-3 weeks and additional freight cost on exports. Some of the costs are being shared with the customers.

The report references Extended Producer Responsibility (EPR) regulations. How significant is the financial and operational burden of compliance for tyre makers, and what progress has been made in addressing this?

Adoption of EPR regulations is not expected to have a very sizeable impact on profitability, though it will lead to investments in strengthening processes and in technology.

For fleet operators, tyres are more than just rubber on the road – they represent nearly 30 percent of total operational costs. As margins tighten, operators are moving beyond simple replacements and instead reassessing the entire tyre lifecycle to maximise longevity without compromising on safety or uptime.

In India’s cost-sensitive trucking industry, tyres represent one of the most significant operating expenses for fleet operators. Managing tyre life effectively has therefore become a critical part of fleet profitability, pushing many transporters to revisit tyre retreading as a strategic cost-management tool. While retreading has long existed within the commercial vehicle ecosystem, the segment today is evolving rapidly with improved technology, organised service networks and greater industry awareness around sustainability.

In an exclusive interview with Tyre Trends, Harinder Pal Kaur, General Manager of Cargo Carrier at Northern Cargo Service, shared how the company is redefining the role of tyre retreading. At present, the fleet operator manages nearly 800 trucks, where retreading is no longer a mere ‘stop-gap’ repair, it has evolved into a sophisticated, central pillar of their operational strategy.

“When we talk about trucking economics, tyres are one of the major operating costs for fleet operators. Managing tyre life effectively is therefore very important for transporters, and this is where tyre retreading plays a significant role,” she explains.

Over the past few years, rising tyre prices, growing fleet sizes and the need to optimise operational costs have made retreading increasingly relevant. At the same time, improvements in tyre construction, retreading technology and organised service networks are steadily transforming the segment into a more structured component of tyre lifecycle management.

TECHNOLOGY AND ORGANISATION

India has historically had a strong culture of tyre retreading in the commercial vehicle sector, largely driven by the cost-conscious nature of transport operations. However, the quality and reliability of retreaded tyres have not always been consistent in the past, particularly when the industry was dominated by small, unorganised players.

Kaur believes the sector is now entering a new phase of technological maturity. “Over the last few years, the commercial vehicle tyre retreading market in India has evolved steadily. Rising tyre prices, growing fleet sizes and the need to optimise operating costs have encouraged many transporters to look at retreading as a practical solution to extend tyre life and improve cost efficiency,” she notes.

A key factor behind this shift has been the emergence of more advanced retreading technologies. Modern retreading processes now include sophisticated inspection and manufacturing techniques designed to improve reliability and durability.

“Earlier, retreading was often associated with inconsistent quality, but today more organised players and better processes are improving reliability and performance. Technologies such as advanced pre-cure retreading, mould-cure or hot retreading and non-destructive tyre casing inspection systems are helping assess the condition of casings before retreading,” Kaur explains.

Automation is also playing a role in improving consistency. “Automated buffing and building machines along with improved rubber compounds are helping enhance the durability and performance of retreaded tyres,” she adds.

As a result, fleet operators are increasingly viewing retreading not merely as a cost-saving exercise but as a structured process that can extend tyre life while maintaining operational safety.

FREIGHT CYCLES AND FLEET UTILISATION DRIVING DEMAND

The demand for retreaded tyres is closely linked to the operating dynamics of the logistics sector. India has one of the world’s largest commercial vehicle fleets and trucks often operate over long distances with high utilisation rates. This naturally leads to faster tyre wear.

“The expansion of the logistics sector and improving highway infrastructure are allowing trucks to operate at higher speeds and for longer durations, which increases tyre wear and creates further opportunities for retreading,” Kaur explains.

Freight cycles and payment patterns within the industry also influence tyre management decisions. The transport business typically operates with extended payment cycles, which puts pressure on fleet working capital.

“In the transport industry, freight payment cycles are often long. Payments can take time, and in some cases, companies still require the physical hard copy of the lorry receipt before processing payment. Because of this, transporters usually need to maintain around 45–60 days of operational working capital to keep their fleets running,” she says.

During periods of strong freight demand, trucks spend more time on the road and less time idle. While this improves revenue generation, it also accelerates tyre wear.

“Long highway runs generate higher heat build-up in tyres, which leads to faster tread wear and increased tyre consumption,” Kaur notes.

At the same time, operational disruptions can also affect tyre utilisation. “Delays during loading and unloading, accidents or regulatory checks can sometimes keep vehicles stationary for several days,” she says.

In such situations, retreading helps fleet operators balance costs while maintaining operational continuity. “Retreading becomes an important cost-management strategy because it helps extend the life of tyre casings and reduce the overall cost of tyre replacement,” she adds.

CHANGING PERCEPTIONS AMONG FLEET OPERATORS

One of the most notable developments in the past decade has been the gradual shift in how fleet operators perceive retreaded tyres. “Retreading is increasingly seen not as a ‘cheap repair’ but as a part of structured tyre lifecycle management,” Kaur observes.

This change has been driven partly by technological improvements and partly by greater professionalism among fleet operators themselves. As fleets become more organised and data-driven, tyre lifecycle planning is receiving greater attention.

Another important driver behind this shift has been the growing involvement of tyre manufacturers in the retreading ecosystem.

“Tyre manufacturers are now more directly involved in the retreading process through programmes that provide approved retread designs, certified processes and casing inspection standards. This has improved the reliability perception of retreaded tyres and encouraged larger fleets to adopt them with greater confidence,” Kaur explains.

Her own experience highlights how operational acceptance evolves over time. “I remember an interesting experience from the early days of my career in the transport sector. While reviewing ways to control operational expenses, I initially tried approaching tyre manufacturers directly to negotiate better discounts for bulk purchases, but that idea did not work out as planned,” she recalls.

During that process, she discovered retreading vendors who offered a viable alternative. “I came across two vendors in Kolkata who were providing tyre retreading services and spent time understanding the process and its cost advantages,” she says.

However, adoption within the fleet was not immediate. “When we first introduced retreaded tyres into our fleet, many drivers were hesitant due to concerns about performance. To address this, we started using retreaded tyres only on the dead axle where the operational risk is comparatively lower,” avers Kaur.

The strategy gradually built confidence within the organisation. “Over time, as the tyres performed well, driver confidence gradually improved,” she adds.

TYRE MANAGEMENT AND CASING QUALITY

While retreading offers clear cost advantages, its success depends heavily on how tyres are managed during their first lifecycle.

“Retreadability largely depends on how well a tyre is maintained during its first life. Poor maintenance practices can significantly reduce the chances of a tyre being successfully retreaded. Common mistakes include irregular rotation, incorrect air pressure, delayed servicing and neglecting tube or valve condition,” she says.

Driving behaviour also plays a critical role. “Overloading, harsh braking or aggressive driving can damage the casing and reduce retread potential. Maintaining proper rotation, correct air pressure, regular vehicle servicing and disciplined driving are key to keeping tyres healthy and suitable for retreading,” Kaur explains.

The quality of the original tyre is another crucial factor. Premium tyres often provide stronger casings that can withstand retreading more effectively.

She acknowledges: “premium tyre brands generally offer better retreadability because their casings are stronger and of higher quality. A durable casing maintains its structure after the first life, increasing the chances of a successful retread.”

In contrast, the growing influx of low-cost imported tyres poses challenges for the retreading ecosystem.

“Many imported tyres have shorter lifecycles and weaker casings, which makes them less suitable for reliable retreading. While they may reduce the initial purchase cost, they often offer lower long-term value in terms of durability and retreadability,” says the executive.

ECONOMICS AND SUSTAINABILITY ADVANTAGE

Ultimately, the biggest driver behind retreading adoption remains economics. In a competitive logistics market where margins are often thin, tyre lifecycle optimisation can significantly improve profitability.

“Retreading can add 50,000–55,000 km of additional life to a tyre after its first use. Since retreading costs roughly 40–50 percent of a new tyre, fleets can extend tyre value at a much lower expense,” she says.

When combined with proper tyre rotation and casing management, the savings can be substantial. “Retreading can help reduce overall tyre costs by 20–30 percent per axle while maintaining reliable on-road performance,” she says.

However, fleets often adopt a selective approach to ensure operational safety. “In our operations, we generally use retreaded tyres on vehicles running shorter routes or last-mile deliveries, while long-haul operations rely more on new tyres,” Kaur notes.

Beyond cost savings, sustainability considerations are also encouraging logistics companies to adopt retreading. “Retreading extends the life of a tyre casing and uses significantly less raw material and energy – up to 70–80 percent savings compared to producing a new tyre,” she explains.

In an era where organisations are increasingly focussing on reducing their carbon footprint, usage of retreaded tyres also has its own merit going beyond just cost saving.

“It reduces carbon emissions, lowers material consumption and significantly cuts tyre waste because fewer tyres end up in landfills,” she explains. By extending tyre lifecycles, retreading supports circular economy principles that are increasingly becoming part of corporate sustainability strategies.

THE ROAD AHEAD

Looking ahead, the retreading industry will need to adapt to emerging technological and regulatory trends. One of the biggest shifts on the horizon is the electrification of commercial vehicles.

“Electrification will bring new dynamics to the retreading business. Electric vehicles deliver higher torque, which can increase tyre wear,” she says.

At the same time, EV tyres are designed differently and may require specialised retreading materials and processes. “As tyre technology adapts for electric vehicles, retreading will also need EV-specific compounds and processes,” she explains.

Despite these changes, Kaur believes retreading will continue to remain relevant for fleet operators. “As the EV market grows, retreading could still remain a cost-effective solution, provided the technology evolves along with vehicle and tyre design,” she says.

For India’s logistics sector, where cost efficiency and operational optimisation remain paramount, tyre retreading is likely to remain a vital part of fleet strategy.

As Kaur summarises: “When supported by proper tyre maintenance, reliable partners and structured tyre management practices, retreading can deliver both economic and environmental benefits for fleet operators.”

HS HYOSUNG has broken from six decades of family-led governance by appointing its first-ever professional manager from outside the owner family as Group Chairman. The official inauguration of Chairman Kyuyoung Kim on 1 April aims to build a more professional and rational decision-making system while advancing transparent corporate governance. By strengthening the balance between ownership and management, the group seeks to enhance long-term corporate value, directly supporting Vice Chairman H S CHO’s vision of value-driven management to build a ‘Stronger HS HYOSUNG’.

This appointment reflects Vice Chairman CHO’s philosophy that capability and performance must determine leadership, even above owner family members. The decision serves as a strong motivational signal for employees and exemplifies HS HYOSUNG’s performance-driven culture. Rather than preserving traditional ownership-based succession, the group has chosen to reward expertise and achievement.

Amid global uncertainties, this leadership choice highlights expertise and performance. It resonates with the VC’s principles of leveraging science, technology and collective intelligence. The Korean business community regards this as a symbolic turning point, showing that major family-run conglomerates can embrace professional management at the highest level.

Kim is a quintessential ‘Hyosung Man’ with over 50 years at the company. An engineer from Hanyang University, he started on production sites and advanced core products like spandex and tyre cord. He earned the trust of the late Honorary Chairman Cho Suk Rae, serving as CEO of Hyosung Corporation for eight years from 2017. Meanwhile, Vice Chairman CHO will now focus on mid-to-long-term strategies for HS HYOSUNG ADVANCED MATERIALS. Following the holding company restructuring, the group will pursue new growth drivers. HS HYOSUNG has also appointed Vice Chairman Ki-soo Noh as CEO, launching second-term leadership under CEO Sunghoon Ahn.

Since its spin-off from Hyosung Group in July 2024, HS HYOSUNG has promoted a ‘Value Together’ culture with initiatives like town hall meetings and cultural events for employees and families. Vice Chairman CHO continues to lead the company’s volunteer group, focusing on social contributions for people with disabilities and cultural arts.

“The appointment of a non-owner chairman for the first time in Hyosung’s 60-year history is a rare case in Korea’s business community. It establishes a new governance model based on checks and balances, opening a new chapter in Korean corporate management,” said an industry official.

Continental has appointed Nevin Aslan-Özkan to lead its Indian tyre business as Managing Director, with her tenure beginning on 6 April 2026. She steps into the role following the departure of Samir Gupta, who left his position on 5 April 2026 due to personal reasons. This change marks a deliberate move to bring fresh strategic oversight to the company’s operations in one of its most important markets.

Aslan-Özkan is not new to the organisation, having joined Continental in 2017 and built her career across the EMEA and APAC regions in leadership roles focused on mergers, acquisitions and business strategy. Since May 2025, she had been serving as the Chief Financial Officer for Continental Tires India, where she managed financial performance and planning. Now taking the helm, she is expected to push forward an aggressive growth agenda, with a clear emphasis on expanding the company’s reach in the passenger vehicle segment.

The outgoing leader, Gupta, had been with Continental since 2012 and held the Managing Director position from January 2022. His leadership is credited with strengthening the brand’s presence across India, laying a solid foundation for the next phase of expansion. The timing of this leadership transition coincides with a period of heightened activity for Continental in the country.

Just last quarter, the company introduced the CrossContact A/T² during Track Day 2026, designed specifically for Indian SUV and 4X4 drivers, with India being the first global market to receive this product. To further reinforce its commitment, Continental has also announced an investment of EUR 10.5 million, aimed at strengthening its foothold in the passenger vehicle segment, particularly within the ultra-ultra-high performance category, in line with the changing vehicle landscape in India.

Aslan-Özkan said, “India continues to be a strong focus market for Continental Tires. Guided by our ‘In the Market, For the Market’ approach, we will continue to deliver products and technologies designed for Indian roads. I look forward to addressing the evolving expectations of Indian consumers and driving the company's next phase of growth.”

India’s rapidly expanding fleet ecosystem faces a persistent paradox with rising logistics demand alongside shrinking profit margins.

As operators grapple with fuel costs, compliance burdens and operational inefficiencies, tyres, often the second-largest fleet expense, are emerging as a critical lever for efficiency. Integrated tyre management solutions backed by data analytics and vendor-led lifecycle management are increasingly being viewed as a potential turning point to improve uptime, extend tyre life and stabilise operating costs across fleets.

India’s fleet ecosystem broadly includes long-haul commercial truck, last-mile delivery, urban distribution, passenger transport fleets and emerging electric vehicle fleets.

Growth in e-commerce, logistics modernisation and digital technologies such as telematics and AI-based route optimisation are reshaping fleet operations. Last-mile delivery fleets, often using small commercial vehicles, two-wheelers and EVs, are expanding rapidly to support online retail and quick-commerce models.

Amidst these growth drivers, integrated tyre management solutions and educating fleet owners might just be the hail Mary as the sector consistently grapples with the challenge of increasing profit margins and reducing operational costs.

The Asia-Pacific tyre fleet management solutions market was valued at USD 2.2 billion in 2024, riding at a compound annual growth rate of 9.2 percent as per data by Strategic Revenue Insights.

Speaking exclusively to Tyre Trends on avenues that can increase cost and operational efficiency for fleets, Reema Kothari Jogani, Director, Reema Transport, noted, “The sector requires education on different aspects of operations and fleet tyre management solutions powered by new-age technology. The more we grow on education, the more we can streamline operations and reap the most of current market trends and demand.”

According to Jogani, tyres are the second most costly investment for fleets and companies require tyre management solutions that can increase its entire service life. “We currently operate on a cost-per-kilometre (CPK) model with a vendor. Under this arrangement, we provide them with the kilometre requirement per month and they manage the entire tyre lifecycle,” she said.

This approach has simplified operations for the company as the executive claimed that tyres can run for more distances but fleets often don’t achieve it because performance depends heavily on factors such as driving behaviour and road conditions.

She noted that engagement with tyre industry vendors has recently increased, improving access to data and making tyre management easier. Earlier, there was little structured support despite tyres being the second-largest fleet cost after fuel, so tyres were managed in-house. Later, the company partnered with specialised vendors for professional management.

“Today, detailed data helps analyse tyre wear, identify whether damage is caused by driver behaviour, road conditions or manufacturing issues and determine optimal replacement timing. Such insights also create learning opportunities for fleet operators,” said Jogani.

She believes that technology combined with skilled manpower to interpret data is the future, though priorities differ by company. “Some focus on AI for vehicle utilisation, while others prioritise tyre management. Overall, the evolution from basic GPS tracking to advanced tyre and fleet analytics has improved driver education, fuel efficiency, mileage and safety,” she said.

HURDLES REDUCING

Tyre management solutions have historically remained a largely manual and reactive process. Kothari suggested that the industry is now gradually moving towards digital tyre health management systems, but the transition is still uneven.   

“While technologies such as telematics, RFID tagging and Bluetooth-enabled sensors are becoming more common, their effectiveness ultimately depends on three factors viz-a-viz driver awareness, reliable data and integrated management platforms,” she noted.

One of the most widely acknowledged benefits of tyre management systems is improved fuel efficiency through lower rolling resistance. Poorly inflated or poorly maintained tyres increase resistance against the road surface, forcing vehicles to consume more fuel.

“Fleet operators recognise this link, but many say it remains difficult to translate tyre performance improvements into clear financial gains within their profit-and-loss statements,” noted Jogani.

In theory, telematics platforms can track parameters such as tyre pressure, temperature and kilometres travelled. However, tyre monitoring systems often operate separately from fuel management software.

This makes it challenging for fleet operators to directly correlate tyre condition with fuel consumption. As a result, the financial benefits of tyre management tend to appear indirectly through longer tyre life, reduced breakdowns and fewer vehicle stoppages rather than through clearly quantified fuel savings.

“Another key pillar of tyre management is driver participation. Despite the growing use of sensors and digital monitoring systems, fleet owners emphasise that drivers remain the first line of defence when it comes to tyre safety and performance,” informed Jogani.

She added that many companies have begun investing in structured driver education programmes, encouraging drivers to conduct daily visual inspections and basic checks before starting a trip.

Training typically focuses on recognising abnormal tyre wear, maintaining correct pressure and avoiding harsh driving behaviour that accelerates tyre degradation.

“However, implementing such training across large fleets can be difficult. Indian transport networks often involve drivers operating across multiple states, languages and levels of formal education. This makes consistent driver training programmes a challenge,” she noted.

Some fleets are experimenting with simplified training modules and incentive schemes that reward drivers for maintaining tyre health and reducing wear.

HELPING HAND

Tyre manufacturers are also playing a more active role in supporting fleet operators. Several companies now provide tyre health audits, driver training workshops and digital tyre management tools as part of their service offerings.

In some cases, dedicated engineers visit fleet depots to analyse tyre wear patterns and recommend corrective measures. Yet Jogani noted that these services often remain focused on tyre performance rather than offering a fully integrated operational view that connects tyres with fuel usage, driver behaviour and route conditions.

“One of the most persistent challenges in tyre fleet management today is the disparity between driver-reported information and digital platform data. Fleet owners frequently encounter differences between kilometres logged by drivers and those recorded by telematics or tyre management systems. These discrepancies complicate tyre lifecycle analysis and make it difficult to accurately calculate cost-per-kilometre metrics,” she explained.

The problem is often compounded by the use of multiple independent software systems that do not communicate with each other seamlessly.

This shift is gradually transforming workshop practices from scheduled inspections to predictive maintenance. Instead of identifying tyre issues only during routine checks, fleets can intervene earlier when digital alerts signal potential problems.

COST CENTRE TO STRATEGIC ASSET

When Jogani began her company’s operational portfolios, one gap stood out. Tyres were being managed without a dedicated system.

“Vendors frequently claimed their tyres could run beyond 100,000 kilometres. In practice, however, the fleet was seeing lifespans closer to 70,000–80,000 kilometres. The discrepancy prompted a deeper operational review,” she said.

Even before adopting a formal tyre management programme, the company had implemented a checklist-based inspection system. The shift came when tyre suppliers began introducing CPK model, under which vendors assume responsibility for tyre performance and lifecycle management.

Under the arrangement, the vendor becomes responsible for ensuring tyre performance. The model also exposed Jogani to practices that were previously unfamiliar, such as checking tyre pressure, tyre condition, oil levels and coolant status.

“Professional management of these processes, from rotation schedules to monitoring, significantly reduced operational complexity for us,” she added.

“When someone manages all these aspects professionally, life becomes much easier for a transporter,” Jogani said. “Of course, such services come at a cost because vendors invest manpower and technology into the process.”

Still, she believes adoption will expand as transporters better understand the financial and operational benefits.

In terms of fleet downtime, however, tyres are rarely the primary cause of breakdowns when properly maintained.

“In my experience, breakdowns rarely happen purely because of tyres, provided they are well maintained and drivers are trained properly,” she said. “Most tyre-related problems occur due to poor road conditions, which may cause punctures.” 

For Jogani, tyres have evolved from a consumable to a strategic asset.

VENDOR-LED ECOSYSTEMS

Today, most tyres in the company’s fleet are managed by vendors.

However, new vehicles initially run on the tyres supplied by the manufacturer before being gradually integrated into the vendor programme.

“For new vehicles that we add to the fleet, they initially operate with the tyres supplied by the manufacturer and are not immediately part of the vendor programme,” Jogani said.

The system has been in place for roughly two to two-and-a-half years and has already improved tyre productivity.

While the company now pays a slightly higher premium, the operational benefits outweigh the cost.

“The entire tyre management responsibility now lies with the vendor,” she said. “They ensure that tyres are maintained properly and perform according to the agreed parameters.”

Previously, the fleet often lost value because tyres did not reach their expected lifespan.

Isolating the precise financial impact remains difficult, however, because other costs have also risen.

“Vehicle prices have gone up, compliance requirements like AIS-140 have added costs and operational expenses have increased overall,” she said. “Because of these multiple factors, it becomes difficult to isolate the exact savings purely from tyre management.”

DIGITAL ADOPTION

Adoption of digital tyre management tools such as tyre pressure monitoring systems (TPMS) remains uneven across the logistics sector.

“If you ask me honestly, some companies are adopting these systems, especially larger fleets,” Jogani said. “A few mid-sized companies also have in-house maintenance teams that manage tyre monitoring.”

Cost considerations remain a major barrier. “Fuel is a major cost component and tyres are the second major cost. At the same time, safety requirements are increasing,” she said.

From a transporter’s perspective, the return on investment can appear uncertain.

“Another challenge is behavioural,” Jogani said. “Even if technology like TPMS helps drivers save fuel or improve efficiency, not all drivers may be willing to openly share that benefit with fleet owners.”

Integration is another concern. If every tyre supplier operates its own digital platform, complexity rises rapidly.

“If I have a fleet of 100 vehicles and they are managed by one vendor who provides a single dashboard with analytics for all tyre data, it makes sense,” she said. “But if I have to deal with multiple vendors and multiple platforms, the cost and complexity increase significantly.”

An integrated tyre management platform, she added, would provide the most effective solution.

Transporters also need clearer demonstrations of value. Moreover, affordable pricing models could accelerate adoption, particularly among mid-sized operators.

DELEGATING PROCUREMENT

Operating across western, central and southern India exposes fleets to widely varying road conditions and temperatures. Earlier, the company tailored tyre procurement to specific routes.

“Because our operations involve life-saving logistics, safety has always been the top priority,” Jogani said. “For that reason, we rarely opted for retreading or remoulding.”

“Since the vendor is responsible for tyre performance and lifecycle management, we have largely left these decisions to them,” she added.

Under the current arrangement, retreaded tyres are generally not used in the fleet.

“For our operations, factors such as durability, heat resistance, load-carrying capacity and tread design are extremely important,” Jogani said.

Vendor representatives are stationed at company branches to monitor vehicles continuously. Monthly billing is based on usage data, while inspections track tyre condition, alignment and kilometres covered.

“Because of this constant monitoring, tyre management has become much easier for us,” she said.

The vendor also plays an advisory role, analysing operational data and providing feedback on driving patterns.

Furthermore, comparing performance data between drivers operating similar vehicles helps improve training and accountability.

On the other hand, small fleet operators often struggle to adopt tyre management technologies due to cost constraints, making collaboration with larger logistics ecosystems crucial.

According to Jogani, smaller fleet owners attached to networks like Reema Transport can access systems they might not afford independently. For these operators, keeping vehicles running is critical because downtime directly halts income and affects their ability to service loans.

As a result, adoption of tyre management solutions is likely to be gradual, supported by education on long-term cost benefits and collaborative industry models.