A proposed bill in Brazil’s Chamber of Deputies has ignited fierce opposition from the country’s tyre retreading sector, which sees the legislation as an ill-conceived and uninformed attack on an industry that plays a crucial role in the economy and sustainability efforts. The bill seeks to ban the use of retread tyres on buses and trucks operating on state and federal highways, a move that the industry argues is both impractical and detrimental.

Brazil is the world’s second-largest retread market, following only the United States. This achievement has been attributed to the reliability and quality of work carried out by retreaders, which has earned the market’s trust.

In September 2024, a draft bill was introduced in Brazil’s Chamber of Deputies to exercise a ban on the use of retread tyres in buses and trucks operating on state and federal highways. The Brazilian Association of Tyre Retreading (ABR) lashed out at the proposed draft, labelling it as ‘misguided and uninformed’.

Subsequently, ABR President and Federal Senator of Mato Grosso, Margareth Buzetti, told Tyre Trends, “The proposed bill focuses on retread tyres rather than broader factors such as overloading, poor road conditions or inadequate maintenance practices due to sheer misinformation on the part of the person who proposed the project. It is a simplistic and populist proposal that promises to increase road safety by fighting the wrong enemy. Tyres retreaded in Brazil undergo extremely rigorous inspections to ensure that they reach the transport companies safely and reliably.”

“We, as retreaders, meet Inmetro standards that define the technical requirements for tyre retreading, following the standards of excellence practiced in other countries. We are talking about large companies that have strict quality standards. We are in no way inferior to new tyres in terms of safety,” she added.

According to Buzetti, no reputable company would compromise on tyre safety as doing so could lead to financial losses from accidents and endanger lives. She also pointed out that the sector’s ability to generate approximately 300,000 direct and indirect jobs is a testament to the high quality of retreaded products.

Commenting on how the proposed bill might influence public perception about the sustainable practice, she noted, “The way it was proposed is terrible because it gives people the impression that retread tyres in Brazil are of poor quality and are responsible for road accidents. This is absurd misinformation. However, I do not see this issue as something that concerns the general population. Transport companies, which are the largest users of retread tyres, are aware of the reality.”

“Entities linked to both the reform and transportation sectors sent dozens of letters to the Chamber of Deputies against the proposed bill. We will continue this pressure in 2025,” she added.

The association plans to seek out the rapporteur and the author of the bill so that they understand the seriousness of the work carried out by the sector. “The right thing to do would be for the congressman to withdraw the bill he presented and file another one that focuses on combating illegally-made reforms or the poor-quality tyres that are imported from Asia without any control whatsoever. Then they will have our support. Otherwise, we will seek out partner congressmen to wage a real battle within the Chamber against the advancement of this absurd proposal,” contended Buzetti.

IMPLICATIONS OF THE BILL

Buzetti noted that if the proposed bill was implemented, then the implications would be ‘catastrophic’. “If the bill were to become law, the long-term impact on Brazil’s tyre industry would be devastating. Companies are already struggling with the rising cost of raw materials due to increase in the Dollar-Brazilian Real exchange rates. Banning tyre retreading would further cripple the sector, leading to significant financial and operational challenges,” she said.

Currently, tyre retreading saves Brazil BRL 7 billion in transportation costs. If the proposed bill becomes law, which the ABR believes is unlikely and will actively oppose, it would effectively force transportation companies to buy only new tyres overnight, causing a massive rise in costs.

Alluding to the potential impact of this legislation on Brazil’s carbon neutrality and sustainability goals, Buzetti emphasised, “The sector was recently recognised by the Ministry of the Environment as an important asset in the circular economy. This was a milestone that we achieved at great cost, and the government is finally beginning to see our importance for environmental sustainability. I believe that 2025 will be the year in which we will be able to make even more progress on this issue. We cannot ignore the importance for the environment of a sector that retreads 14 million tyres per year.”

While the association can furnish data demonstrating the safety and reliability of Inmerto-certified retread tyres to battle the proposed bill, Buzetti, attacking the project makers, said, “Can the deputy who created the project present data that guarantees that the lack of safety on the roads is caused by retread tyres?”

Commenting on the bill’s impact on small and micro enterprises if implemented, Buzetti said, “Tyre retreading supports 300,000 jobs in Brazil today. It is a well-established market. Banning retreading would be like taking food off the table for thousands of Brazilians who rely on this sector.”

ALTERNATIVE ROUTE

According to Buzetti, the legislative year ended with this bill being presented to the Chamber of Deputies’ Transport and Roads Committee and it did not receive any amendments within the statutory deadline. Now, in February, discussions on the proposal can begin and she highly doubts that it will move forward. As a senator, she will not participate in the votes in the Chamber but will personally go to the committee to talk to all the deputies to demonstrate the quality of tyre retreading in Brazil.

Speaking on the steps that the government should take to address any lingering safety concerns and prevent future proposals like this, in case the bill was withdrawn, Buzetti said, “Inspection of poor-quality tyres entering the country and incentives for tyre retreaders to continue operating within the law is a necessary step. I presented a bill that is currently pending in the Chamber of Deputies that provides tax exemption for tyre retreading companies, as a way of attracting them to formality.”

She also noted, “Instead of banning retread tyres, we could have greater oversight of imported tyres that enter Brazil illegally. We are talking about tyres that are so bad that they don’t even need to be refurbished. These should be a priority for parliamentarians. And, of course, improving road conditions and oversight of the rules that must be followed by transport companies (such as not exceeding the maximum load) are also important steps to increase road safety.”

Nokian Tyres has unveiled a groundbreaking innovation in winter driving: the world’s first studded winter tyre capable of automatically adapting to temperature shifts. Named the Hakkapeliitta 01, this new product marks a significant milestone for the company, which originally invented the winter tyre in 1934 and introduced the legendary Hakkapeliitta line 90 years ago in 1936. This latest evolution fulfils a longstanding ambition to create a studded tyre that can respond dynamically to changing road conditions.

At the heart of this development is the patented Double Action Stud Technology, which enables what the company calls On-Demand Grip. This system allows the studs to automatically toggle between two modes depending on the temperature. When activated, the studs provide maximum safety and powerful traction on icy and snow-covered surfaces, offering drivers complete confidence in severe winter weather. Conversely, when the system deactivates, the tyre delivers precise handling on bare, dry roads while minimising road wear. This dual functionality ensures a stable and accurate driving experience, effectively addressing the primary concerns of studded tyre users: noise and surface wear.

The Hakkapeliitta 01 is engineered for passenger cars, crossovers and SUVs and carries both the Three-Peak Mountain Snowflake and Ice Grip certifications, underscoring its severe winter weather credentials. The technology represents the fruition of a visionary concept first proposed by the company in 2014. Since then, extensive global research and development have taken place, involving thousands of prototypes tested in diverse environments, from indoor laboratories to the company’s Arctic test centre in Finland and its facility in Spain.

The result is a tyre that delivers measurable improvements across several key areas. Compared to its predecessor, it reduces road wear by up to 30 percent. Safety has also been enhanced, with ice grip improved by up to 10 percent and wet grip by up to five percent. Furthermore, noise levels have been reduced by as much as one decibel, contributing to a quieter and more comfortable journey. In line with a commitment to sustainability, the tyre’s tread compound incorporates renewable materials, including natural rubber, bio resin and bio-based oils derived from sources like pine resin and canola oil.

The new product range will be available to consumers in the autumn of 2026, with primary markets in the Nordic countries and North America. Production will take place at the company’s factory in Nokia, Finland. A conference call is scheduled for today (2 March 2026) at 4:15 p.m. EET, during which company leadership and winter tyre specialists will present the new tyre and answer questions. A recording of the event will be accessible online for the following twelve months.

Paolo Pompei, President and CEO, Nokian Tyres, said, “The new Nokian Tyres Hakkapeliitta 01 represents one of our company’s biggest innovations since we introduced the first winter tyre more than 90 years ago. This new winter tyre achieves what was previously thought impossible: a studded tyre that responds to temperature changes to deliver ultimate safety while protecting the road.”

Mikko Liukkula, Nokian Tyres Development Manager who oversaw the tyre’s years-long evolution from concept to reality, said, “With the new Nokian Tyres Hakkapeliitta 01, we set out to rethink what a studded winter tyre can be. We didn’t want to compromise between superior ice grip and low road wear, which is a common trade-off in winter tyre development. Instead of a compromise, we developed a solution where grip adjusts automatically to the temperature, delivering maximum safety when it’s needed and more controlled, gentler road contact when it’s not. This helps drivers account for winter weather that is less predictable than ever, while navigating new regulations related to tyres’ impact on the road.”

As the global tyre industry grapples with volatility and intensifying competition, Global Rubber Industries ( GRI) is sharpening its focus on specialisation and sustainability-led innovation. By prioritising value over volume, the company is redefining how growth can be achieved in complex off-highway and agricultural segments.

The global tyre industry is navigating one of its most complex phases in decades. Slowing vehicle registrations, volatile commodity prices, geopolitical uncertainty and intensifying competition are forcing manufacturers to rethink where and how they compete.

For Global Rubber Industries (GRI), the Sri Lanka–based specialist tyre manufacturer, these challenges are not signals to retreat but catalysts to sharpen focus, deepen innovation and redefine value.

In an exclusive interaction with Tyre Trends, Barry Guildford, Global Commercial Director, GRI, said, “The last couple of years have been quite challenging. Particularly if you look at the OE sector, there’s been a real downturn in the number of new vehicles being purchased. Registrations are lower, farmers’ revenues are under pressure and cash flow is a problem.”

Yet, within this disruption, GRI sees opportunity – not in scale-driven volume plays but in specialised segments, sustainability-led innovation and solutions that lower total cost of ownership for customers.

A TOUGH CYCLE BUT CLEAR SHIFTS IN MARKET DIRECTION

Guildford describes the past 12 to 18 months as a period marked by belt-tightening across key end-user industries, particularly agriculture.

“When you see commodity markets for certain crops, it’s impacting revenues from the farmers. There are fewer subsidies available from regional authorities, so generally speaking, it’s been a tough 12 to 18 months,” he explained.

However, beneath the surface, the aftermarket is undergoing important structural shifts. Automation is accelerating across agriculture, while electrification is reshaping material handling.

“At Agritechnica, we saw a lot of automated driving vehicles being launched in the agricultural space,” Guildford noted. “There’s also a trend towards more VF (Very High Flexion) tyres, which is a positive trend for the industry.”

On the industrial side, electrification is no longer niche. “In material handling, especially forklifts, electrification is definitely playing a role. Traditional forklift manufacturers like Linde or Hyster are being challenged by new players from Asia offering electric solutions,” he said.

For tyre makers, these trends demand more than incremental upgrades. “The status quo in the automotive industry is completely shifting, Earlier, Chinese brands had limited penetration in global markets. Now you see many more players entering, especially in developed markets,” Guildford explained.

While this increases choice for customers, it also intensifies competition. “For us as a manufacturer, these are competitors. So it’s even more important that we focus on innovation and solutions,” he said.

SPECIALISATION OVER SCALE: LEARNING FROM INDUSTRY CONSOLIDATION

Recent years have also seen significant consolidation across the global tyre industry, with legacy players divesting businesses to concentrate on core segments. Guildford views this as part of a broader cyclical pattern.

“Many changes in the industry happen in cycles. If you look back 10 or 15 years, premium manufacturers invested heavily in the OHT space. Now some are divesting again,” he said.

In his assessment, complexity has become a decisive factor. “The OHT sector is extremely complex. There are solid tyres, pneumatic tyres, radial tyres and an unbelievable number of combinations in agriculture between tyres and rims,” he said.

This complexity, he believes, has worked in favour of focused specialists. “If you look at the premium sector’s performance in OHT, it’s clear they are losing ground to tier-two players and companies like ours,” he averred.

The reason is simple. “At the end of the day, you need to focus on where you can make money – where the value is. Large manufacturers have enormous divisions focused on PLT, UHP and truck tyres. These are high-volume, high-margin businesses,” Guildford added.

By contrast, specialist segments require deep technical expertise and sustained investment. “That’s why you’re seeing mainstream manufacturers focus more on their core channels, while specialists like GRI double down on OHT and agriculture,” he said.

For GRI, this focus is deliberate. “We are not trying to be everything to everyone. We are building leadership in the segments where innovation really matters,” Guildford said.

SUSTAINABILITY AS STRATEGY, NOT SLOGAN

Few topics have been as overused – and misunderstood – as sustainability. For Guildford, the difference lies in execution. “At first, sustainability was a buzzword. Everybody had to say they were sustainable. But now it’s being taken seriously,” he said.

At GRI, sustainability is not an add-on. “It’s in our DNA. It’s how we differentiate ourselves in a crowded market,” Guildford asserted. That commitment was recently recognised when GRI’s sustainable tyre won multiple international awards, including at ProMAT in Chicago and Automechanika Dubai. “Five or six years ago, we asked ourselves how we could create space in a crowded market. We decided to go on a sustainability journey,” he recalled.

The result was a tyre containing 93.5 percent sustainable materials, designed initially for material handling. “You never know how successful a product will be until you launch it. You design it, test it, evaluate it, place it with end users and then you get feedback,” Guildford admitted.

Winning the ProMAT award was a turning point. “That gave the company a massive boost in confidence. It showed that our R&D had developed something special,” he said.

Automechanika Dubai amplified that recognition. “Here, we are up against the world’s best manufacturers.  And yet, a small entrepreneurial company from Sri Lanka has produced the world’s best tyre,” Guildford said.

GRI won Sustainable Product of the Year and was runner-up for Innovation of the Year. “That is fantastic recognition. Not once, not twice, but three times,” said Guildford.

SELLING VALUE IN A PRICE-SENSITIVE WORLD

Despite the accolades, selling sustainable products in a cost-conscious market remains challenging.

“Sustainable tyres are not cheaper to produce. They are more expensive,” Guildford said candidly.

With higher material and process costs, GRI’s green tyre commands a premium. “You can’t bring it to market at the same price level,” he explained.

So why do customers buy it?

“Because you have to sell value. If you try to sell on price, you will always lose. There will always be someone cheaper,” Guildford replied.

The value proposition rests on performance and measurable impact. “This tyre reduces carbon emissions by 55 percent, certified by Bureau Veritas. It has 93.5 percent sustainable material, and most importantly, it performs better than a standard black tyre,” he explained.

When viewed through total cost of ownership, the equation changes. “If you compare operating costs, it’s actually the cheapest alternative. You pay more upfront, but you get it back in performance,” Guildford explained.

This mindset, he believes, marks a shift in customer behaviour. “If you always buy budget products, you never see the full benefit of premium solutions,” he said.

A FULL INNOVATION PIPELINE AND MEASURED CAPACITY EXPANSION

Looking ahead, GRI’s innovation roadmap is extensive. “We have two or three strategic roadmaps that we are working on,” Guildford revealed.

The sustainability journey is far from complete. “93.5 percent is amazing, but there is still room to go. Our R&D team is already working to push that beyond 95 percent,” he said.

In agriculture, the company is accelerating investment in advanced technologies. “At Agritechnica, we launched our steel-belted products. We will be heavily investing in steel-belted technology and VF going forward,” Guildford said.

Construction tyres are another focus area. “There are elements like L5 that we need to introduce, particularly for this (Middle East) region,” he added.

Behind the scenes, GRI is also reassessing its solid tyre portfolio and brand architecture. “The innovation pipeline is full,” Guildford explained.

Responding to the company’s production expansion plans, Guildford said that expansion will be disciplined rather than rushed.

“At the moment, we have room to grow within our existing infrastructure. We want to reach full capacity before thinking about a new plant,” he replied.

That said, growth may eventually necessitate expansion. “In a three-to-five-year timeframe, if all goes well, then yes, we may look at new facilities,” Guildford said.

As global tyre markets remain volatile, Sri Lanka’s GRI aims for clarity rather than speculative risk. By focusing on specialisation, sustainability and value creation, it is positioning itself not just to weather industry challenges but to reshape expectations within its chosen segments.

“Innovation is not optional anymore. It’s the only way forward,” Guildford concluded.

KraussMaffei Group is set to implement a leadership transition at its subsidiary, KraussMaffei Technologies, with a change at the board level. Jörg Stech, who has served as Chairman of the Board and global head of injection moulding, automation and additive manufacturing since 2023, will be departing on 31 March 2026 at his own request. He will be succeeded by Dirk Musser, the current Head of Group Transformation at the parent company, who has been appointed as the new Managing Director effective 1 April 2026. The leadership handover between Stech and Musser is already in progress, ensuring a seamless transition.

Stech’s tenure unfolded during a difficult economic period marked by financial losses and a contracting market. He responded with decisive measures aimed at margin enhancement and balance sheet improvement, which laid the groundwork for the company's long-term stability. Under his direction, the product lineup for injection moulding and automation was revitalised with the introduction of the LRXplus linear robot, the fully electric PX series and the MC7 control system, all launched in late 2025 alongside new artificial intelligence tools. He also launched a multi-year development initiative and pushed the company into new markets, such as aerospace and drone technology, by leveraging expertise in specialised processes like ColorForm. Through a focus on operational excellence, pricing discipline and capital efficiency, Stech guided the company to a significantly more resilient position compared to three years prior, despite the persistent downturn in injection moulding.

Musser brings to his new role extensive experience in transformation and finance. In his current capacity, he has already been closely involved with KraussMaffei Technologies, collaborating with its leadership to drive strategic initiatives and enhance operational performance. His qualifications include sharp analytical abilities, a strong grasp of industrial processes and a broad international perspective. An economist by training, Musser has accumulated over 20 years of leadership experience across various technology and industrial sectors. His background includes leading major transformation and turnaround projects at CRRC New Material Technologies, where he stabilised plant earnings in North America, as well as directing operational and financial restructurings during his time at Deloitte. He has also held roles with P&L responsibility, managing global supply chains and post-merger integrations at CRONIMET and has prior experience with automotive manufacturers including Daimler and Fujian Benz Automotive in China.

Alex Li, CEO, KraussMaffei Group, said, "Jörg Stech took on responsibility in a difficult situation, set clear priorities and launched decisive initiatives. The successful market launch of the LRXplus linear robot and the all-electric PX machine series, the consistent focus on profitability and the sustainable strengthening of our balance sheet are visible results of this work. We would like to express our sincere thanks to Jörg Stech for his leadership, integrity and team spirit. We value Dirk Musser as a leader who combines strategic clarity with operational excellence. In a short period of time, he has provided vital impetus for the transformation of the group and impresses with his analytical strength, decisiveness and deep understanding of our processes – not least through his successful collaboration with the managing directors of KraussMaffei Technologies. We are convinced that he will continue on this path with clarity and creative drive to successfully align KraussMaffei Technologies."

Stech said, "After many years in an environment full of technological, economic and geopolitical challenges, I look back with great gratitude on a time in which I was always surrounded by an exceptional workforce. Together, we achieved things that many initially thought were impossible. This cooperation, this willingness to push boundaries and create something new, was a joy for me. My special thanks go to all stakeholders in the company and, of course, to all employees. I leave with respect, gratitude and the conviction that this long-established company will continue to achieve great things in the future."

Musser said, "Together with my fellow managing directors Dr Frank Szimmat and Markus Bauer, I want to resolutely drive forward the further development of KraussMaffei Technologies. Our focus is on further expanding stability and performance and taking the necessary steps to successfully position the company in a dynamic market environment. I look forward to shaping this path together with our teams.”

Italian tyre manufacturer Pirelli has announced that Dario Marrafuschi will become the Head of its Motorsport Business Unit, effective 1 March. He succeeds Mario Isola, who will remain with the company until 1 July to assist with the leadership transition.

Marrafuschi joined Pirelli in 2008 and has held positions within the Formula 1 Research and Development department. Most recently, he led the development of the company's road products.

He will report to Giovanni Tronchetti Provera, Executive Vice-President of Sustainability, New Mobility & Motorsport. The appointment comes as the company continues its role as the tyre supplier for various global motorsport categories.

Isola departs the company following a tenure that included the expansion of Pirelli’s motorsport operations. The company stated that Isola will pursue other professional opportunities following his departure in July.