Recent Developments in Automotive Tire Landscape

Automotive Tires Market
Automotive Tires Market

Increasing demand for automotive tires in passenger-car segment has led number of manufacturers to increase their production capacities.

Bridgestone Adopts Zero Deforestation Policy

Bridgestone has made an announcement of commitment to ‘No Exploitation, No Deforestation’ policy as a part of company’s recently released global sustainable procurement policy.

The novel policy is being focusing on protection of wildlife habitats and rainforests as well as addressing human and labor rights abuses, results in making the company the third key tiremaker to accept similar measure.

Kristin Urquiza, Mighty Earth Campaign Director stated that with the new announcement by Bridgestone, deforestation-free rubber manufacturing is becoming the standard market expectation. The players in the market, who wanted to sell rubber should be aware that engaging in land grabbing or deforestation is likely to lead to losing access to international markets. Total revolution in the tire and rubber industries has been observed in the recent past.

Demand for organic rubber is driven by the manufacturing of tires for the more than one billion vehicles that operate throughout the world. A great part of the development of common elastic estates to take care of increasing global demand has originated from to a great degree fast deforestation in Cambodia, Laos, Vietnam, and Myanmar further, home to jeopardized species like gibbons, elephants and tigers. From 2001-14, tree cover misfortune in Cambodia boosted quicker than any nation across the world, apropos the World Resources’ Institute Global Forest Watch. Indonesia, a worldwide deforestation hotspot, is the world’s biggest elastic maker, and Bridgestone/Firestone works the world’s biggest elastic manor in Liberia, crossing over 1 million acres of land.

The tire business represents no less than 70 percent of the world’s organic rubber utilization with the best five brands such as Bridgestone, Michelin, Goodyear, Continental and Pirelli, representing about 50 % of the business’ adoption. Michelin has beforehand received a solid No Deforestation approach and Pirelli also made an announcement of sustainable rubber policy.

Yokohama Announces Expansion of its manufacturing Unit in India

Yokohama Rubber Co. has recently made an announcement of expansion of passenger-car tire manufacturing unit in India. The expansion of the unit will boost Yokohama’s production capacity by 830 thousands. The expansion will manufacture 1530 thousand tires, up from 700 thousand tires. The company decided to increase its local production capacity to avoid shortfall over the medium term, due to increase in the India’s automobile market, which is fueling more sales of tires. The total planned investment has been estimated to reach slightly above US$ 60 million. The construction of the new plant is anticipated to start in March this year and the production will start in the 4th quarter of 2019.

Apollo Breaks Ground on Seventh Manufacturing Factory Globally

Apollo has recently laid the foundation of its 7th manufacturing unit globally. This new facility is located in the state Andhra Pradesh in India.

Apollo tires had bought 200 acres of land from state government for setting up the plant. Construction of the plant is poised to start in coming six months and the tire production facility will commence within 2 years. Apollo has planned to use this plant for the manufacturing of passenger-car tire production as demand in this segment is rapidly increasing. Ultimately, the plant is likely to start manufacturing of other type of tires in near future as well.

Aforementioned companies are profiled in the recent report published by Future Market Insights on global automotive tires market. The market for automotive tires is estimated to witness expansion at 6.3% CAGR during 2017-2027.

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About Nikhil Kaitwade 41 Articles
With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.