Manufacturing investment, artificial intelligence and whole-life tyre performance shaped industry developments during the week ending 12 July 2026. New capacity moved forward in Southeast Asia as European production contracted elsewhere. Fleet technology became more operational, while sustainability and regulation placed renewed focus on how tyres are designed, manufactured, managed and used.
Manufacturing and supply chain developments formed a central theme during the week.
Wanli Tire and Berjaya Property announced plans for a RM1.3 billion tyre factory in Selangor, Malaysia. The proposed site would produce passenger car and truck and bus radial tyres.
At full commissioning, the plant is expected to make five million passenger car tyres annually. Planned truck and bus tyre capacity stands at 1.2 million units.
The project follows Wanli’s investment in Cambodia and strengthens its emerging Southeast Asian production network. It also indicates that the region continues to attract Chinese manufacturers seeking scale, export access and supply chain resilience.
Read more about the Wanli Tire and Berjaya Selangor tyre plant.
European manufacturing moved in the opposite direction. Apollo Tyres completed the closure of its Enschede factory in the Netherlands on 30 June.
The decision concluded a restructuring process announced in April 2025. It also reflected the cost and demand pressures affecting established European manufacturing sites.
Apollo continues to serve European customers through its wider production and distribution network. However, Enschede’s closure increases attention on regional capacity, specialist product availability and supply resilience.
Read more about Apollo Tyres completing its Enschede factory closure.
Wholesale operations are also becoming more international. Grupo Andrés reported that exports generated 30% of its 2025 revenue, with the Spanish distributor supplying customers across 57 countries.
Its performance shows how established wholesalers are extending their reach beyond domestic replacement markets. International growth can diversify revenue, but it also increases exposure to logistics costs, currency movements and regional demand.
Read more about Grupo Andrés expanding tyre exports across 57 countries.
Connected vehicle technology continued its transition from innovation projects to practical fleet management.
Targa Telematics launched Maintenance Excellence, an Agentic AI platform designed to coordinate maintenance work and improve vehicle availability.
The system combines information from telematics devices, original equipment manufacturer systems, workshops and external data sources. It can identify developing faults, classify alerts and support maintenance scheduling.
Targa says the platform can automate routine administration and direct tasks to relevant stakeholders. This moves artificial intelligence beyond data analysis and towards operational decision support.
For tyre businesses, the significance lies in the connection between vehicle condition, tyre wear and fleet uptime. Pressure loss, alignment, suspension faults and operating conditions can all affect tyre performance.
Tyre providers may therefore need to connect their services with wider fleet maintenance platforms. Those unable to exchange data could become less visible within increasingly automated maintenance processes.
Read more about Targa Telematics’ Agentic AI fleet maintenance platform.
Environmental performance remained embedded in manufacturing, product development and motorsport operations.
Kumho Tyre outlined further work towards its 2045 net-zero target. Its programme includes increased use of sustainable materials, lower tyre weight and expanded end-of-life recovery activity.
These measures reflect a wider industry move beyond factory emissions alone. Manufacturers are examining raw materials, product efficiency, logistics and recovery across the tyre lifecycle.
Read more about Kumho Tyre’s sustainable materials and net-zero programme.
Goodyear Racing also retained the FIA’s three-star environmental accreditation. The rating covers environmental management within motorsport operations.
Although racing represents a specialist market, its technical and logistical demands can provide a visible test of environmental processes. Accreditation also reflects growing stakeholder expectations around event operations, materials and resource use.
Read more about Goodyear Racing retaining its FIA sustainability accreditation.
New European safety requirements brought tyre performance throughout service life into sharper focus.
A further phase of the EU General Safety Regulation took effect on 7 July 2026. The requirements for new passenger cars and vans include tests relating to worn tyres.
The change shifts attention beyond performance when a tyre is new. Manufacturers must increasingly consider wet grip as tread depth reduces during normal use.
That has implications for compound development, tread design, testing and homologation. Engineers must balance worn wet grip with rolling resistance, mileage, noise and production cost.
The regulation could also support longer tyre use where safety performance is maintained. This connects road safety with resource efficiency and waste reduction.
For retailers and fleets, whole-life performance may become a more important purchasing consideration. Initial price and new-tyre label results may no longer provide a complete measure of value.
Read more about how EU safety rules are increasing scrutiny of worn-tyre performance.
ZC Rubber and its research partners received recognition through a China National Science Award.
The project covered high-performance tyre technology and intelligent manufacturing. Its recognition shows how product research is becoming increasingly connected with automation and advanced production systems.
Manufacturers are investing in process control, data analysis and digital production alongside compounds and tread technology. These capabilities can improve consistency, efficiency and development speed.
Read more about the ZC Rubber tyre project receiving a China National Science Award.
Michelin expanded its UK electric vehicle fleet with 19 additional electric vans.
The vehicles will support company operations and reduce direct fleet emissions. The deployment shows how tyre manufacturers are applying decarbonisation measures within their own transport activities.
Electric vans also create practical operating data around range, charging, payload and tyre use. Such experience can inform conversations with fleet customers making similar transitions.
Read more about Michelin adding 19 electric vans to its UK fleet.
Michelin confirmed a global rollout for its new-generation XHA3 construction tyre during 2026 and 2027.
The tyre is intended for construction and quarrying equipment. Its launch reinforces continued investment in specialist products where durability, traction and operating cost remain central.
Off-highway tyre development can receive less attention than passenger and fleet innovation. However, these products operate in demanding environments where downtime and premature damage carry substantial costs.
Read more about the Michelin XHA3 construction tyre rollout.
No single announcement defined the week. The wider significance came from the convergence of several structural changes.
Manufacturers are adding capacity while adopting automation and intelligent production. Fleet operators are moving towards AI-supported maintenance. Sustainability is becoming part of product, manufacturing and transport decisions rather than a separate programme.
Regulation is also widening the definition of tyre performance. Safety at the point of sale remains important, but policymakers increasingly expect tyres to perform consistently throughout their usable lives.
Together, these developments point to a more connected and globally integrated tyre industry. Future competitiveness will depend on manufacturing resilience, useful data, whole-life performance and measurable environmental progress.
Tagged with: global tyre industry, tyre manufacturing investment, fleet artificial intelligence, worn tyre performance, sustainable tyre materials, tyre supply chains, intelligent manufacturing, connected fleet maintenance, electric vehicle fleets, tyre regulation, off-highway tyres, circular economy
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
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