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.

Yokohama Rubber Company’s decision to establish Mexico as the manufacturing hub for its Americas OTR operations signals more than a capacity expansion. It reflects a strategic overhaul of its global industrial footprint. As geopolitical uncertainties, tariff risks and supply-chain disruptions reshape manufacturing priorities, the company’s ‘local for local’ model seeks to position production closer to customers while strengthening resilience. The move also underlines its broader ambition to emerge as the world’s second-largest supplier of specialised mining and construction tyres.

Yokomaha Rubber Company is seeing Mexico as its gateway for Americas, especially its OTR tyre business. Mexico will serve as the production hub for Yokohama and Goodyear Off-the-Road branded products under its ‘local for local’ manufacturing strategy.

Yokohama Rubber will invest USD 115 million to build a mining and construction machinery tyre plant in Mexico as part of the second phase of expansion at its site, where a passenger car tyre plant is already under construction. The brownfield facility will have an annual production capacity of 10,650 tonnes (rubber weight), with construction due to begin in the third quarter of 2026 and production expected to start in the second quarter of 2028.

The company is also establishing a greenfield OTR tyre plant in Odisha, India, with an annual production capacity of 9,150 tonnes and a planned investment of USD 130 million. Production at the Indian facility is scheduled to begin in the third quarter of 2028.

The facility will supply OTR tyres across North and South America, complementing plants in Romania, India, Japan and the Czech Republic, while maintaining global quality standards supported by research and development centres in Japan and US.

Speaking to Tyre Trends¸ Yokohama OTR President Loic Ravasio said, “Mexico becomes the anchor of our Americas production, part of a broader move towards a ‘local for local’ model in which we manufacture OTR tyres in every major region, closer to the customers who use them. It joins a growing worldwide footprint that already includes Romania, India, Japan and the Czech Republic – every site held to the same quality benchmark backed by our research and development centres in Japan and US. For manufacturing specifically, Mexico’s role is to serve North and South America from one central site, putting product closer to mining, construction and infrastructure customers throughout the Americas.”

The plants in India and Mexico are sized and positioned for the regions they serve. These new facilities are part of the company’s transition from Goodyear-operated production to Yokohama-owned sites while also growing its total worldwide OTR capacity. Japan remains one of the company’s core production sites throughout, added Ravasio.

“Mexico’s plant and India’s greenfield plant will more than replace Goodyear plants capacity, allowing us to continue supplying our existing customers, supporting their growth, and also winning new customers with the additional capacity,” he added.

As for production responsibilities, the company’s goal is to produce tyres closest to the customers that need them. OTR plants are flexible and able to adapt to regional needs. “We’re not locking in specifics yet. We want to listen to customers and show them what the combined portfolio can do first and let that shape where things get built,” Ravasio said.

The Mexico manufacturing facility is being developed in Saltillo, Coahuila. Its centralised location for production and distribution across the entire Americas region will allow Yokohama to produce OTR tyres closer to its customers, shortening the lead time and improving responsiveness to customer requests.

“We’re building the Saltillo site to be state-of-the-art from day one including the technology and quality standards because we’re not planning only for today’s market, we’re planning for where our customers and this industry are heading,” said Ravasio.

MARKET ADVANTAGES

The acquisition of Goodyear’s OTR business has created optimum synergies for Yokohama Rubber Company as it is now leveraging the strengths of two complementary product portfolios, which lets it offer one of the most complete product ranges available and better meet the needs of its customers.

“Manufacturing, logistics, research and development synergies have all played their part, bringing procurement, production planning and engineering together from both organisations rather than running them in parallel. Together, that’s meant retaining the great majority of longstanding accounts from both sides and winning new customers we hadn’t worked with before,” said Ravasio.

He added, “What’s really exceeded our initial expectations is the pace. We said we wanted to move quickly on capacity and within about a year of closing we’d already committed to three new or expanded plants across three continents. The two research and development centres working together have increased our capabilities to launch quicker new products and new technologies into the market. That pace shows real commitment to the OTR industry.”

Commenting on the advantages that Mexico offers the business, he noted that Mexico has a skilled, experienced manufacturing workforce and an established industrial supplier base. Its real advantage is geography as a single site here can efficiently reach customers across North America, Central America and South America, which is central to the company’s local-for-local approach.

Yokohama Rubber Company is also able to build on existing local relationships in the country, giving it a head start on talent and operational know-how as it brings the OTR plant online.

GROWTH DRIVERS

According to Ravasio, global infrastructure development in roads, rail and housing along with continued mining and construction activity continues to drive demand for OTR tyres across the Americas.

Mexico’s centralised location allows for shorter supply lines and tyres built closer to the mines and job sites that use them rather than shipped across oceans, which means less equipment downtime waiting on tyres.

“In a market where total cost of ownership (TCO) and not just tyre price drives the buying decision, minimising that downtime is one of the ways we compete,” he noted.

The Mexico plant is designed first and foremost to serve regional demand across the Americas. Nonetheless, the company’s global network is built for flexibility and the plant’s output can support other markets as needed to balance capacity across our worldwide footprint, said Ravasio.

The primary beneficiaries will be mining and construction operators across the Americas along with the infrastructure projects that depend on them. Yokohama Rubber Company’s priority is to better serve its customers, global or local, and to ensure business continuity.

Moreover, as competition toughens in the global OTR market, Yokohama Rubber Company seeks to secure the second spot in the list of world’s largest suppliers. Alluding to this, Ravasio said, “Our ambition is clear. We want to become the world’s second-largest supplier of specialised mining and construction tyres and the right manufacturing footprint is one part of how we get there alongside the same high-quality standards we’re building into every new site including Mexico.”

“Product quality and performance matter just as much and our research and development centres in Japan and US design tyres built specifically for this segment backed by services like tyre pressure management systems TPMS and EMTrack that give customers real-time visibility into tyre health and performance,” he added.

The target behind all of it is straightforward, which is to lower Yokohama customers’ TCO and help them run more competitive operations. Total cost of ownership matters more to OTR customers than any other measure and Yokohama Rubber Company is building everything including research and development, service tools and manufacturing around living up to its TCO leadership position in the market.

FIGHTING CHALLENGES

The plant is being built around modern, energy- and water-efficient lines with the digital process controls needed to hold consistent quality at scale. Producing closer to its customers also means less long-distance transportation of finished tyres and fewer transport-related emissions as a result.

Workforce training will be built around Yokohama Rubber Company’s current manufacturing standards and the plant’s operations will be measured against the environmental targets in its medium-term management plan.

Furthermore, this project is as much about people as it is about capacity. The company is leaning on local expertise and know-how in the region to build the Mexico manufacturing team paired with quality training grounded in its manufacturing experience from other parts of the world.

Hence, the site benefits from both perspectives from day one and creates meaningful skilled employment, directly at the plant and through the broader supplier network around it.

“It’s the same approach we’ve used successfully as we’ve expanded elsewhere. We invest in local talent, train heavily and hold everyone to the same standards we apply globally. Wherever we build, the people on the floor get the same training and hold the same standards as any other Yokohama site. That’s non-negotiable,” Ravasio said.

Alluding to tackling supply chain setbacks, the executive noted that producing closer to the customer is the clearest way to build resilience too as it reduces the company’s exposure to long cross-continental shipping routes and the risks that come with them, plus it helps mitigate the impacts of tariffs.

“Our plant in Mexico makes our overall industrial footprint stronger, which is what helps us weather supply-side setbacks rather than depending on any single site or transit lane. It also lets us react faster to swings in product trends and other unforeseen events because the people and the production capacity making that call are closer to where the need actually is. That kind of diversified, local-for-local footprint is deliberately designed to avoid the kind of supply shocks the industry has seen in recent years,” he added. And over the next five years, Mexico becomes one of the clearest proof points for the company’s local-for-local approach. “We expect continued growth from infrastructure and mining activity and customers pushing equipment harder, which raises the bar for durability and service as much as tyre technology. Regional manufacturing, closer partnerships with customers and the network we’ve built over the past year are how we intend to become the world’s second-largest supplier in the OTR industry,” Ravasio said.

Mexico’s emergence as the company’s Americas manufacturing hub represents a calculated investment in regionalisation rather than simple capacity addition. Whether this strategy translates into sustained market share gains will depend on execution, customer adoption and competitive pressures, but it firmly positions the company to respond faster to an increasingly demanding global OTR market.

The Country Manager of Bridgestone Mexico on regional strategy, the Cuernavaca plant, the rise of retreading and why the future belongs to companies that evolve with their customers.

Mexico has spent the past decade transforming itself from a low-cost manufacturing base into something far more strategic within North America’s automotive supply chain. Few executives are better placed to explain that shift than Alexandre Lopes Araujo, Country Manager of Bridgestone Mexico, who believes the country is living through one of the most significant moments in its automotive history, recognised today not only for its manufacturing strength but for the strategic role it plays in the wider development of the North American industry.

For Bridgestone, he says, that shift represents ‘a tremendous opportunity’. Araujo is careful to frame the company’s ambitions in broader terms than production volumes alone: Bridgestone’s goal, he explains, is not simply to manufacture tyres but to act as a strategic partner to OEMs, fleet operators and the replacement market, helping customers navigate an industry evolving at unprecedented speed.

Customer expectations, in his view, have shifted considerably. The market now demands products that deliver strong performance, safety and efficiency while also offering solutions that help optimise operations – which is why Bridgestone continues to strengthen its manufacturing capabilities and draw on the group’s global expertise to meet those evolving needs. He also points to the regionalisation of supply chains as a further tailwind, arguing it presents an opportunity to strengthen North America’s competitiveness and respond more quickly to market demands. “I am convinced that Mexico will continue to play an increasingly important role within this ecosystem, and at Bridgestone we are committed to contributing to that evolution through technology, talent and a long-term vision,” says Araujo.

FROM FACTORY FLOOR TO STRATEGIC HUB

What sets Mexico apart, Araujo argues, is not manufacturing capability alone. The expertise built up over decades and its proximity to North America’s key markets allow the tyre major to respond quickly to customer needs while working closely with OEMs, distributors and business partners throughout the region. For Araujo, this reflects a broader shift in how success is defined across the industry. “Success today is no longer defined solely by building a great product. It also depends on understanding where the industry is heading and having the ability to evolve alongside it,” explains Araujo.

His outlook for the country remains firmly upbeat. Araujo describes Mexico as having a solid industrial base, a strategic location and, above all, talented people with an extraordinary ability to adapt to an ever-changing environment – strengths he believes position the country for continued growth in the years ahead.

FORTY-FIVE YEARS AT CUERNAVACA

Araujo is quick to underline the continued significance of Bridgestone’s Cuernavaca plant, which has anchored the company’s Mexican operations for more than four decades and, in his words, “continues to play a strategic role within our regional operations.”

Competitiveness, the Bridgestone executive says, is about more than technology and infrastructure alone – it also depends on the ability to respond quickly to a constantly evolving market. Accordingly, the focus at Cuernavaca has been on continuously strengthening productivity, quality, operational flexibility and sustainability, ensuring the plant remains competitive and resilient within Bridgestone’s global manufacturing network. Rather than preparing for any single anticipated market shift, Araujo says, “the company is building an agile, efficient operation ready to meet the future needs of both the industry and its customers.”

DEEPER TIES WITH OEMs

Bridgestone’s relationship with vehicle manufacturers has evolved substantially, Araujo says. It is no longer simply a matter of developing a tyre that meets specific technical requirements; the company now collaborates with manufacturers from the earliest stages of development to better understand each vehicle’s needs and the driving experience they want to deliver to consumers. “Electrification, connectivity and higher performance standards are reshaping the industry, prompting increasingly specialised solutions and deeper collaboration with OEM partners worldwide,” adds Araujo.

He also identifies a shift in how customers weigh up value, with decisions now driven more by total cost of ownership and lifecycle value than by initial purchase price – a perspective that, Araujo says, shapes how Bridgestone develops products and works alongside manufacturers. According to Araujo, close collaboration with OEMs allows the company to anticipate industry trends and translate those insights into better products, something he regards as one of the key factors behind Bridgestone’s global leadership in technology, quality and performance.

COMMERCIAL FLEETS AND THE RISE OF RETREADING

As per Araujo, the commercial vehicle segment is highly strategic for Bridgestone given its close links to the growth of logistics, transportation and distribution. Behind every fleet are businesses looking to operate more efficiently, reduce costs and keep vehicles on the road – and purchasing decisions have shifted accordingly, moving beyond simple tyre quality to encompass total cost of ownership, cost per kilometre and overall operational efficiency.

Within that shift, Araujo singles out tyre retreading as one of the clearest examples of the circular economy in the industry, extending tyre life while maximising operational efficiency without compromising safety or performance. “This evolution is pushing Bridgestone to go beyond the product itself, offering an integrated value proposition that combines high-performance tyres with services designed to improve fleet productivity,” says Araujo.

Bandag, Bridgestone’s retreading business, sits at the heart of that strategy. “Through Bandag, this approach becomes a strategic solution with an even greater impact,” Araujo says. Sustainability, in his view, is no longer a standalone concept but a business imperative: fleet operators want to reduce their environmental footprint while also optimising costs, maximising resource utilisation and improving profitability, which is precisely where Araujo believes Bandag delivers meaningful value. He frames the approach as part of a lifecycle-wide sustainability commitment, one fully aligned with Bridgestone’s E8 Commitment and its aim of helping customers strengthen their competitiveness while contributing to a more efficient, sustainable transportation industry.

NAVIGATING A VOLATILE SUPPLY CHAIN

Global tyre makers are contending with volatile raw material costs and shifting trade policy. Araujo says the past few years have taught the industry that resilience is just as important as efficiency. Today’s supply chains must be agile enough to adapt to fluctuating raw material costs and an increasingly dynamic global trade environment, says Araujo.

Against that backdrop, Bridgestone is focused on building a flexible operation closely connected to local market needs. The growing regionalisation of supply chains presents an important opportunity to strengthen North America’s competitiveness, with Mexico playing a strategic role by enabling faster, more responsive service to the market. Data-driven decision-making and digital tools have become key competitive differentiators, improving visibility

across the value chain and helping the company anticipate customer needs. As he puts it, the objective is “not simply to respond to market changes but to build a resilient organisation capable of evolving sustainably alongside the industry and our customers.”

DEFENDING A PREMIUM POSITION

Price sensitivity remains a fact of life in the tyre market, but Araujo is firm that Bridgestone’s premium positioning rests on more than the sticker price. Price, he acknowledges, will always be an important part of the purchasing decision – but looking at the conversation solely from that angle tells only part of the story. Araujo adds that what truly matters is the value a tyre delivers across its entire lifecycle: customers who choose Bridgestone are investing in technology, safety, durability and long-term performance, attributes that translate into a lower cost per kilometre and a lower total cost of ownership, particularly for commercial fleets.

“Being a premium brand is not about having the highest price. It is about delivering the highest return on investment through high-quality products and value-added solutions,” Araujo says. That commitment, he believes, is what allows Bridgestone to build long-term trust with customers and sustain its position as a premium brand in an increasingly competitive market.

FROM REACTIVE TO PREDICTIVE

Digital technology is reshaping fleet management, and Araujo sees Bridgestone moving from a reactive posture to a predictive one. Technology, he says, now allows the company to anticipate issues, optimise resources and make data-based decisions in ways that were unimaginable only a few years ago. For fleet operators in particular, Araujo believes this represents a significant transformation – it is no longer just about having a high-performance tyre but about having access to insights that improve vehicle availability, optimise maintenance and reduce total cost of ownership.

Araujo describes digitalisation as a natural extension of Bridgestone’s core products rather than a separate line of business, with connected solutions and data analytics helping the company deliver actionable insights that improve operational performance. Looking ahead, Araujo expects data-driven decision-making to become one of the industry’s greatest competitive advantages. “The true value of technology is not simply collecting data but turning that information into actions that make operations safer, more efficient and more profitable,” Araujo says. That trajectory mirrors the company’s own evolution from tyre manufacturer to strategic partner combining premium products with innovative solutions, he adds.

SUSTAINABILITY AS A DAILY DISCIPLINE

Bridgestone has promoted its E8 Commitment globally, and Araujo says the framework shapes priorities at the local level in Mexico too. Sustainability, in his view, is often narrowly associated with reducing environmental impact, when in fact it represents something much broader – making better decisions every day that create value for customers, employees, the communities in which the company operates and the environment. Araujo explains, “The E8 Commitment serves as the foundation for that approach, guiding efforts to strengthen product safety and quality, develop people and continuously improve operations and manufacturing processes.”

It also shapes how Bridgestone collaborates with customers, he says, whether through higher-performing products, expanded solutions such as tyre retreading or new technologies – the underlying objective being to help customers operate more efficiently while creating value across the entire tyre lifecycle. Ultimately, the E8 Commitment is a reminder that sustainable business growth must go hand in hand with creating a positive impact, a balance he sees as central to what Bridgestone Mexico continues to build.

THE NEXT FIVE YEARS

Asked to look further ahead, Araujo believes the industry is entering an entirely new chapter – one in which the challenge is no longer simply building better vehicles and tyres but building a more competitive, integrated industry capable of responding quickly to an ever-changing marketplace. He sees Mexico as unusually well positioned to capitalise on that shift, citing the country’s strong manufacturing base, highly skilled talent and strategic position within the region as the growing regionalisation of supply chains continues to strengthen North America’s competitiveness.

“For Bridgestone Mexico itself, the priorities ahead are threefold: strengthening the competitiveness of operations, accelerating customer-centric solutions and advancing sustainability initiatives that create value throughout the tyre lifecycle. More than anything, the company wants to anticipate market trends and help customers navigate the challenges they will face in the years ahead,” Araujo adds.

Pressed to sum up his vision in a single sentence, Araujo offers a line that captures his broader philosophy: “The future will not belong only to the companies that build the best products but to those that best understand their customers and evolve alongside them.” That, he says, is the kind of company Bridgestone Mexico is committed to building – one defined less by the products it makes today than by how quickly it can adapt, innovate and deliver meaningful results for the customers who place their trust in it. As Araujo puts it, that is the challenge that excites him most, and the one that will define the company’s success in the years to come.

Mexico has become one of the most strategically important markets for global tyre manufacturers as shifting trade policies, supply chain realignments and the growing push for premium products reshape investment decisions across the Americas. For JK Tyre & Industries, the country is no longer simply its largest manufacturing base outside India. It has emerged as the centrepiece of the company’s regional growth strategy, providing proximity to the US market, access to USMCA trade benefits and a platform to strengthen its presence in both original equipment and replacement segments.

To support that ambition, JK Tyre has committed USD 75 million towards expanding and modernising its Mexican operations through JK Tornel, while simultaneously investing in automation, product development, exports and premium passenger vehicle tyres. The company is also using its Mexican technology centre to develop region-specific products and strengthen collaboration with its global R&D network.

In this exclusive interview with Tyre Trends, Anshuman Singhania, Managing Director of JK Tyre & Industries, explains how A three- decade acquisition has evolved into a strategic gateway to the Americas, why Mexico has become increasingly valuable amid tariff uncertainty, and how the company plans to shift its focus from volume-led growth to value creation over the coming decade.

FROM ACQUISITION TO ANCHOR

Mexico, for JK Tyre & Industries, has stopped being a line item on a manufacturing map. It has become something closer to a second home base. The company now runs 11 manufacturing plants worldwide. Nine are in India, two are in Mexico, and together they hold a combined annual capacity of 38 million tyres. It is, the company says, part of its globally benchmarked, sustainable manufacturing footprint.

Anshuman Singhania, the company’s Managing Director, is unambiguous about where Mexico sits within that picture. “Mexico is far more than an offshore manufacturing outpost for us,” he says.

The Mexican business, Compañía Hulera Tornel, S.A. de C.V. (CHT), is not a recent bolt-on. It was established in Mexico City on 9th November 1951. JK Tyre today holds a 99.98 percent stake in JK Tornel S.A. de C.V. and its group entities. “In the recent years, JK Tornel has delivered satisfactory performance emerging as a significant contributor in our global story,” Singhania says.

It forms, he adds, “an integral arm” of a technical ecosystem that spans Mysuru, Chennai and Milan – the trio that drives the group’s research and technology capabilities. It is Tornel, more than any other outpost, that gives JK Tyre its read on tariff and trade volatility across the Americas.

A USD 75 MILLION BET ON TARIFFS & PREMIUMISATION

That reading has translated into hard capital. The company has committed USD 75 million to a phased capacity expansion in Mexico. The first tranche, worth USD 27.5 million, is already under way. Singhania traces the logic back to geopolitics as much as growth. “Tariff and trade volatility across North America has made local, in-region manufacturing more valuable than ever,” he says. Mexico, he notes, offers proximity to the US market alongside USMCA-linked trade advantages.

Premiumisation runs through the strategy. JK Tyre is building capability in the higher-margin, above-16-inch rim segment. That is the reason, Singhania explains, a new northern warehouse was set up specifically for that category. The company began OE supplies to Kia Mexico in the 2026 financial year, with more SKUs planned. That, in turn, demanded a level of manufacturing consistency he says “only modernised, automated lines can deliver.”

The investment, Singhania says, is explicitly about “preparing the business for premium segment growth, expanding the high-margin ATV portfolio, and growing sales in mass-merchandise channels,” in step with efforts to optimise the wider product mix.

AUTOMATION WITH A HUMAN FACE

Within that first funded phase, the money is weighted towards capacity and automation. Ultra-modern machinery is being added across critical stages of tyre manufacturing, including key uniformity systems. The goal is to strengthen process precision and product consistency while readying plants for premium and higher-value categories.

But Singhania is careful to frame automation as a people project as much as a hardware one. The inauguration of a Dojo Training Centre in Mexico, he says, “testifies to our belief that automation pays off if the workforce is trained to run it.”

On the research side, Mexico already hosts one of the group’s four global technical centres. It functions as a Satellite Tech & Innovation Centre, feeding both OEM and aftermarket product development for Europe and the Americas.

CHASING THE EXPORT OPPORTUNITY

Export momentum has followed the investment. This year alone JK Tornel added 40 new distributors, including 20 in Mexico itself, taking its total past 140. It also launched 32 new tyre sizes specifically for the US market and expanded warehousing in northern Mexico and Brazil. Strategically, Singhania places Mexico inside what he calls the group’s “Export Rebalancing and China+1 Advantage” thesis. “Trade protectionism and geopolitical shifts are making reliable, in-region manufacturing bases like Mexico structurally more valuable,” he says.

The company, he adds, is building region-specific export strategies around that reality.

RESILIENCE AS STRATEGY

Navigating that volatility day to day, the JK Tyre MD argues, comes down to fundamentals rather than firefighting. “Our response is simple. Strengthen domestic distribution, sharpen product mix and expand capacity ahead of demand,” Singhania says.

He credits digitalisation, cross-functional collaboration and continuous capability building with lifting cost efficiency and productivity. “Long-term partnerships have kept service levels high despite market volatility, reinforcing the business’s broader resilience,” Singhania says.

ENGINEERING FOR THE AMERICAN DRIVER

That resilience is being engineered into the product itself. The new passenger tyres under development for Mexico and US are being shaped by evolving customer expectations around durability, safety and fuel efficiency. According to Singhania, customers want long tread life, dependable wet and dry braking, reduced rolling resistance for better fuel economy and a quieter, more comfortable driving experience.

Rising awareness of sustainability and total cost of ownership is also feeding into product development, the JK Tyre executive notes – tyres designed to combine performance, longevity, efficiency and environmental responsibility in a single package.

THE AI THREAD

Technology, more broadly, is the thread running through JK Tyre’s next five years. “Digital transformation, supported by AI-driven processes and a strong customer-centric focus, forms the cornerstone of JK Tyre’s R&D strategy,” Singhania says.

By integrating automation, artificial intelligence and core tyre engineering, he says, the company has positioned itself as “a pioneer across multiple technological domains” – an approach he credits with setting new benchmarks in tyre research and development.

WINNING WITHOUT RACING TO THE BOTTOM

Singhania insists that leadership in Mexico’s mass-merchandise segment was not bought with price. “Rather than competing purely on price, we have remained focused on product differentiation, disciplined execution and long-term customer partnerships,” Singhania says.

He adds that discipline defines the company across India, Mexico and more than 100 countries worldwide. The next phase of growth, as he sees it, lies in premium passenger vehicle tyres, larger rim sizes, SUVs, high-performance tyres and expanding OEM partnerships.

THE MEXICO-MYSURU FEEDBACK LOOP

Underpinning much of this is Mexico’s Satellite Product Development Center. It works closely with customers and OEM partners across North and Latin America to understand regional driving conditions, regulatory requirements and evolving market needs. Those insights feed into the Global Technology & Innovation Center — RPSCOE — in Mysuru, speeding up product development and validation.

The centre, Singhania says, plays a key role in developing region-specific tyres “while strengthening our competitiveness across international markets.”

Sourcing is being globalised too. Bringing tyres from Southeast Asia through the Mexican business, he says, reduces sourcing costs, increases supply flexibility and expands product availability. That, in turn, allows the company to price competitively while better serving customers in both Mexico and the US.

THE NEXT DECADE

Asked to look 5 to 10 years out, Singhania resists the temptation to talk in terms of volume. “The Mexico business is an important and growing part of JK Tyre’s international operations,” he says.

He describes Tornel as the group’s route to “strategic access to the American markets.” The priorities he lists – pricing discipline, receivables security, market-specific portfolio alignment and long-term competitiveness – are pointedly not about chasing short-term volume.

That same discipline shapes how he defines success closer to home. “At JK Tyre, we measure success with the value we can offer our partners, our customers and our entire JK Tyre family,” he says.

For Tornel specifically, in three years’ time, he would judge it “by how much of our growth has shifted from volume to value” – alongside the resilience to navigate tariff dynamics, deeper distribution and a stronger premium position across its markets.

European replacement tyre demand rose in the second quarter of 2026, driven by strong growth in truck and bus segments, according to industry data published by Tyres Europe.

“European replacement tyre demand strengthened in Q2 2026, particularly truck and bus tyres,” said Adam McCarthy, Secretary General of Tyres Europe.

Consumer tyres, which include passenger cars, SUVs and light commercial vehicles, increased by three percent year on year in the quarter, lifting volumes for the first half by two percent. Growth was led by all-season tyres, which rose 15 percent in the quarter and nine percent in the first half.

By contrast, summer tyres declined by two percent, while winter tyres edged down one percent in the quarter and remained five percent lower over the first half, continuing a shift in demand towards all-season products.

Truck and bus tyres recorded the strongest performance, rising 13 percent in the second quarter and seven percent in the first half. The increase came despite geopolitical pressures and elevated fuel and energy costs, with freight activity and business sentiment remaining resilient.

Agricultural tyres continued to contract, declining seven percent in the quarter, although at a slower rate than earlier in the year. Moto and scooter tyres rose one percent in the quarter and were four percent higher across the first half.

Tyres Europe said miles travelled declined during the period, reflecting higher average fuel prices and weaker consumer sentiment linked to the ongoing conflict in the Middle East. Imports, however, rebounded after sharp declines in the first quarter.

Separate data showed changes in trade flows. Imports of passenger car, light commercial and truck tyres into the EU27 and UK fell six percent year on year between January and May 2026. Shipments from China dropped 24 percent, reducing its share to 58 percent from 72 percent a year earlier.

Suppliers in south-east Asia increased their presence, with their share rising to 19.9 percent from 7.4 percent, led by Thailand and Vietnam.

The shift followed an anti-dumping investigation by the European Commission, which concluded that Chinese imports had entered the market at unfair prices. Definitive duties ranging from 4.3 percent to 45.3 percent were imposed from July 8, 2026 for an initial five-year period.

In the truck and bus segment, imports into the EU27 and UK from non-European markets rose by almost 27 percent in the first five months of the year. Thailand and Vietnam together accounted for nearly 61 percent of volumes, reflecting a broader shift in supply away from traditional sources such as China, Korea and Japan.

Tyres Europe represents 14 corporate members whose combined global sales account for around 70 percent of the worldwide tyre market.