Nokian Tyres Reports Fivefold Profit Jump as Pricing Pushes Offsets Market Weakness

Nokian Tyres Reports Fivefold Profit Jump as Pricing Pushes Offsets Market Weakness

Finnish tyremaker’s third-quarter operating profit surges 427 percent to 21.8 million euros. Romanian factory ramp-up progressing as planned, now operating 24/7. Heavy investment phase nearing its end as the company targets a cash flow turnaround.

Finnish tiremaker Nokian Tyres reported a more than fivefold increase in third-quarter operating profit, as aggressive pricing increases in passenger car tyres and improved manufacturing efficiency offset challenging market conditions and years of operational upheaval.

The company, known for its winter tyres, said operating profit jumped 427 per cent to 21.8 million euros ($23.7 million) in the July-September period from 4.1 million euros a year earlier, when results were dragged down by 13.3 million euros in inventory write-downs related to contract-manufactured products.

Net sales grew 10.8 percent to 344.1 million euros at constant exchange rates, with the company achieving growth across all regions despite what it characterised as stable replacement tyre markets in Europe and declining conditions in North America.

“I have to say that I’m very pleased to tell you that we are really moving in the right direction,” President and Chief Executive Paolo Pompei told analysts on a conference call. “Our operating profit increased significantly. Obviously, this is very encouraging for the future journey that we have ahead.”

Pricing Strategy Delivers Results

The improvement was driven primarily by price increases implemented from late in the first quarter onward to offset rising raw material costs and to reposition products in Central Europe and North America, Pompei said.

In the passenger car tyre segment, which accounts for the bulk of Nokian’s business, net sales rose 13.2 percent to 234 million euros, whilst segment operating profit climbed to 38.9 million euros from 34.4 million euros. The segment’s operating margin rose to 16.6 percent, up from 16.4 percent a year earlier.

Interim Chief Financial Officer Jari Huuhtanen said price and mix effects contributed a positive 35 million euros to operating profit in the passenger car tyre segment in the quarter. However, this was partially offset by 25 million euros in supply chain costs, related mainly to non-recurring items from the previous year.

“Our average sales price with comparable currencies improved, and the sales of higher than 18-inch tyres increased significantly,” Huuhtanen said. “Segment operating profit improved due to price increases and a favourable product mix.”

Pompei acknowledged that volume declined 3.3 percent in the quarter but said this was “well justified by the comparability with the previous year, due to the action we made in order to release the slow-moving stock that we have accumulated due to the crisis in the Red Sea channel.”

Asked about the sustainability of price increases, given that larger competitors have recently lowered their price-mix assumptions, Pompei said: “We cannot keep increasing pricing. It was extremely important for us, again, to compensate for the increase in rising raw material costs and, at the same time, to gradually reposition in Central Europe and in North America.”

He added that the company was “not expecting the price increase to affect volume at this stage” beyond the comparison effects from last year’s inventory clearance.

Romanian Factory Hits Milestone

The company’s new factory in Oradea, Romania - described as the world’s first full-scale zero-CO2-emissions tyre factory - is progressing according to plan and is now operating four shifts to enable round-the-clock production.

Nokian said it would deliver approximately one million tyres from the Romanian plant this year, up from zero in 2024. The factory began customer deliveries in the second quarter.

“One million is the production, but the capacity already by the end of the year will be up to three million pieces and up to the end of next year, up to six million pieces,” Pompei explained. “We need to distinguish between production and capacity.”

He said the remaining capacity expansion would focus on mixing and semi-finished product lines rather than curing and building machinery, meaning capital expenditure requirements would be “really limited” for the next three years.

The Romanian facility has launched two new product lines for Central and Southern European markets, most recently the Powerproof 2, a premium ultra-high-performance summer tyre unveiled at an event in Spain attended by 160 guests from across the region.

Pompei said that in future, “more than 80 percent of what we sell in the European market will be supported by our Romanian factories for Central Europe as well as South Europe.”

North America Shines, Heavy Tyres Struggle

North America emerged as a standout performer, with sales surging 27 percent despite a declining market, driven by favourable tariff developments.

“We are finally doing extremely well in North America, and we are very pleased with the journey that we have done so far,” Pompei said.

Canada removed 25 percent counter-tariffs on U.S.-produced tyres on 1 August, whilst the United States reduced tariffs on EU tyre imports from 25 percent to 15 percent on 1 September. Nokian produces approximately 85 per cent of its U.S. volume at its Dayton, Tennessee, facility.

“Obviously, today we are in the ideal situation to deliver tyres from the US to Canada without duties,” Pompei said.

The company also disclosed a new partnership with American Tire Distributors (ATD), the largest national distributor in the United States. However, Pompei noted exposure was “relatively low” as the relationship was beginning.

However, the heavy tyres division struggled, with net sales falling 4.4 per cent to 55.4 million euros at constant exchange rates, as weakness in truck and agricultural tyre markets persisted. Segment operating profit dropped to 5 million euros from 7.5 million euros, impacted by lower volumes and inventory revaluation effects.

Asked when the agricultural market might recover, Pompei said: “I believe the agri business in particular is subject to cycles, and cycles can be long or short, but in general, obviously, we are now landing at the end of the second, I would say almost the second year of a downturn.”

He added: “I’m expecting the agri business at the level in particular to recover pretty soon in the next six to 12 months.”

Winter Season Outlook, Efficiency Drive

Looking ahead to the crucial winter tyre selling season, Pompei said the weather in September had been “a little bit too warm” but conditions were improving.

“Now it is getting colder, both in the Nordics as well as in North America,” he said. “We are expecting the winter tyre season to basically start, as I speak in this moment in November.”

The company’s flagship winter products continued to receive strong reviews, with the Hakkapeliitta 10 studded tyre and Hakkapeliitta R5 non-studded tyre taking top positions in multiple European tyre tests.

Nokian also announced it had begun personnel negotiations in Finland regarding efficiency improvements, which have resulted in eight permanent white-collar job cuts.

“This is part of our journey when we want to improve efficiency and productivity,” Pompei said. “This is necessary to support the company in this journey.”

The company’s Vianor retail chain reported improved performance, with net sales rising 7 per cent at constant exchange rates to 74.9 million euros, whilst the segment’s operating loss narrowed to 6.4 million euros from 6.6 million euros.

Nokian maintained its 2025 guidance unchanged, expecting net sales to grow and segment operating profit as a percentage of net sales to improve compared with the previous year.

The company said tyre demand in its markets is expected to remain at 2024 levels. However, it cautioned that “development of the global economy as well as geopolitical, trade and tariff uncertainties may cause volatility to the company’s business environment.”

For the first nine months, net sales grew 9.4 percent to 957.3 million euros, whilst segment operating profit rose to 40.2 million euros from 35.4 million euros. Segment EBITDA margin improved to 14.1 percent from 13.5 percent.

Asked about margin volatility in the passenger car segment, which has swung sharply on a quarterly basis over the past two years, Pompei said stability should improve.

“Of course, you will see more stability in the development of the margins moving forward, because now, finally, we can leverage our increased capacity, we can leverage an efficient manufacturing footprint,” he said.

Nitto Tire’s Tomo Mizutani inducted into Tire Industry Hall of Fame

Nitto Tire’s Tomo Mizutani inducted into Tire Industry Hall of Fame

Tomoshige “Tomo” Mizutani, advisor and former Chairman and Chief Executive of Nitto Tire USA Inc., has been inducted into the Tire Industry Hall of Fame, one of the sector’s most prestigious honours.

The induction, hosted by the Tire Industry Association (TIA), will take place in Las Vegas alongside the 2025 SEMA Show, running from November 4 to 7.

With more than four decades in the tyre industry, Mizutani is widely credited with transforming Nitto Tire USA from a struggling operation in the early 1990s into a billion-dollar brand recognised for its innovation, performance, and strong connection with car enthusiasts.

“Our 2025 inductees embody the spirit of innovation and service that defines the tyre industry,” said Dick Gust, CEO of the Tire Industry Association. “Their contributions have improved safety, expanded opportunity, and shaped the way we do business worldwide.”

Mizutani’s approach combined deep market insight with bold risk-taking. By engaging with emerging communities of young car enthusiasts and later expanding into the off-road segment, he helped reposition Nitto as a brand built around passion and creativity.

Known for embracing innovation, Mizutani was among the first to champion enthusiast-driven product development and leverage digital and social media marketing to build brand loyalty. Under his leadership, Nitto cultivated a social media community exceeding 13 million followers, making it one of the most engaged automotive brands online.

“When new game-changing innovations would arise,” Mizutani said, “we viewed them as huge opportunities instead of risks.”

A frequent speaker at leading universities and industry events, Mizutani has shared his philosophy of creativity, resilience and perseverance with aspiring business leaders, often reminding audiences to “never ever give up.”

“This honour is beyond my dreams,” Mizutani said. “I’ve been privileged to meet and learn from industry legends who inspired me since my first day in America. I am deeply grateful for the incredible people who have guided, challenged, and supported me throughout my journey.”

Goodyear Unifies Global Aviation Operations, Appoints Burke To Lead Division

Goodyear Unifies Global Aviation Operations, Appoints Burke To Lead Division

Goodyear Tire & Rubber is consolidating its aviation tyre business under a single global structure and has named Joe Burke as Vice President of its Global Aviation business, effective Friday.

The reorganisation reflects the company's efforts to streamline operations and better serve customers across commercial, military and private aviation sectors, Goodyear said in a statement.

Burke, who has spent more than a decade at Goodyear, working across its commercial and aviation segments, will report to Grégory Boucharlat, Senior Vice President of Global Commercial Operations.

"Aviation is a strategic and high-value segment for Goodyear, and we're proud of the legacy we’ve built over the past century," said Boucharlat. "By aligning our global capabilities, we're better positioned to serve our customers with some of the industry's most trusted products and services. Joe's leadership and experience will be instrumental in driving the next chapter of Goodyear's growth in aviation."

The Akron-based tyremaker has supplied the aviation industry for more than a century, developing the world's first pneumatic aircraft tyre in 1909. Commercial airlines, military fleets and private aircraft operators use its products.

The aviation division represents a key component of Goodyear's portfolio, though the company did not disclose financial details about the segment’s contribution to overall revenue.

BKT Gets Highest Export Award From All India Rubber Industries Association

BKIT AIRIA

Balkrishna Industries (BKT) has secured the ‘Highest Export Award’ from the All India Rubber Industries Association (AIRIA) for its export performance in the tyre sector during FY2024-2025.

BKT has been receiving this award annually since 2009, underscoring the company’s sustained export leadership and commitment to global growth. This recognition from AIRIA, which promotes the Indian rubber industry, reinforces the company’s position as a key player in off-highway tyre manufacturing.

The award celebrates BKT’s export performance across tyres, flaps and carbon black, demonstrating its success in expanding its global footprint. With a presence in over 160 countries, the company continues to set benchmarks in the international tyre market through manufacturing and a customer-centric approach.

Arvind Poddar, Chairman & Managing Director, BKT, stated, "This recognition is a testament to BKT’s unwavering commitment to excellence in manufacturing, uncompromising quality standards and strategic global expansion. For another consecutive year, we are honoured to be acknowledged as a trusted partner in the international tire industry and remain dedicated to driving innovation and growing together while delivering value across global markets”.

Representational photo

The automotive aftermarket sector is evolving as companies look for new ways to deliver services. Tyresnmore is at the forefront, making it easier for people to buy tyres by offering a simple doorstep service instead of the old, complicated process.

When Tyresnmore joined the RPG Group in 2023, the company focused on closing the gap between buying tyres and having them fitted by professionals. Its direct-to-consumer model sends skilled technicians with the right tools to customers, taking care of tyres, batteries and alloy wheels.

In an interview with Tyre Trends magazine, CEO Rakesh Tatikonda explains how the company keeps NPS scores above 85 percent while serving more than 150,000 customers in six cities. Since online tyre sales in India account for only about 0.6-0.7 percent of the market, compared to 15-20 percent in Western countries, Tatikonda discusses how they manage inventory, maintain transparent pricing and plan to grow in this young yet promising industry.

The buyer-seller relationship has radically changed with the advent of the online world. E-commerce sites and online marketplaces have practically redefined the basics of convenient shopping and ease-of-purchase.

Today, one can easily purchase anything from as small as a pencil to as large as an air conditioner at the click of a button. Tyresnmore is taking this convenience a step further by not delivering but fitting tyres, batteries, alloy wheels and wheel covers professionally at a customer’s doorstep.

Acquired by RPG Group in 2023, Tyresnmore operates as an individual entity and offers a unique value proposition to its customers, not limited to doorstep tyre delivery. It provides fitment at their doorstep, helps discover the right product, provides transparent pricing and ensures clear communication throughout.

“The goal is to offer a hassle-free, end-to-end experience across all touchpoints. We treat this as an alternate channel. While some may label Tyresnmore as an online company, it functions much like a traditional dealer as we stock tyres and bring them directly to the customer. This is distinct from customers visiting a store for fitment,” said Chief Executive Officer Rakesh Tatikonda during an exclusive interaction with Tyre Trends magazine.

“We are authorised to sell multi-brand products, and today, we also sell batteries, alloy wheels and accessories. Our aim is to be a true multi-brand player in the auto accessory segment. In the offline channel, too, we recommend options based on customer needs. For example, an Audi or BMW customer who prioritises safety and prefers an international brand will be advised accordingly, whether that’s Pirelli or a tyre marked as Mercedes Original or Audi Original. This consultative approach ensures we remain customer-first without giving preference to any one brand,” he added.

The company has developed a direct-to-consumer (D2C) channel over several years, positioning itself as a multi-brand platform with an extensive catalogue and the convenience of scheduling tyre services at the customer’s preferred time and location in different cities.

According to Tatikonda, doorstep tyre services are increasingly common in Western markets and online penetration accounts for roughly 15–20 percent of sales. He argued that India has significant growth potential for such business as the market is nascent and industry estimates place India’s sales share through this channel at just 0.6–0.7 percent.

Explaining the market factors facilitating growth, Tatikonda explained that the tyre retail market in India is somewhat fragmented. Traditionally, the tyre purchase process ranging from product selection to fitment is disjointed, often requiring consumers to engage multiple parties such as dealers, third-party fitment providers or even puncture shops to complete a single transaction.

He highlighted that even multi-brand or OEM-branded shops tend to focus on particular segments such as passenger car or commercial tyres, leaving two-wheeler customers underserved. Many outlets either refer customers elsewhere for fitment or employ third-party technicians, making the experience cumbersome.

The company’s D2C channel addresses this gap by offering a complete, end-to-end solution. “The promise is the same for all customers. We do all the heavy lifting to make their lives comfortable,” Tatikonda said.

By employing its own trained technicians rather than outsourcing, the company ensures trust and reliability. He emphasised that the D2C model is not in competition with offline retail but rather complements it, catering to consumers seeking convenience, safety and transparency.

“This approach targets diverse customer segments, who may prefer the ease of doorstep services over visiting physical stores,” he stated.

ROLLOUT

A catalogue of over 2,000 stock keeping units (SKUs) across brands and sizes is maintained on the platform. SKUs not available in stock are procured directly from OEMs and customers are informed about expected delivery timelines.

While delivery is offered nationwide, fitment services are currently restricted to the six cities with operational dark stores. Convenience, reliability and transparency are provided to all customers including first-time online buyers and specific segments such as women and elderly consumers.

An in-depth explanation of the company’s D2C business model provided by Tatikonda highlights a full-stack approach ranging from brand awareness to fitment. Brand awareness is created using social media, SEO to generate leads.

Customers are offered the option to explore the website, www.tyresnmore.com, for product discovery or to contact customer care for consultative support. Detailed information on tyres including brand, SKU, price, warranty and unique selling points is presented to enable informed choices.

Selection of products is based on vehicle type, terrain, mileage and previous brand experience. Approximately 50–55 percent of orders are placed directly through the website, while the remaining orders are facilitated through customer care, where brands, price options and fitment slots are recommended.

Once an order is confirmed, it is routed to the city operations team and fulfilment is coordinated through a network, the dark stores. Stocking is carried out based on sales history, brand popularity and size demand.

The dark stores are maintained in six cities including Delhi NCR, Mumbai, Pune, Bangalore, Hyderabad and Chennai, where delivery and fitment are performed by trained in-house technicians rather than outsourced personnel.

Typical installation timelines once technician reaches the customer’s doorstep are 45 minutes for four-wheeler tyre installation, 30 minutes for two-wheelers and 15–20 minutes for batteries. Customers are notified at every stage, from order confirmation and invoicing to scheduling.

“In the six cities where we operate, customers don’t have to go anywhere. In other cities like Aurangabad or Jalandhar, we’ve seen organic traffic from customers we couldn’t fully serve, so we now provide tyre delivery even though fitment isn’t available there yet. Our multi-city presence allows us to source products quickly. Even if a tyre isn’t available in one hub, we check across others and fulfil the order. At present, however, outside our core network, we only deliver tyres and haven’t tied up with third parties for fitment,” noted the executive.

BALANCING ORDERS

Managing tyre inventories online remains a challenge given the sheer variety of products. Tatikonda said about 40 SKUs generate roughly 60 percent of sales, and those high-volume items are kept in stock to enable faster turnaround and same-day fitment.

Orders for these tyres are typically fulfilled within 24 hours of confirmation, underscoring the platform’s ability to match offline service standards. For the remaining 40 percent of SKUs, nearly 90 percent can still be sourced within the same city from OEMs, clearing and forwarding agents or distribution centres, allowing installation within a day.

Only rare or less common SKUs fall outside this framework with delivery timelines of two to five days. Customers are informed upfront about expected wait times, a transparency Tatikonda described as central to the model’s reliability.

Furthermore, tyre pricing in India is unlike batteries or alloys, which come with a manufacturer’s maximum retail price (MRP). “Tyres are considered unpackaged products and regulations don’t mandate an MRP,” Tatikonda explained. That leaves room for variation with dealers often bundling tyres with services and quoting composite rates.

The company, he said, tries to bring transparency by offering benchmarked prices that reflect market norms, typically within five percent either way of what dealer’s charge. Customers benefit from knowing upfront what is included and what isn’t.

“Convenience is a big factor. We operate at market prices, but we save people time, fuel and hassle. Consumers value that,” Tatikonda added.

He pointed to high customer ratings and the platform’s decade-long track record as further proof of trust. While prices are not fixed, Tatikonda stressed that the company follows OEM guidelines and market benchmarks to ensure fairness. “Even if it isn’t an MRP product, there’s always a market operating price. That’s what we go by,” he stated.

The platform hosts more than 10 tyre brands including CEAT, Goodyear, Apollo and JK Tyre, alongside several international labels. On the battery side, major players such as Exide and Amaron dominate the listings, providing consumers with a broad choice.

The company’s fitment vans have been equipped with the latest pneumatic tools including tyre changers, balancers, compressors and nitrogen-filling machines. Currently, 13 vans are deployed across six cities with some locations hosting three to four vans and others one or two.

The fleet has been continuously upgraded to accommodate evolving tyre sizes, now supporting installations of tyres up to 21 inches.

High-end vehicles have also been serviced with alloy wheels included in the fitment scope. After-service customer concerns are addressed through a dedicated call centre.

CUSTOMER FOCUS

The company’s current focus has been placed on the passenger vehicle segment, while commercial tyre offerings have not yet been explored, despite potential. Within the passenger category, emphasis has been given first to four-wheelers followed by two-wheelers, which range from standard scooters to high-end motorcycles such as Royal Enfield and Harley-Davidson models.

Two-wheeler customers have been reported to value convenience and are willing to pay for doorstep services, which include both tyre replacement and battery servicing.

“After-sales support has been structured as an integral part of the full-stack model. Warranty claims have been recorded at less than one percent monthly and they are managed through a dedicated customer service team. Feedback can be received through online platforms including Google and social media,” explained Tatikonda.

Pro-active follow-ups are conducted to address concerns even if customers do not initiate contact. Issues are triaged in three ways. Minor problems are resolved remotely, genuine warranty claims are directed to OEM network and where complete convenience is requested, technicians are dispatched to the customer’s doorstep for service. A service charge is applied in the latter scenario and detailed reporting is provided for transparency.

“Customer satisfaction metrics have been maintained at high levels with NPS scores consistently exceeding 85 percent. Educational initiatives have been launched to improve consumer knowledge, including a video series on YouTube and social media that covers tyre and battery maintenance, tyre health monitoring and safe driving habits,” added Tatikonda.

Additional content including blogs with guidance on product selection, maintenance and replacement timing is also being developed to reach broader customer segments and enhance informed decision-making.

EXPANSION AND DIVERSIFICATION

According to Tatikonda, the company is exploring adjacent product categories beyond its core offerings. Plans to expand the product portfolio are in the pipeline with a focus on both growth and increasing customer retention through repeat purchases.

“Our evolution has seen a phased launch starting with tyres followed by batteries, alloys, dash cams and tyre and battery protection plans including roadside assistance. A combination of in-house and third-party service providers has been engaged to accelerate category additions and strategic tie-ups,” said Tatikonda.

The executive noted that no category is considered difficult to sell if it performs well in the broader market. Each new category is preceded by detailed market research including trade insights, consumer requirements, buying behaviour and service considerations such as fitment.

Customer acquisition and retention strategies are reported to rely heavily on maximising lifetime value. With a current service record of over 150,000 customers and more than 300,000 tyre fitments, the focus has been placed on servicing existing customers through additional categories and services.

“Efficiency in operations, marketing and fulfilment is prioritised to increase margins. Operational measures include improving van and technician productivity, reducing fulfilment time and optimising route management through technology. Marketing efficiencies are sought through improved conversion rates per marketing rupee, while city-level fixed costs such as rentals and salaries are managed to scale profitably,” he said.

Expansion into marketplaces and other channels is being explored to reach different customer segments while maintaining the full-service model.

Regarding geographic expansion, Tatikonda estimated that the six operational cities currently account for approximately 25–30 percent of India’s four-wheeler tyre and battery market. Two-wheeler tyre demand, however, is described as less city-dependent and more widespread across Tier-I, Tier-II and rural areas. Immediate expansion plans are focused on consolidating scale in existing cities before considering further market entry beyond current territories.

“The goal of entering four to eight additional cities within the next three to five years is on the table. These target cities are expected to be non-metro areas situated close to existing metropolitan hubs. City selection is said to be driven by two primary factors including market potential and the presence of the appropriate consumer segments receptive to online purchases and doorstep convenience services. Resource allocation including bandwidth and operational capacity will be carefully managed to support this expansion,” divulged Tatikonda.

In terms of sales channels, the company has emphasised a strategy of channel diversification. Strategic alliances and synergies with other players are being explored to extend service offerings and reach additional customer segments.

Technology is positioned as a key enabler to deliver superior customer experiences across the entire lifecycle. Convenience, reliability and a broad spectrum of mobility solutions are highlighted as central to achieving this objective.