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.”
The rollout of GST 2.0 marks a defining moment in India’s economic journey – a reform that may well prove even more consequential than the original introduction of the Goods and Services Tax. Especially for a sector like tyres, the recent reduction in (GST) on tyres is far more than just a change in numbers. It is a transformative step that touches every wheel turning on India’s roads – from a farmer’s tractor to a trucker’s long-haul trailer and from a commuter’s scooter to a construction vehicle powering the nation’s infrastructure.
For years, tyres were taxed at 28 percent – the highest GST slab, clubbed with luxury and demerit goods. This categorisation never truly reflected the essential role tyres play in our everyday lives. Tyres are not a luxury. They are a fundamental enabler of mobility, supporting the movement of people and goods across cities, towns and villages. By bringing GST rates on tyres down to a more rational level, the government has addressed a long-standing anomaly and set the stage for widespread benefits across the economy.
The most visible impact of this move will be felt on the ground – literally. Lower GST means more affordable tyres for all users. Especially for transporters and fleet operators, tyres account for a significant chunk of vehicle running costs. A reduction in tax translates into lower replacement costs, freeing up working capital and improving operational margins. Farmers, small traders, delivery personnel, service providers, transporters – every segment that relies on mobility will feel this relief.
India has been working hard to bring down logistics costs, which are believed to be about 13–14 percent of GDP – much higher than global benchmarks. Tyres have a direct bearing on vehicle operating efficiency, fuel consumption and maintenance schedules. When tyres become more affordable, operators can replace tyres on time, and run vehicles more efficiently.
This naturally leads to lower logistics costs. Reduced logistics costs ripple across the value chain, helping industries move goods faster and at lower cost. This aligns perfectly with India’s ambition to become a more globally competitive manufacturing and trading hub.
Tyre industry’s story is not just urban – it’s deeply rural as well. Tractor tyres, power tiller tyres and tyres for animal-drawn vehicles are integral to the agricultural economy. A reduction in GST brings meaningful relief to farmers and small cultivators who rely on these tyres for their daily operations. By easing this cost, the government has extended direct support to rural mobility and agricultural productivity – an often underappreciated but critical outcome of this reform.
One of the most powerful yet often overlooked impacts of this decision lies in road safety. Worn-out tyres are a major cause of road accidents, particularly on highways. High replacement costs often lead to tyres being used well past their safe life.
With lower GST making new tyres more accessible, both individual motorists and commercial fleet owners are more likely to replace tyres on time, keeping vehicles safer and reducing accident risks. This complements the government’s broader road safety agenda, making highways not just faster but safer for everyone.
For the Indian tyre industry, which is one of the largest in the world, this reform is a game changer. It creates a more balanced tax structure, supports better cash flow, improves compliance and strengthens the competitiveness of domestic manufacturers. It will also encourage investment and capacity expansion, enabling the industry to serve growing domestic demand and tap export opportunities more effectively.
The GST reduction on tyres is a strategic, forward-looking policy decision that will benefit the entire mobility ecosystem. It acknowledges the essential role tyres play – not just as a product, but as a critical enabler of transportation, logistics, rural livelihoods and road safety.
As this reform takes root, its positive impact will be felt by consumers, businesses, farmers and industries alike. The tyre industry, represented by ATMA, welcomes this move wholeheartedly and remains committed to working alongside the government to strengthen India’s journey towards affordable, efficient and safe mobility for all.
The author is Director General of the New Delhi-based tyre industry association, Automotive Tyre Manufacturers’ Association (ATMA).The views expressed here are personal.
WACKER Secures Gold Medal In EcoVadis Sustainability Rating
- By TT News
- December 18, 2025
WACKER has earned the 2025 Gold Medal from the independent rating agency EcoVadis, marking its continued recognition for sustainable practices and responsible corporate governance. This distinction places the company within the top five percent of all businesses assessed by EcoVadis (over 1,000 companies globally). WACKER's overall score improved from 77 points (in 2024) to 79 points, driven largely by enhanced reporting and concrete actions focused on Scope 3 emissions and ethical standards.
The EcoVadis assessment measures the quality of a company’s sustainability management through a methodology grounded in international frameworks like the Global Reporting Initiative, the UN Global Compact and ISO 26000. Performance is scored from 0 to 100 across four core areas: environment, labour and human rights, ethics and sustainable procurement, using 21 specific indicators.
In line with its commitment, WACKER provides its EcoVadis evaluation to customers as a standardised and credible validation of its sustainability efforts. The company has also defined ambitious climate targets, aiming to halve its absolute greenhouse gas emissions by 2030 relative to 2020 levels. Progress is already evident, with a 30 percent reduction achieved as of 2024. Looking further ahead, WACKER strives to reach net-zero emissions across its operations by the year 2045.
Peter Gigler, Head of Corporate ESG, WACKER, said, “The result confirms our initiatives in many key areas. It provides our customers with invaluable proof.”
Craig Borman Appointed As Head Of OTR At BKT USA
- By TT News
- December 18, 2025
Balkrishna Industries Ltd (BKT Tires), a global leader in off-highway tyre manufacturing, has appointed Craig Borman as Head of OTR at BKT USA. The appointment is in line with BKT’s long-term strategy through 2030.
Borman brings with him 20 years of experience across off-road equipment, tyres and rubber tracks. He will play a key role in leading BKT USA's OTR team and expanding the company's presence in this market while increasing awareness of the value and dependability of BKT's range of products.
Borman said, “I’m extremely excited to join the BKT family and to build off the successes that this team has already achieved. I look forward to engaging with our partners, determining how we can accelerate our mutual growth and working towards achieving BKT’s vision of being a recognised leader in the OTR segment.”
Christian Kötz To Succeed Nikolai Setzer As Continental CEO In Planned Handover
- By TT News
- December 18, 2025
The Supervisory Board of Continental AG confirmed a significant leadership transition during its meeting on 17 December 2025. Christian Kötz will be appointed as the new Chairman of the Executive Board and Chief Executive Officer, effective 1 January 2026. He succeeds Nikolai Setzer, who will step down from the Executive Board on 31 December 2025. Setzer's departure follows more than 16 years as a board member, including the last five years in the CEO role, and occurs by mutual agreement as the company reaches a pivotal point in its strategic evolution.
This planned change in leadership aligns with the substantial progress Continental has made in its transformation into a pure-play tyre company. Major structural milestones have been achieved, including the spin-off of Aumovio and the signing of an agreement to sell the Original Equipment Solutions (OESL) business area. Regarding the planned 2026 sale of ContiTech, internal preparations are largely complete. The market outreach phase has concluded, and a structured sales process is scheduled to begin in January 2026, setting the stage for the final step in the corporate realignment.
Kötz’s extensive background within the tyre business, dating back to 1996, positions him to lead this final phase. A member of the Executive Board since 2019, his previous leadership roles within the Tires group sector included responsibility for the passenger car tyre replacement business in the EMEA region, the original equipment and commercial vehicle tyre business units and global research and development for passenger car tyres. His many years of trusted collaboration with Nikolai Setzer are expected to ensure continuity during the transition.
Kötz will lead an Executive Board comprising several key figures. Alongside him and Philip Nelles, who has headed the ContiTech group sector since 2021, are Roland Welzbacher and Ulrike Hintze. Welzbacher joined the board in August 2025 and assumed the role of Chief Financial Officer on 1 October 2025. Hintze was appointed to the board on 1 July 2025, serving as Chief Human Resources Officer and Director of Labour Relations. This board will be responsible for driving the tyre business forward, completing the corporate realignment and, following the sale of ContiTech, integrating the remaining group functions into the tyre organisation.
Wolfgang Reitzle, Chairman of Continental’s Supervisory Board, said, “Nikolai Setzer has been instrumental in shaping Continental, realigning the organisation and paving the way for three strong, independent companies. For this, he has the thanks of the entire Supervisory Board as well as my personal gratitude. With this handover, we are consolidating responsibility for the tyre business, the realignment and the remaining tasks of the group functions in one role. Christian Kötz is one of the most distinguished managers in the global tyre industry. With his extensive experience and passion for Continental, we firmly believe he is the right choice to lead the company successfully into the future.”
Setzer said, “In recent years, we have succeeded in transforming a diverse portfolio of businesses into three strong, independent champions. After 28 years at Continental, now is the right time for me to hand over responsibility to Christian Kötz. I’m extremely grateful for the journey we’ve all shared and proud of what we’ve all achieved together. I firmly believe that the tyre business, ContiTech, Aumovio and OESL have a promising future ahead.”
Kötz said, “I would like to thank the Supervisory Board for its trust and am excited about this new responsibility. Continental has been my professional home for three decades. Together with the Executive Board team and all colleagues throughout the company, we will complete the realignment and continue the success story of our tyre business.”
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