Financial Reports from Tire Manufacturers Released in Rapid Succession; Strategic Layout in Circular Materials Accelerates

1. Market Dynamics

During its participation in the United Nations Economic Commission for Europe (UNECE) working group on tire abrasion, Tyres Europe stated that a unified global standard for tire abrasion is crucial for ensuring regulatory consistency and preventing market fragmentation. It is also a vital prerequisite for the implementation of the Euro 7 framework. The association pledged to continue providing technical support to facilitate the development and adoption of implementable abrasion standards.

Cordiant Holding, a Russian company, forecasts that the local passenger car tire market will contract by 17% in 2025 due to sluggish automotive demand; demand for new vehicles has already seen a year-on-year decline of 16%. The company plans to drive the expansion of the premium tire brands it has acquired and to restart several tire and accessory manufacturing facilities in Russia that were previously operated by foreign firms.

The UK Tyre Recovery Association (TRA) has highlighted that since the implementation of stricter verification protocols for waste tire exports in October 2025, the compliance rate has remained below 25%, resulting in a massive influx of waste tires into unregulated processing facilities in India. The association is urging the UK government to follow Australia's lead by adopting an "export-only-shredded-tires" policy and eliminating unjustified exemptions for waste tire disposal, with the aim of regulating exports and revitalizing domestic recycling capacity.

2. Industry Data

Due to market closures associated with the Chinese New Year holiday, trading in the global rubber futures market was generally subdued during the third week of February. However, contracts on the OSE (Osaka Exchange) and SICOM (Singapore Commodity Exchange) closed slightly higher, bolstered by a weakening Japanese yen, rising oil prices, and short covering; notably, the benchmark OSE contract posted a weekly gain of 2.7%.

The German Rubber Industry Association (WDK) released data for 2025, revealing a continuous decline in production volume, sales revenue, and employment figures within the rubber sector, with tire production experiencing a particularly sharp drop. The association warned that the German rubber industry is grappling with weak domestic and international demand as well as fierce cost competition. Issues such as high energy costs and heavy taxation are compelling companies to relocate investments abroad; consequently, the association is appealing to the government for political support to ensure the industry's survival.

3. New Products and Technologies

Toyota Motor Corporation is set to deploy seven humanoid robots at its manufacturing plant in Ontario, Canada, to automate material handling tasks on the production line for its RAV4 model. This initiative marks one of the first commercial applications of humanoid robots within a large-scale automotive manufacturing facility, aiming to optimize production efficiency and alleviate the burden of repetitive physical labor on human employees. 4. Investment and Production

India’s BKT has announced an investment of €325 million to officially enter the Indian passenger car tire market, with plans to expand into the all-steel radial tire sector for trucks and buses by June 2026. To this end, the company will undertake capacity expansion and R&D initiatives, and establish two separate entities—BKT Tyres and BKT Carbon—to segregate its tire and materials businesses.

Solvay has completed the construction of Europe’s first bio-circular precipitated silica production facility in Livorno, Italy. Utilizing rice husk ash as a raw material, the facility produces highly dispersible silica; each ton of product generated results in a 35% reduction in carbon emissions, thereby helping to boost the proportion of recycled materials in tires to 15%.

Cabot Corporation has announced that its manufacturing facilities in Indonesia and China are now equipped to produce circular reinforcing carbon materials derived from pyrolysis oil obtained from end-of-life tires. This capability enables the company to serve tire manufacturers across all major global regions. This strategic move aims to meet the industry's growing demand for sustainable materials and to strengthen supply chains through a "produce locally, sell locally" model, thereby contributing to the realization of global tire circular economy and sustainability goals.

5. Corporate Updates

Michelin has released its financial results for 2025, reporting moderate overall growth in the tire market, albeit with weakness in the original equipment (OE) sector. Sales of OE and replacement tires for passenger cars and light trucks grew by 2% and 1%, respectively, with OE demand in China surging by 9%. In the truck tire segment, OE sales (excluding China) declined by 4%, while replacement tire sales rose by 4%. The company anticipates overall market stability in 2026, though demand may soften during the first half of the year. Market growth for passenger car and truck/bus tires (excluding China) is projected to range between -2% and 2%.

In 2025, Nexen Tire generated revenue of 3.19 trillion KRW (approximately 15.3 billion RMB) and an operating profit of 170.3 billion KRW (approximately 800 million RMB), with performance growth driven by factors such as the expansion of its European manufacturing facility. For 2026, the company plans to focus on product innovation, channel optimization, and brand building, aiming to achieve simultaneous growth in both sales volume and product quality across global markets. Yokohama Rubber announced its fiscal year 2025 results, reporting a fifth consecutive year of growth in both sales and profit, reaching all-time highs. The tire segment delivered a standout performance, with overall sales rising 14% year-on-year and operating profit increasing 22%; the off-highway tire sector emerged as a key driver behind this overall growth.

Pirelli reported 2025 sales of €6.77 billion—a 4.2% increase excluding exchange rate fluctuations and other factors—while both profit and profit margins saw modest improvements. The company projects 2026 revenue to range between €6.7 billion and €6.9 billion, with an adjusted EBIT margin of approximately 16%.

French automotive components manufacturer Akwel reported 2025 sales of €938 million, a 5% year-on-year decline, with the drop widening to 10.2% in the fourth quarter. Impacted by a downturn in the automotive industry and intense competition from Chinese rivals, the company anticipates a potential double-digit decline in 2026 revenue; moving forward, it plans to strictly control costs and optimize project investments.

Tokai Carbon’s carbon black division experienced a downturn in 2025, with sales falling 6.1% year-on-year and operating profit plummeting nearly 40%. This decline was attributed to production cuts by tire manufacturers, product price reductions, and non-recurring losses incurred during the integration of a Bridgestone subsidiary in Thailand. The group expects a business recovery in 2026, projecting year-on-year increases of 8% in revenue and 10% in EBITDA, though operating profit is forecast to see a slight year-on-year decline of 6.1%.

Nokian Tyres has released a climate transition plan approved by its Board of Directors, featuring a net-zero greenhouse gas emissions target aligned with the 1.5°C global warming limit. By the end of 2025, the company had reduced its absolute Scope 1 and Scope 2 emissions by over 38% compared to 2022, with a goal to achieve a 42% reduction by 2030; notably, its facility in Romania stands as the world's first full-scale, zero-emission tire factory.