Making a tyre is an extensive process that includes everything from formulation to testing. With the advancement in software-defined technology, tyre testing is increasing within a simulated environment. However, as real as the rubber wheel is, its testing in real-world environment stands as imminent in future course despite the current trend of simulation.

Alluding to this, Black Donuts Head of Tyre and Material Development Ilkka Lehtoranta told Tyre Trends, “Alongside the advanced laboratory equipment and various simulation methods, real-world tyre testing remains essential now and in the future. Physical testing in diverse conditions is critical for final evaluation and validation. Real-world tyre testing will continue to play a significant role moving forward. At Black Donuts, we offer comprehensive tyre testing services through our subsidiary, BD Testing. This company specialises in outdoor testing to ensure that products perform reliably in all environments.”

Commenting on the role of simulation in tyre development, he said, “Simulation plays a critical role in tyre development, offering a proven and essential part of the design process. One key type of simulation is finite element analysis (FEA), a mathematical method used to model and simulate physical phenomena. FEA is widely employed across industrial sectors including tyre manufacturing to predict and validate design performance before creating physical prototypes.”

“For tyre development, simulation tools provide significant advantages. By conducting design verification and validation virtually, companies can reduce the need to produce experimental tyre, which saves raw materials and minimises waste. This approach not only supports environmental goals but also accelerates the development timeline, allowing for faster iterations and refinements. Black Donuts integrates various simulation methods into its development process, heavily relying on the results to optimise designs,” he added.

Testing facilities

The Finnish company offers comprehensive tyre testing services with a primary focus on outdoor testing rather than indoor facilities. While indoor testing facilities are widely available globally, including in Europe, Asia, India and North America, Black Donuts has chosen to concentrate on outdoor testing. The company leverages the expertise of skilled test engineers and drivers, who understand the nuances of environmental and external factors, to deliver dependable testing outcomes. 

“We operate a proving ground in northern Sweden, where winter tyres are tested under snowy and icy conditions. Additionally, we have a testing centre in Finland’s Tampere region, which serves as a hub for evaluating tyre properties across a range of conditions. The facilities enable grip testing on ice, snow, wet and dry surfaces; noise testing for internal and external evaluations; handling and comfort assessments; aquaplaning analysis and tailored tests developed to meet specific customer needs,” informed Lehtoranta.

He mentioned that test drivers are central to Black Donuts' outdoor testing process as their expertise in assessing tyre behaviour is critical for validating designs and providing feedback to engineers. This collaboration ensures the test results are seamlessly integrated into the design and development process, allowing engineers to refine tyre properties based on real-world performance insights. 

Winter testing is conducted during the colder months to utilise natural snow and ice conditions. While the company does not have an indoor snow-testing facility, it makes use of local resources such as ice halls for ice-related evaluations. For summer tyres, the focus shifts to testing grip, handling and noise levels under both dry and wet conditions. 

In addition to testing during tyre development, Black Donuts supports homologation and certification processes. Through its subsidiary, BD Testing, the company provides accredited testing services and official test reports required for certifications by authorities. This includes European homologation tests for snow and ice performance, as well as specialised assessments such as road wear impact evaluations for studded tyres in Scandinavian markets. 

The company also conducts internal testing to collect data, monitor market trends and benchmark tyre performance. “This continuous research helps us to identify industry standards and emerging trends, ensuring that our tyre development projects remain innovative and competitive,” averred Lehtoranta.

Industry peek

Black Donuts provides end-to-end solutions for the global tyre industry, catering to both manufacturing and tyre research and development needs. Its services cover tyre design and production, materials research and development, making the company a comprehensive partner for tyre manufacturers globally. Whether supporting the establishment of new tyre plants, upgrading existing facilities or offering specific technical expertise, it has a broad portfolio of engineering and technological solutions. 

In production, Black Donuts assists manufacturers with everything from setting up greenfield projects to improving brownfield facilities. For existing manufacturing lines, the company conducts thorough audits to identify bottlenecks, inefficiencies and quality issues. The focus often includes increasing automation, enhancing productivity, reducing manufacturing costs, improving quality, minimising scrap and waste and even reducing tyre weight. These solutions are tailored to meet the specific demands of the client. 

For greenfield projects, it offers turnkey solutions. These include site selection support, plant layout design, architectural planning, defining machinery specifications, automation strategies and utility calculations. During the execution phase, an on-site engineering team supervises construction, machinery installation, commissioning and the ramp-up of production processes. The company also trains operators, troubleshoots quality issues and supports clients in improving efficiency. The level of post-production support is flexible with options for ongoing assistance tailored to the client's needs. 

Alluding to how the design and production process differ across regions, the executive said, “The design and production processes themselves are generally consistent across regions. However, automation levels may vary based on factors like labour costs and plant location. European facilities, for instance, often require higher automation levels due to higher manpower costs, though automation is increasingly being adopted in Asia as well. This trend has significantly reduced manpower requirements in tyre manufacturing globally, driven by advancements in automation technologies.”

Research and development

In tyre development, significant trends include the growing demand for sustainability, increased automation in production processes and evolving design needs tailored to regional and market-specific conditions. Tyre materials development is a subset of tyre development but is critical due to its role in addressing environmental and performance challenges. Black Donuts works on both these aspects, helping clients innovate while navigating changing demands in the tyre industry.

The push for sustainability is the most pressing challenge in tyre material development. There is an increasing emphasis on replacing fossil-based materials with sustainable alternatives like bio-based and recycled raw materials. Black Donuts plays a pivotal role in identifying and testing new materials available in the market, integrating them into tyre compounds and ensuring its compatibility with production processes.

In addition to working with existing materials, Black Donuts has initiated its own research and development efforts to explore innovative, out-of-the-box sustainable solutions. These include new bio-based raw materials currently under internal development, which are expected to be launched soon.

On the tyre development front, it offers comprehensive services for creating new tyre lines across segments like passenger car radial (PCR), truck and bus radial (TBR) and off-the-road (OTR) tyres. The designs cater to various markets including Europe, US, Asia and Africa, ensuring optimal performance under different environmental and regulatory conditions.

Customisation for specific client needs, whether summer or winter tyres, and adapting designs to suit regional preferences are also part of the company's everyday operations.

Competitive edge

The rapid evolution of technology, automation and sustainability trends demands agility and adaptability. Black Donuts maintains an active presence in the market, staying updated on global developments by leveraging its extensive partner network, including machinery and raw material suppliers, to gather insights and anticipate emerging trends.

Alluding how the company selects partners, the executive revealed, “The partner selection process is fundamental to delivering high-quality, innovative solutions. Many members of our team have decades of experience and longstanding relationships with suppliers, which provide a solid foundation for selecting trusted partners. Besides, there are several factors that are taken into account to source new partners.”

One of the most crucial factors in selecting partners is the technological capability. Black Donuts prioritises partners that offer cutting-edge technologies, which can add value to both the company and its customers. It also carefully evaluates the ability of potential partners to deliver machinery, raw materials and components as promised. Moreover, the company seeks partners who share values of sustainability.

While Black Donuts draws on its established relationships with trusted suppliers, the company remains proactive in sourcing new partners and exploring the latest advancements in technology and materials.

Sustainability

The executive noted that in the next five years, the proportion of renewable or bio-based materials in tyre production is expected to remain relatively modest. “Currently, aside from natural rubber, which makes up around 20 percent of tyre materials, the use of other renewable materials is almost negligible. While the industry faces challenges in sourcing and incorporating bio-based and recycled raw materials, it is estimated that within five years, the share of such materials could reach 30-35 percent of the total tyre content,” said Lehtoranta.

Alluding to industry goals of incorporating 100 percent renewable materials in tyres by 2050, he noted, “Incorporating 100 percent renewable materials in tyres is possible, but it will require collective action across the entire industry. All stakeholders must align and collaborate towards this common goal. Many mid-sized and smaller companies may struggle with this transition on its own, which is where industry partners can offer valuable support. This is also why companies are increasingly focusing on researching and developing new bio-based raw materials in order to expand the availability of these alternatives in the market. However, scaling these innovations to a commercial level remains a challenge as many promising ideas have not yet been fully realised on a large scale,” informed the official.

He also noted that achieving sustainability in tyre production will undoubtedly require significant investment. A key challenge is that sustainable raw materials are currently more expensive than conventional alternatives. Unfortunately, many end consumers are not yet willing to pay a premium for tyres made with sustainable materials.

Market presence

Black Donuts has a presence on all continents. “We have a strong market footprint, serving a wide range of regions. For instance, of the 25 largest tyre manufacturers, 20 have been or are currently our customers. We also have upcoming projects across Europe, Asia, North America, South America and Africa, highlighting our global reach and ongoing expansion,” said Lehtoranta.

He added, “In terms of revenue, our biggest business segment revolves around providing end-to-end solutions for tyre plants including services related to tyre factory setup and operations. This is the largest segment in terms of financial impact. Additionally, tyre and material development is another major part of our business contributing significantly to our overall revenue.”

North America is one of its largest markets, followed by Europe and Asia, though revenue distribution can vary year by year due to the nature of projects.

He also noted that regulations play a crucial role in driving the business. The regulation concerning studded tyres, for instance, which has been important in the European market. Winter tyre regulations, particularly the requirement for the snowflake symbol on tyres, are also significant, especially in Nordic countries.

Additionally, a newer regulation being prepared by the European Commission concerning tyre abrasion, which is becoming a more prominent issue due to sustainability concerns, is also slated to drive business.

Commenting on the same, the executive said, “Tyre abrasion, especially concerning microplastic emissions, has gained attention in Europe as tyres are recognised as a major contributor to microplastic pollution. The industry and authorities are now focusing on reducing this issue by improving tyre wear properties. The goal is to ensure that tyres generate less microplastic per kilometre driven. This is particularly relevant in regions with snowy and icy roads, where tyre performance and durability are critical.”

Furthermore, he highlighted that the difference between snow and ice significantly impacts tyre performance. Ice presents much lower friction than snow, which is why ice poses a more challenging driving condition. Tyres perform worse on ice, resulting in longer stopping distances. In regions with icy roads, like the Nordic countries, manufacturers often use studs to enhance grip on ice, improving safety by reducing braking distances.

Expansion and demand

The executive mentioned that the company is expanding in the Asian and North American markets. “While winter tyres are a big demand in these regions, it's important to note that winter tyre usage varies by region. In China, for example, there is a significant demand for winter tyres, particularly in colder regions, and Japan has a large market for them as well, with regulations encouraging its use. North America, especially in regions with harsh winters, also has a strong market for winter tyres,” said Lehtoranta.

“Despite the slowdown in the European market and concerns about the US market, we still see North America as a strong growth area for us. We haven't noticed any significant slowdown in our business there and the market remains promising. However, we also see great potential in Africa, where we are seeing a lot of investment activity,” he added.

Answering what factors led the company to explore avenues in Africa, he said, “Several factors are driving the growth potential in Africa. Currently, there is little local tyre manufacturing in the region and many countries are looking to establish local industries to boost the economies and create jobs. Additionally, Africa has significant natural resources including natural rubber and oil, which can be used to produce synthetic rubbers and other raw materials needed for tyre manufacturing. Local production would enable companies to add value by refining these raw materials into finished products like tyres, creating a more sustainable and profitable cycle.”

Commenting on future plans, he said, “Our focus will be on the entire tyre lifecycle, from raw materials to production, performance and ultimately, the end of life of the tyres. We are working on developing solutions that handle tyre disposal and recycling with the goal of creating a fully sustainable tyre manufacturing process. This approach would ensure that our products and services are environmentally friendly throughout the entire supply chain.”

Industry challenges

Tyre manufacturing factories often encounter several challenges when setting up greenfield and brownfield projects. One of the primary challenges is managing the project’s schedule and budget, ensuring that the project stays on track and within financial constraints. Another critical aspect is reaching the targeted capacity for the plant, which can be challenging given the complexities of large-scale projects.

Additionally, there are technological hurdles that the company must overcome, especially in terms of innovation and research. Developing new technologies and sustainable solutions for the industry is not an easy task and requires a long-term commitment.

In terms of business challenges, the company is focused on technological innovation and research. Developing cutting-edge technologies and creating sustainable solutions for tyre manufacturing is a key priority. However, this process is often time-consuming and requires significant effort.  This is where Black Donuts’ know-how and cutting-edge solutions come into play. The company is currently focused on pushing the boundaries of what is possible within the tyre industry, particularly regarding sustainability.

Regarding operations in India, the company is in the early stages of its expansion. Although it does not have a physical office in India yet, it has begun operations under the leadership of a technical director. The goal is to develop the business in India and gradually establish a technical centre that will focus on tyre simulation and other technical areas of tyre development.

The Chinese market is another area of focus. While it is not the largest market for the company, it remains an important one, with ongoing projects and customers in China. The company recognises that China is a significant player in the global tyre industry, and it continues to engage with the market, even though it is not the biggest revenue driver.

Additionally, the company is observing a trend where manufacturing is returning from Asia to local markets, a shift that began before the pandemic and has been accelerated by it. This trend is visible in regions like Africa, North America and Europe, where companies are establishing local production to mitigate supply chain issues and reduce reliance on distant markets. This shift represents a significant opportunity for the company to expand its operations and grow its presence in these regions.

In the state-of-the-art facilities of Huai’an, China, cutting-edge automated production lines craft precision steel cord that will soon strengthen tyres rolling across India’s expanding highway network. For Zenith Steel Group, a USD 28 billion steel and technology leader, these gleaming threads represent an exciting opportunity to support India’s remarkable automotive growth story.

The opportunity is extraordinary. India’s steel cord market, currently at 200,000 tonnes annually, is set to nearly double within a decade as the world’s largest democracy accelerates its infrastructure development and vehicle ownership continues its impressive rise. For Zenith, recognised among China’s top 500 enterprises, partnering with India’s growth represents a natural strategic alignment.

“India is a ‘must win’ place for us,” enthuses Sheng Rongsheng, CEO of Zenith’s International Business, highlighting the company’s commitment to supporting what executives view as the world’s most promising automotive market.

The timing reflects India’s automotive evolution success story. The country’s tyre industry is experiencing a remarkable transformation from traditional technologies to advanced radial systems, creating unprecedented opportunities for innovative steel cord solutions. This transition has generated significant demand while showcasing India’s unique engineering capabilities in adapting global technologies to local requirements.

Zenith’s expansion into India exemplifies positive global collaboration trends. As companies worldwide embrace supply chain diversification, the Chinese innovator’s investment in India demonstrates how international partnerships can deliver mutual benefits through technology transfer and competitive alternatives.

The initiative promises substantial advantages for Indian tyre manufacturers, including access to advanced manufacturing technologies, competitive pricing options and enhanced supply chain resilience. For Zenith, success in India represents validation of its evolution from regional producer to global technology partner.

With India’s automotive sector poised for continued expansion, this collaboration highlights how international expertise can support domestic growth while fostering innovation across the global tyre industry.

In the sprawling industrial complex of Huai’an, China, massive automated production lines hum with precision, producing fine steel cord that glistens like gold yet is strong enough to reinforce truck tyres that traverse India’s expanding highway network. This is the manufacturing heart of Zenith Steel Group’s ambitious global expansion, and India is squarely in its crosshairs.

The USD 28 billion Chinese steel conglomerate, which ranked 175th among China’s top 500 enterprises in 2022, is making calculated moves to capture a significant share of the global (and also India’s) growing tyre reinforcement materials market. With plans to reach 1.6 million tonnes of annual production capacity for high-strength steel cord, bead wire and hose wire, Zenith is positioning itself as a formidable competitor in a market currently dominated by a single established player.

“Our ambition is to become the leader in the worldwide steel cord industry, and needless to say, India plays a critical role in our global strategy given the fact that it has the largest population in the world, and therefore, we believe its market potential on top of today’s sizeable demand of about 200 kt a year is bigger than anybody else. So India is a ‘must win’ place for us,” says Sheng Rongsheng, CEO of Zenith’s International Business.

This strategic push comes at a time when India’s tyre industry is rapidly evolving, driven by infrastructure improvements, vehicle market growth and increasing tyre radialisation rates. The timing appears opportune but breaking into India’s notoriously challenging market will test Zenith’s technical capabilities, localisation strategies and cost competitiveness in what industry experts describe as one of the world’s most demanding tyre markets.

EVOLUTION OF INDIA’S STEEL CORD MARKET

India’s steel cord market has undergone dramatic transformation in recent decades, evolving from a predominantly bias tyre market to increasingly adopting radial technology, which requires steel cord reinforcement.

“The Indian market is one of the few markets where bias tyres have been successful and still are in certain segments. This is due to road and usage conditions like loading and tyre inflation pressures,” explains Srikanth Chakravarthy, Designated Partner and Managing Director of Zenith India, who is representing Zenith in India after spending over 25 years in the steel cord business. “However, over the last three decades, road infrastructure has evolved quite rapidly not only in terms of new roads but quality of highways as well. This helped radialisation and therefore the demand of steel cord in India.”

This transition has created significant market opportunities but also unique challenges. Indian tyre manufacturers have developed distinctively local requirements that differ from global standards, driven by the country’s specific road conditions and vehicle usage patterns.

“Steel tyre cord itself has seen an evolution with initial designs being an outcome of international designs and choices and foreign collaborations. But Indian tyre makers were quick to study local requirements and design in-house leading to rapid product portfolio changes that saw the needle moving, for instance on tensile, from normal tensile to high tensile and now super and ultra tensile,” Chakravarthy notes. “The evolution has been also in terms of the design of cords that are more lightweight, stronger and now there is a big focus on sustainable solutions embracing circularity and reduced Co₂ emissions.”

According to the company, Zenith is already engaging with multiple Indian tyre manufacturers including Apollo Tyres, MRF, JK Tyre, CEAT, BKT, ATG, MPTL (Ascenso) and Ralson, and also with international players like Yokohama, Goodyear, Bridgestone and Continental. Several companies including JK and BKT have confirmed homologation approvals, marking critical early success for Zenith’s market entry strategy.  

Industry analysts estimate that India’s steel cord market is currently around 200,000 tonnes annually with significant growth, almost double, expected in the coming decade as vehicle ownership continues to expand and tyre radialisation rates increase, particularly in the commercial vehicle segment.

THREE-PRONGED STRATEGY

Zenith’s approach to the Indian market follows a carefully staged strategy that balances immediate export opportunities with long-term localisation goals. The company’s leadership team is clear about the methodical approach they’re taking.

“The approach can be divided into three parts,” explains Chakravarthy. “In the short term, the focus is on getting all approvals done quickly from the plant base in Huai’an. In the medium term, as commercial sales initiate, it is to offer outstanding service with warehousing, consignment stock, local technical service, co-development and efficient logistics. In the long term, the plan is to explore partnerships that enable a local footprint or a non-China-based footprint that can continue to offer the full value proposition with the added advantage of local presence.”

This methodical approach reflects Zenith’s understanding of Indian market requirements, where local presence is often a key differentiator. The company is already responding to specific customer requests for enhanced service offerings as Kelfen Zhu, International Sales Director, acknowledges, “Local warehousing has been mentioned by Indian customers, Zenith is seriously working on the solution.”

While the company currently manufactures in China with no production facilities in India, its leadership is clearly signalling future localisation plans that could include partnerships or direct investment. “To become No.1 in this market over time, there are two steps to go: first to become No.1 among all the import players, then when condition allows, to build up local production capacity and eventually become No.1 among all the steel cord suppliers to this market,” shares Rongsheng, outlining the company’s ambitious goals.

The timeline for such moves remains undefined but appears to be part of a long-term vision rather than an immediate priority. Chakravarthy suggests, “As mentioned before, this is part of the long-term strategy and we are already talking to several local players. In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market.”

QUALITY MANAGEMENT: THE CORNERSTONE OF CUSTOMER ACQUISITION

For Zenith, quality management represents the foundation of its customer acquisition strategy in India. The company received IATF 16949 certification in February 2024 alongside ISO 9001, ISO 14001 and ISO 45001 certifications – credentials that are essential for supplying to global and Indian tyre manufacturers.

“Zenith is committed to building a robust quality management system that is customer-centric, process-oriented and integrates advanced digital solutions to realise full-process traceability and intelligent decision-making based on AI model,” states Bian Keping, Quality Manager at Zenith Steel.

This quality management system adopts both reactive and pro-active approaches to customer feedback. “For reactive way, we respond quickly to customer complaint if and when some failure happened at customer side. The systematic problem-solving mechanism, i.e. 8D methodology, would be triggered to resolve the issues. For pro-active way, we collect customers’ voice via plant visit, technical forum, questionnaire etc. we also seek feedback with an open mind when customers visit us for audits and visit. All VOC will be seriously summarised, analysed and archived to guide both product development and process improvement process,” says Keping. The company claims particular innovation in addressing common defect issues that plague tyre manufacturers. Keping adds, “Till now, Zenith doesn’t have local plant in India. For plants in China, we have introduced lots of error-proof solutions to cope with typical defects at customers sides, e.g. short-length, broken welding, cord formation defects and etc., which can definitely enhance customer satisfaction in India.”

One specific innovation highlighted by the quality team is particularly relevant to Indian manufacturing conditions. “Especially for tip-rise issue, Zenith is the first steel cord manufacturer world-wide to realise non-manual testing of residual torsion of TC spool, which can improve the accuracy and reliability of torsion testing results and significantly reduce the risk of tip-rise,” says Keping. This focus on tip-rise issues appears strategically targeted as Zhu confirms. “Tip-rise is a concern for customers right from trial stage. Professional local technical presence can clear the concern with immediate post-sales follow up and communication,” he says.  

R&D CAPABILITIES: ADDRESSING INDIA’S UNIQUE REQUIREMENTS

Zenith’s research and development strategy for India focuses on developing products that address specific challenges in the Indian market, particularly the need for tyres that can withstand heavy loads, variable road conditions and cost pressures.

Dr Wang Aiping , Head of R&D at Zenith, outlines the company’s approach: “Our approach is to develop higher strength steel cord such as ST/UT and new steel cord with better fatigue performance. We will also develop customised steel cord with certain requirements like better rubber penetration and provide advanced test service such as aged adhesion, fatigue, rubber penetration etc.”

The company appears to be investing significantly in its research and development capabilities for the Indian market with Dr Aiping indicating that at least three percent of sales income will be allocated to R&D expenditures focused on Indian operations, depending on the progress.

This research and development strategy emphasises both performance and cost considerations, reflecting an understanding of the unique price-performance demands of the Indian market. “We will focus more on both steel cord strength and fatigue performance with tyre overload condition. We will also acquire experienced senior steel cord application expertise,” Dr Aiping notes when describing how Zenith’s research and development approach differs from competitors in addressing Indian market needs.

The integration of sustainability into product development also appears to be a key differentiator for Zenith’s research and development strategy. The company is developing a carbon emission management platform tailored for Indian industries to help monitor, report and reduce emissions, supporting compliance with national ESG and carbon credit regulations. “Our research and development efforts are focused on higher strength steel cord development including ultra-tensile (UT) and mega-tensile (MT) variants, which reduce material usage and enhance fuel efficiency for automotive applications,” notes Dr Aiping.

Zenith is also introducing steel cords manufactured from high scrap ratio wire rods (≥60%), promoting circular manufacturing and reducing the carbon footprint in line with India’s green steel and recycling policies.

It is evident that tyre manufacturers globally are increasingly focused on sustainability metrics, driven by both regulatory requirements and market demand for reduced environmental impact. Zenith’s emphasis on carbon footprint measurement and recycled content appears designed to address this emerging requirement in the Indian market.

THE INTELLIGENT FACTORY

Zenith’s manufacturing capabilities represent a central pillar of its value proposition to Indian customers. The company has invested heavily in creating what it describes as an ’Intelligent Factory’ in Huai’an, featuring advanced robotics, automated material handling systems and advanced process controls.

Chakravarthy, who has extensive experience in the steel cord industry, makes a bold claim about these facilities stating, “I have spent nearly 2.5 decades in the steel cord business and I have not seen a plant as modern, efficient and sophisticated in the steel cord business like the Zenith plant in Huai’an.”

This manufacturing sophistication appears designed to address two critical requirements for the Indian market, namely consistent quality and cost competitiveness. The automated systems promise reduced variability, while scale and efficiency aim to deliver competitive pricing despite the logistical challenges of serving India from China.

A distinctive feature of Zenith’s manufacturing approach is its emphasis on traceability and carbon emissions management. The company has developed what it calls an ‘Integrated Carbon Emission Management System’ that provides product carbon footprint data at the SKU level with third-party verification. This system allows Zenith to provide tyre manufacturers with detailed emissions data for their supply chain reporting – an increasingly important consideration for global tyre companies and their automotive customers.

“Zenith invested much more in automation and digitalisation than any other competitors. With these technologies in place, we can definitely create extra value for our customers. One example here is the product traceability, and we are the only one in the industry who is able to realise full process information traceability, from the wire rod to the finished goods,” notes Rongsheng when discussing important technology transfers to Indian operations.

Industry experts observe that manufacturing scale is increasingly important in the capital-intensive steel cord industry, where economies of scale drive cost competitiveness. Zenith’s ambitious capacity expansion plans, which will see it reach 1.6 million tonnes of annual production capacity across multiple plants, position the company as the largest global producers of steel cord and bead wire.

CHALLENGE OF COST COMPETITIVENESS

Despite its technological and quality advantages, Zenith faces significant challenges in achieving the cost competitiveness demanded by Indian tyre manufacturers, who operate in one of the world’s most price-sensitive markets.

Chakravarthy is forthright about this challenge. He says, “A challenge of local steel cord being cost competitive with international options is a matter of concern to the tyre industry. Also, the world of technology is rapidly evolving, and we must acknowledge that in this industry the Chinese players have made significant strides and therefore offer an equally superior infrastructure and sustainable solutions, but scale of economy will be a challenge for time to come.”

Indian tyre customers have particularly demanding requirements as Chakravarthy explains. “Indian tyre makers have a unique challenge to make the best tyre that is abuse proof, high performing, absolutely reliable, sustainable, safe, giving the best fuel efficiency and longest tyre life at the lowest cost. It might sound ridiculous, but this is reality, and Indian tyre makers have constantly risen to this challenge and developed the radial tyre market this way,” he says.

Meeting these challenging requirements while maintaining competitive pricing is the central challenge for Zenith’s India strategy. Chakravarthy emphasises that Indian customers expect steel cord partners to have a focus on innovation, consistent quality (low variations), intervention-free processability, traceability of carbon emissions, recycled content in steel cord without compromising quality and above all cost competitiveness.

BUILDING LOCAL PRESENCE

Recognising the importance of local presence, Zenith is planning to establish a technical and commercial team in India in the second half of 2025. “A professional local team with senior experts from industry will be built in H2 2025,” according to Zhu.

In the meantime, the company is leveraging its regional presence with Zhu noting that Zenith’s customer service representatives in SEA countries can back up Indian market whenever required.

This gradual approach to building local presence appears designed to match resources with market development progress. Chakravarthy acknowledges that it is only three months that he is associated with Zenith and the focus is on introducing the company, having tyre customers visit and audit the facility as they conduct approvals. “Our talent acquisition and development will be based on the various stages of growth as mentioned earlier and we will not settle for anything less than the best,” he says.

The company’s commitment to local presence seems rooted in an understanding of the Indian market’s preference for local technical support and service responsiveness. “Think global and act local is the way to go,” says Rongsheng. “We understand that India is a very demanding market; we will for sure deliver our products with the best quality, in cooperation with Sri and his team, who is by far the best local partner we could have in this region. As time goes by, we will build up local warehouses in order to foster delivery flexibilities to our customers,” he adds.

A STRATEGIC DIFFERENTIATOR

A distinctive feature of Zenith’s market approach is its design integration on sustainability and carbon emissions. The company transports its wire rod by water ways, reducing its C02 emissions per tonne per km significantly vs road transport. The use of energy efficient motors, solar power on site, optimal plant   layout maximising efficiency with Co2 capture at every stage is what sets the Huai’an plant apart. This, coupled with the deployment of sophisticated systems for tracking and reporting carbon emissions throughout the production process, offers tyre manufacturers detailed data for their sustainability reporting.

The company’s investments in sustainability technologies reflect growing market demand for environmentally responsible manufacturing practices. One of the biggest challenges for carbon emission management is to understand carbon emission in Scope 3. The carbon emission management system of Zenith integrates all product carbon footprint data throughout the supply chain, from raw material sourcing to product distribution.

GLOBAL COMPETITION AND MARKET POSITIONING

Zenith’s push into India comes amid broader global trends of supply chain diversification and regionalisation in the steel and automotive supply chains. Global trade tensions, shipping disruptions and sustainability considerations are all driving tyre manufacturers to seek more resilient and localised supply networks.

This context creates both opportunity and urgency for Zenith’s India strategy. On one hand, tyre manufacturers are actively seeking supply alternatives to reduce concentration risk. On the other hand, competitors are also pursuing similar strategies, creating a race to establish market position.

The company’s aggressive capacity expansion in China – investing in projects totalling 1.6 million tonnes of annual production, a full-fledged R&D facility, integrated steel manufacturing, access to harbour, talented work force – positions it to serve not only India but global markets too. This scale could provide advantages in new technology development, raw material sourcing and manufacturing efficiency that benefit the Indian business.

However, relying exclusively on exports from China also creates vulnerability, particularly if trade tensions or shipping constraints resurface. This reality likely explains Zenith’s interest in eventually establishing non-China production capacities, potentially including India itself.

Industry experts note that India’s government has been actively encouraging greater localisation of manufacturing across various industries including automotive components. This policy direction could create both incentives and pressures for Zenith to accelerate its plans for local production capabilities in India.

CUSTOMER ENGAGEMENT

Zenith’s approach to the Indian market emphasises close technical collaboration with tyre manufacturers, recognising the unique requirements of the Indian market and the value of co-development in addressing these needs.

“We organise technical forum with customers’ research and development team to listen to their concerns and feedback. For some critical issues, management team will assign corresponding resource to cope with,” the company’s Quality Manager notes when describing collaboration with research and development to improve product quality.

This collaborative approach appears designed to address the specific technical challenges faced by Indian tyre manufacturers, who must design products for uniquely challenging operating conditions. “Indian customers value reliability, cost-effectiveness and localised post-sales support. Zenith prioritises trust-building through transparent communication, joint problem-solving and tailor-made new product development,” notes Zhu.

“The company’s research and development team is also focused on supporting this collaborative approach with plans to have regular technical meeting and build-up co-operation project with certain customer,” according to Dr Aiping.

GROWTH PROJECTIONS

Zenith’s current production capacity and expansion plans are substantial, reflecting the company’s global ambitions. According to the company, Zenith expects to reach around 500,000 tonnes of sales in 2025 and over 800,000 tonnes in 2026. This rapid scaling of production capacity underscores the company’s global ambitions.

The company’s manufacturing facilities are organised into multiple plants, each focusing on specific product lines:

• Plant 1: 240,000 tonnes/year of steel cord (full operation)
• Plant 2: 300,000 tonnes/year of bead wire (3/6 lines installed)
• Plant 7: 280,000 tonnes/year of steel cord (800 tonnes/day)
• Plant 6: 280,000 tonnes/year of steel cord (construction started in April 2024)
• Plants 3 and 5: 500,000 tonnes/year of steel cord (to be launched in 2025/2026)

This capacity expansion is backed by substantial investment with the company noting that it will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow. ”Zenith’s state-of-the-art production facilities and its very experienced team guarantee high product quality as well as stability. Because of its large production  capacity, Zenith has a strong economy of scale and therefore is able to offer very competitive prices to Indian customers. Zenith will invest over USD 140 million on its research and development centre to make sure it will remain a winner tomorrow,” adds Rongsheng.

AMBITIONS AND REALISM

Zenith’s ambitions for the Indian market are clearly substantial, but so are the challenges. The company faces competition not only from the established local player but also from other global steel cord manufacturers eyeing India’s growth potential.

Chakravarthy sees the opportunity for Zenith to become a very strong alternative that allows India to offer higher value to the automotive OEMs and replacement market. He suggests that what Zenith could offer the Indian tyre industry is an extremely cost-competitive source that is able to provide the most modern technology, efficiency, highest levels of quality, deep innovation and enough volumes to support the growth of Indian market requirements in the years to come.

However, realising this vision requires executing across multiple dimensions simultaneously including building customer relationships, establishing local presence, ensuring cost competitiveness and eventually pursuing local manufacturing partnerships.

The company’s leadership appears clear-eyed about both the opportunities and challenges. “India can only become more important for Zenith in the future. It’s a growing market and the demand is going up every year. You cannot find this promising trend in those mature or developed markets,” says Rongsheng.

For the Indian market specifically, success will ultimately be measured by commercial performance and customer acceptance. While several Indian tyre manufacturers are already engaging with Zenith for approvals and trials, converting these initial engagements into substantial, regular supply relationships represents the true test of the company’s strategy.

As Chakravarthy puts it, “Being a steel cord player, where approvals themselves take a couple of years or more, requires a long-term vision and commitment. The level of commitment can simply be measured by how much investment a company is making for catering to the future needs of the industry. Zenith’s investments are not only towards securing volume needs of the Indian tyre industry but also fulfilling evolving technological, quality, sustainable and economic viability needs. “

A NEW FORCE

As Zenith advances its India strategy, the company appears poised to become a significant force in the country’s steel cord market. Its combination of manufacturing scale, technical capabilities and strategic focus on Indian requirements positions it well to challenge existing suppliers and support the continued growth of India’s tyre industry.

 “It is not an easy road, and the only way to succeed is to collaborate with the best in the industry who can address all these aspects, not just some of these aspects,” Chakravarthy observes, capturing both the opportunity and challenge that lies ahead for Zenith in India.

For Indian customers, Zenith’s entry marks the first ever steel cord supplier who is backward integrated with steelmaking offering complete control on quality and scale and capacity and thereby supports a unique value proposition built on the principles of quality, sustainability, innovation, service and cost competitiveness. For Zenith, success in India represents not just a commercial opportunity but a strategic imperative as the company seeks to transform from a China-focused producer to a truly global steel cord supplier.

As the company enters its next phase of market development in India, all eyes will be on its ability to deliver on the twin promises of quality and cost competitiveness that define success in this demanding market. With its ambitious capacity expansion plans, investments in advanced manufacturing technologies and growing engagement with Indian customers, Zenith appears determined to establish itself as a long-term player in India’s evolving steel cord landscape.

“India presents a growth market in the long term with a strong case for doubling its steel cord demand within the decade. Unlike some global manufacturing platforms that are largely export dependent, India has a healthy domestic market with a continued and healthy growth projection both for domestic and exports,” Chakravarthy noted, summarising the strategic rationale behind Zenith’s India push.

In the global context of supply chain diversification and growing emphasis on sustainability, Zenith’s investment in India reflects broader trends reshaping the steel and automotive supply chains. The company’s success or failure in India will serve as a case study in how Chinese manufacturers can navigate the complex process of expanding beyond their home market into challenging but potentially rewarding growth markets.

As one industry analyst put it, “The entry of players like Zenith brings much-needed competition to India’s steel cord market. If they can deliver on their promises of quality, cost and eventually local manufacturing, Indian tyre makers stand to benefit significantly from an expanded and more competitive supplier base.”

The months and years ahead will reveal whether this confidence is justified and whether Zenith can translate its ambitious plans into market reality in one of the world’s most challenging and promising tyre markets.

THE PATH FORWARD: STRATEGIC IMPERATIVES AND CHALLENGES

As Zenith advances its India strategy, several key imperatives and challenges emerge from the company’s approach:

1. Balancing global scale with local adaptation: Zenith must leverage its global scale while adapting to the specific requirements of the Indian market. “Think global and act local’ is the way to go,” as Rongsheng puts it.

2. Establishing local presence: Building a local technical and commercial team will be crucial for addressing Indian customers’ expectations for responsive service and support. “Professional local team with senior experts from industry will be built in 2H’2025,” according to Zhu.

3. Ensuring cost competitiveness: Despite technological advantages, Zenith must deliver competitive pricing to succeed in India’s price-sensitive market. “The Indian consumers are a price and value sensitive market, and therefore it is not sufficient to just have a local footprint without addressing the key questions of cost competitiveness, sustainability and technology sufficiently,” Chakravarthy notes.

4. Developing market-specific products: India’s unique road conditions and vehicle usage patterns require specialised steel cord solutions. “To consider both steel cord strength and fatigue performance with tyre overload condition,” Dr Aiping emphasises.

5. Building long-term partnerships: Success in India will require strong relationships with tyre manufacturers and potentially local manufacturing partners. “In time, this dialogue will take shape with the right partner and India will get a very strong alternative that allows it to offer higher value to the automotive OEMs and replacement market,” Chakravarthy suggests.

Radar Tires has appointed industry veteran Paul Stahoviak as its new Territory Sales Manager for North America. In this strategic role, Stahoviak will spearhead the expansion of Radar's Midwest operations while developing the company's premium Radar Elite Dealer (RED) network. The automotive expert brings four decades of experience working with leading manufacturers and retailers to this position.

Radar Tires has achieved remarkable growth in recent years through continuous product innovation and progressive business strategies. Since entering the US market in 2006, the company has also built a reputation for corporate social responsibility, contributing millions to meaningful initiatives such as breast cancer awareness. By combining high-performance tyres with a commitment to purpose-driven business practices, Radar continues to strengthen its position in the competitive tyre industry.

Rob Montasser, Vice President of Radar Tire, North America, said, “Paul’s deep knowledge of the industry, combined with his relentless energy and positive attitude, makes him a great addition to the Radar team. His longstanding relationships and reputation for excellence will help us continue building strong partnerships and expanding our footprint across the Midwest.”

Stahoviak said, “I’m excited to join Radar Tires and help drive the growth of this great brand. I’m passionate about building lasting relationships with our partners and helping our brand succeed in the marketplace.”

As vehicle emissions regulations evolve, the lack of global uniformity is becoming a growing concern for OEMs and tyre manufacturers. With disparate standards across regions, companies are forced to navigate a complex regulatory maze, straining research and development and production resources. The shift towards electric mobility coupled with heightened focus on non-tailpipe emissions, such as tyre and brake abrasion, further amplifies the need for harmonised frameworks. Industry leaders including Audi’s Sebastian Gramstat argue that collaboration across borders and sectors is essential not just for compliance but for meaningful progress in sustainability and innovation.

Tyre regulations are rules and standards established to ensure that tyres used on vehicles meet safety, environmental and performance criteria. The impetus on new and updated regulations is also growing across regions to reduce pollution brought about by tyre abrasion, rolling noise etc.

The ECE R30, ECE R117, EU Tyre Labelling Regulation (2020/740), which is implemented within the European countries, or JIS Standards of Japan, CCC Certification of China, AIS 142 and BIS Certification of India and FMVSS, DOT Code and UTQG of the United States are different region-specific regulations aiming for a same outcome.

But the vastness of these regulations poses as a challenge for automobile OEMs and tyre makers alike as a lot of energy and resources have to be diverted within production and research and development lines to meet these standards.

Furthermore, the advancement of electric mobility and changes in vehicle dynamics are also slated to impose new regulations worldwide. Hence, the need for a uniform regulation has become a precondition.

Speaking to Tyre Trends on the need for uniform regulations, Dr Sebastian Gramstat, Senior Expert Development Brake System, Audi AG, averred, “Our company delivers products globally and having a unified standard is far more efficient than navigating a patchwork of regional requirements and regulations. Harmonisation brings clear operational and strategic advantages. That’s why we actively support and participate in standardisation and harmonisation working groups.”

“The European Union is involved through bodies such as the Joint Research Centre (JRC), but we also recognise the unique demands of other markets, particularly the US, where customer expectations can diverge significantly. These are often beyond the immediate scope of EU regulators. Our role is to help connect these dots by facilitating dialogue, sharing insights and contributing to building a global standard that benefits the entire ecosystem. We believe this collaborative approach is not only useful but essential to moving the industry forward,” he added.

The need for uniformity is exacerbated as OEMs and tyre makers continuously amp up research and development efforts to curb noise and air pollution from tyres. “Noise pollution, particulate matter or overall tyre wear remains a challenge. And the first step to tackle it is collaboration to develop a standardised method for accurately measuring tyre abrasion and wear. We are also working on such collaborations. Without reliable quantification, you can’t evaluate whether any mitigation measure is actually effective,” said Dr Gramstat.

He added, “This method needs to be robust, applicable across a wide range of real-world scenarios and globally accepted. That’s why we’re collaborating not only with industry partners and academia but also with regulatory authorities. This effort is taking place under the auspices of the United Nations and involves close coordination with national bodies, ministries and the European Commission. The goal is to ensure that the methodology we develop isn’t just technically sound but also internationally harmonised with Euro 7 regulations and integrated into UN regulations so it can be implemented consistently across Europe, North America, Asia and beyond.”

THE EURO 7

Tyres are a crucial component of overall vehicle design to the extent that many OEMs have dedicated in-house departments focused solely on tyre development, including Audi AG. While tyres aren’t developed in isolation, the process involves close collaboration with manufacturers to meet specific, often bespoke, requirements. These custom specifications ensure the tyre aligns with the car’s performance targets and regulatory demands including type approval.

When selecting a tyre, OEMs weigh multiple parameters; safety, performance and comfort are chief among them. But increasingly, attention is also given to sustainability and economy. Factors like tyre abrasion, longevity and fuel efficiency are becoming just as critical, particularly as regulatory frameworks begin to formalise such requirements.

Ultimately, the process involves balancing trade-offs. As Dr Gramstat put it, no tyre can deliver 100 percent on every metric. The goal is to find the best possible compromise – one that supports a premium product and meets both regulatory standards and consumer expectations.

Euro 7 is the upcoming EU vehicle emissions regulation set to take effect from 2025 for cars and vans and 2027 for trucks and buses. It introduces stricter limits on nitrogen oxides, carbon monoxide and particulate emissions, covering both combustion and electric vehicles.

It also regulates brake and tyre emissions and requires compliance under real driving conditions. It aims to cut air pollution, support the European Green Deal and standardise emission rules across vehicle types.

Alluding to whether the industry is ready to adopt the regulation, Dr Gramstat noted, “The industry is well-positioned for adoption. The European Tyre and Rim Technical Organisation (ETRTO) plays a central role in coordinating the efforts of tyre manufacturers across the continent, including legacy European brands and Asian manufacturers, with research and development and production facilities in Europe. Beyond Europe, we’re seeing strong international engagement. U.S. Tire Manufacturers Association (USTMA) is actively involved, and on the global standards side, ISO is working in parallel to develop the necessary technical frameworks. Stakeholders from China are also contributing significantly. This is no longer just a regional conversation but a truly global initiative. Experts from continents are collaborating to align regulatory, technical and industrial priorities, ensuring the tyre industry is prepared to meet the evolving demands of Euro 7 and beyond.”

Further outlining the impact of the regulation, he said, “Tyre manufacturers have largely operated under internal benchmarks for metrics like mileage and abrasion till date. Euro 7 represents a shift towards formal regulation, creating a harmonised framework that applies to the entire industry. This will undoubtedly influence existing design priorities. There’s a complex interplay between various tyre performance criteria such as wet grip, rolling resistance, noise and abrasion. Regulatory limits on one can impact the others, so the challenge will be to minimise trade-offs while maintaining overall performance. At this stage, it’s difficult to offer a one-size-fits-all answer. The impact will vary depending on vehicle type.”

REPLACEMENTS

Premium automobile OEMs like Audi have been using tyres from premium European tyre makers for decades. But as the status of Asian manufacturers changes, there might be room for such companies within the supply chain of premium car makers.

“At the end of the day, it’s not about the brand label but meeting the technical and performance specifications we define. Whether a supplier operates in the premium or high-volume segment, what matters is its ability to fulfil our requirements. If a manufacturer can meet those benchmarks and is willing to collaborate and co-develop with us, then they’re absolutely welcome. Competition in the supplier landscape is a positive force. It drives innovation, efficiency and ultimately better outcomes for the end consumer. We believe valuable ideas can come from any corner of the market and we’re open to partners who share our commitment to quality, performance and progress,” said Dr Gramstat.

He also acknowledged that there is a growing trend within the company to include tyres made from renewable and recycled materials. “The move towards sustainable materials is more than a marketing exercise. It’s becoming embedded in product development strategies across the industry. We’re already seeing recycled content being integrated into certain product lines, and the ambition from suppliers to scale this up is very real. What’s encouraging is that this isn’t limited to one-off pilot products. There’s genuine momentum towards making sustainability a core part of tyre manufacturing. For us, this aligns with our broader sustainability goals, and we see it as a critical area of innovation moving forward,” said Dr Gramstat.

However, the executive emphasised the importance of maintaining a balance too. According to him, sustainability is just one of several key factors in vehicle design while others include safety, comfort, performance and cost. He stressed that no single aspect, including sustainability, could come at the expense of another.

To meet these multi-dimensional goals, additional research and development efforts are required to create a product that meets safety and performance standards while also addressing environmental concerns. Economy remains a consideration as well. Internal research conducted under a European-funded project suggested that customers are, in fact, willing to pay a premium for more sustainable products but only up to a point. Price sensitivity remains a limiting factor.

Turning towards next-generation tyre concepts such as airless tyres, Dr Gramstat noted that innovative ideas like this were once viewed as distant possibilities but are now gaining traction. He cited the LEON-TI project from four years ago, in which airless tyre prototypes were first explored. Since then, similar concepts have been tested by various companies, including in pilot programmes for commercial delivery fleets in Asia.

Although these innovations show promise, particularly for reducing noise emissions and improving durability, they are still in advanced development stages.

THE FUTURE IS CHANGING

As the automotive industry moves towards electrification, the conversation around ‘zero-emission’ vehicles is evolving. Dr Gramstat acknowledged that while electric vehicles eliminate tailpipe emissions, other sources of pollution such as brake and tyre abrasion remain unaddressed in regulatory terms.

Currently, there are no standardised methods for measuring particulate emissions from these sources, but the industry is actively working on it. According to the executive, regulatory bodies and stakeholders are collaborating to develop measurement frameworks. Once these standards are in place, automakers will be able to quantify non-tailpipe emissions and provide a more accurate assessment of a vehicle’s overall environmental footprint.

The executive stressed that collaboration across the value chain is essential, especially between vehicle manufacturers and tyre companies. Such partnerships already exist within serial and advanced development efforts, including participation in the United Nations’ GRBP task force, which brings together manufacturers, tyre associations and regulators to advance tyre abrasion standards.

Weight reduction remains another key challenge. Automakers continue to look for ways to decrease vehicle mass but face constraints. Safety regulations now require more sensors and electronic control units (ECUs), which cumulatively increase vehicle weight. Although each component adds little individually, the growing number of sensors and accompanying wiring has a significant cumulative impact.

As for tyre development, the question of smart tyre was also addressed. While such technology offers valuable insights during research and development phases, Dr Gramstat expressed scepticism about its near-term viability for mass-market vehicles.

In a major step toward sustainable waste management, RPM Automotive Group has partnered with Fornnax to enhance its tyre recycling capabilities in Australia.

As part of the initiative, RPM has integrated Fornnax’s high-capacity SR-200 HD primary shredder into its operations, significantly improving recycling efficiency and material quality.

The collaboration supports RPM’s broader environmental goals and positions the company to process over 180 tonnes of used tyres weekly, with plans to scale beyond 300 tonnes. The move is expected to help RPM capture up to 5 percent of Australia’s national market share in tyre recycling.

Jignesh Kundaria, Director and CEO, Fornnax, said, "At Fornnax, we understand the urgency of addressing end-of-life tyre waste, not just in Australia but globally. The SR-200 HD Primary Shredder is designed for exceptional efficiency, enabling RPM to process vast quantities of discarded tyres while maintaining optimal operational performance. This collaboration showcases our dedication to providing our clients with the robust, high-performance solutions they need to excel in the circular economy."

RPM’s 3,500 sqmt facility not only boosts recycling output but also transforms waste tyres into rubber-based materials for road projects and industrial fuel. Leveraging its distribution network, the company aims to recycle up to 54,000 tonnes of tyres over five years.

The initiative aligns with Australia’s 2021 ban on tyre waste exports and underscores the urgent need for local recycling solutions.