- Anuj Sethi
- CRISIL Ratings
- tyre
- demand
Navigate Cost Squeeze And Tepid Demand: CRISIL’s Sethi On What Lies Ahead
- by Sharad Matade
- December 23, 2024

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.
- Apollo Tyres
- Parmeshwaran Iyer
Apollo Tyres Names Parmeshwaran Iyer as Chief Supply Chain Officer
- by Sharad Matade
- February 06, 2025

Apollo Tyres has appointed Parmeshwaran Iyer as Chief Supply Chain Officer with immediate effect.
Iyer, a seasoned supply chain professional, brings 30 years of experience in the fast-moving consumer goods, healthcare, oil and white goods industries. He has extensive expertise in end-to-end planning, procurement, logistics and customer management.
Before joining the Indian tyre maker, Iyer spent over 18 years at Beiersdorf AG, where he held multiple leadership roles across Germany, the United Arab Emirates, Russia, and India. Most recently, he served as Global Vice President of Digital Supply Chain, spearheading digitalisation initiatives.
Prior to that, he was Global Vice President of Supply Chain Management, leading a team responsible for planning, logistics, and customer service strategies, including Sales and Operations Planning (S&OP), cost-to-serve analysis, and logistics excellence.
Iyer also led regional supply chain operations for Beiersdorf, overseeing end-to-end supply chain management across 88 countries in Sub-Saharan Africa, Russia/CIS, and Southwest Asia, including India.
His career also includes stints at Johnson & Johnson, TOTAL Energies India and Daikin Airconditioning.
He holds a Post Graduate Diploma in Business Management with a specialisation in Material Management and a bachelor’s degree in physics from the University of Mumbai.
- Michelin
- HAAS Alert
- Ed Quigley
Michelin, HAAS Alert Partner to Enhance Roadside Safety
- by TT News
- February 05, 2025

Michelin North America and HAAS Alert are rolling out a new safety initiative that uses digital alerts to protect stranded truckers and roadside technicians across the United States and Canada.
The system integrates HAAS Alert's Safety Cloud technology with Michelin's ONCall emergency roadside service. When truck drivers request roadside assistance through ONCall, the system automatically sends alerts to nearby motorists through navigation apps like Apple Maps and Waze, as well as built-in vehicle systems in several auto brands.
These alerts warn approaching drivers to slow down and move over, providing up to 30 seconds of advance notice before reaching the breakdown site.
"Since 2009, Michelin ONCall has responded to almost 3 million roadside emergency service calls in the U.S. and Canada," said Ed Quigley, Director of Sales & Operations, Connected Solutions at Michelin North America, Inc. "That's why this partnership with HAAS Alert is so important. We want to help improve the safety of everyone on the highway, including commercial truck drivers and service providers, as well as consumer vehicle drivers like you and me."
The partnership comes as research demonstrates the effectiveness of digital alert systems. A 2021 Purdue University study found that such alerts can reduce hard braking incidents by up to 80 percent.
"This new product is designed to help protect commercial vehicle operators by alerting approaching drivers who are using pertinent navigation apps, through Safety Cloud until help arrives," said Tom Parbs, VP of Sales at HAAS Alert.
Michelin ONCall, launched in 2009, aims to respond to service requests within two hours and has handled nearly 3 million tyre and mechanical emergency roadside service events.

Satish Sharma recently joined BKT as Senior President for Strategy and Business Development.
Sharma brings a rich experience of over three decades in the tyre industry.
Prior to this appointment, Sharma was the President spearheading Apollo Tyres’ operations across the Asia Pacific, Middle East, and Africa regions. Sharma oversaw key functions, including manufacturing, sales and marketing, customer relations, and regional profitability.
Sharma holds a bachelor’s degree in Chemical Engineering from the National Institute of Technology, Raipur, and a post-graduate diploma in Business Management from the Institute of Management Technology, Ghaziabad.
A veteran of India’s automotive sector, Sharma previously served as Chairman of the Automotive Tyre Manufacturers Association (ATMA).
- Beckhoff Automation
- Hall of Fame for Family Businesses
- Hans Beckhoff
Hans Beckhoff Inducted Into Hall Of Fame For Family Businesses
- by TT News
- February 04, 2025

Hans Beckhoff, Founder and Managing Director of Beckhoff Automation, was honoured for his entrepreneurial achievements on 29 January 2025 by German business newspaper Handelsblatt, KPMG and the Stiftung Familienunternehmen (the Foundation for Family Business) and inducted into the Hall of Fame for Family Businesses.
Beckhoff, 70, was honoured in front of more than 170 family business owners during a ceremony in Munich, Germany. For 45 years, he has maintained a high rate of innovation at his technological business, which is no small feat. Instead of being driven by the digital transition, he is driving it. He has also not lost sight of today's global issues, including climate change. According to Beckhoff's slogan, ‘Engineers must save the world’, sophisticated automation technology is crucial in this context since it establishes the groundwork for enhancing sustainability as well as energy and resource efficiency.
The company's technological inventions, many of which have established worldwide market standards in automation, have proven groundbreaking, substantiating its claim to be a pioneer in the field. The core Beckhoff philosophy of PC-based control technology, which leverages the vast development potential of the IT industry for industrial applications, is a perfect illustration of this. PC-based control, which Beckhoff introduced to the market in 1986 and is today essential in a variety of sectors, including the semiconductor, automotive and packaging industries, is where automation and IT meet. It is especially used for high-performance applications.
Another milestone is the bus terminal, fieldbus technology in terminal block format, which was introduced in 1995. This fundamental automation building block allowed for the implementation of strong, small, modular and finely granular control systems that were customised to meet specific needs. The ultra-fast EtherCAT communication technology, introduced by Beckhoff in 2003, has grown to become a crucial global standard for high-performance automation. Today, more than 8,000 businesses from all around the world support this intriguing technology as members of the EtherCAT Technology Group. Despite its reputation for inventions and revolutions, Beckhoff's system idea is still widely used. Today, Beckhoff technology handles all aspects of control tasks: from machine vision and control cabinet-free automation with a comprehensive hardware and software suite to modular I/O components, flexible drive technology, intelligent product transport and TwinCAT control software with artificial intelligence (AI) features, powerful industrial PCs, and EtherCAT.
The next generation has also benefited from Beckhoff's passion for automation and innovation, as seen by the fact that his children, Frederike and Johannes Beckhoff, have long held prominent roles within the business. As a result, Beckhoff Automation is still a family business 45 years after it was founded.
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