Faced with surging raw material costs, Apollo Tyres is turning to sustainable alternatives to natural rubber in a bid to reduce expenses and lessen its environmental footprint. The company is actively collaborating with research institutions to develop bio-based and innovative materials for tyre manufacturing.
As part of its sustainability initiatives, Apollo has also partnered with Tyromer to integrate recycled rubber from end-of-life tyres into its production process. This aligns with the company’s long-term goals, as it aims to source 40% of its raw materials from renewable or recycled sources by 2030, according to Chief Financial Officer Gaurav Kumar.
Commenting on industry trends, Anurag Singh, Managing Director of Primus Partners, noted, “Nearly all tyre manufacturers are ramping up research and development efforts to enhance rolling resistance, adopt greener chemistries, and deliver better products to consumers.”
Despite these advancements, the tyre industry continues to grapple with challenges, including volatile natural rubber prices. Shashi Singh, President of the All India Rubber Industries Association, highlighted the issue, stating, “Natural rubber prices have seen drastic fluctuations, with a 13% drop followed by a 55% spike. India’s dependence on imported rubber has further compounded cost pressures and disrupted supply chains.”
While Apollo’s adoption of sustainable materials is a strategic response to these challenges, the company also benefits from operating in markets such as Europe and the U.S., where synthetic rubber alternatives reduce dependence on natural rubber. Additionally, these regions allow manufacturers greater flexibility to pass on cost increases, helping Apollo cushion the impact of price volatility.
The broader tyre sector in India, however, faces significant hurdles, including high tariffs on imported rubber and steep price swings. These factors are squeezing profit margins and straining supply chains, underscoring the urgency for manufacturers to adopt innovative solutions to navigate this challenging landscape
Apollo Tyres is recognized for its advanced technology in tire design and manufacturing, which contributes to improved safety and fuel efficiency. The company’s focus on research and development, along with strategic global partnerships, supports its ongoing efforts to deliver reliable and cutting-edge tire solutions to customers around the world.
