The automotive tyre industry faces a delicate balancing act—delivering durability, performance, and sustainability while navigating evolving consumer expectations and stringent regulations. With the rise of electric vehicles (EVs), tyre makers must innovate to enhance grip, fuel efficiency, and longevity, all while reducing rolling resistance and environmental impact. Additionally, increasing competition from global and low-cost manufacturers adds further complexity to the market landscape.
CEAT is actively addressing these challenges by shifting consumer perception of tyres from a mere commodity to a performance-driven product category. Speaking to Mobility Outlook, Lakshmi Narayanan B, Chief Marketing Officer of CEAT, highlighted the role of EVs in accelerating this shift, stating that electric vehicle tyres differ significantly from those used in internal combustion engine (ICE) vehicles. This emerging segment presents a unique opportunity to redefine product differentiation and consumer engagement.
On the global front, CEAT is strategically positioning itself as a ‘quality brand’ rather than solely targeting the premium segment, particularly in markets like Europe, where macroeconomic conditions favour value-for-money offerings. While each market presents unique dynamics, the tyre maker sees strong growth potential in the European mid-tier segment and has recently ventured into the US commercial vehicle space, with further expansion plans in the pipeline.
Strategy For India’s Evolving Tyre Market
In India, tyre purchasing decisions have traditionally been cost-driven, with quality often taking a backseat. Since tyres typically last up to 40,000 kilometers before replacement, convincing consumers to invest in premium options has been a challenge. However, as Lakshmi Narayanan, explained, consumer perception is shifting.
Earlier, vehicles were seen merely as transportation tools, but today, they represent aspirations, especially with the rise of compact SUVs (CSUVs) and SUVs. Just as the paint industry evolved from a focus on protection to becoming a symbol of pride, tyres are undergoing a similar transformation. Owners of premium vehicles now expect high-performance tyres that match their vehicle’s capabilities, creating a growing demand for superior products.
Consumer engagement is also accelerating with digital influence. CEAT is responding by emphasising value-driven innovations tailored to Indian needs, he said. For instance, the company introduced tread wear indicators—built-in markers that signal when a tyre has reached the end of its lifespan, simplifying maintenance decisions for users. Another innovation, ‘Puncture Safe’ tyres, caters to two-wheeler riders, reducing the inconvenience of unexpected punctures, especially for daily commuters.
Road To Sustainable Tyres
Lakshmi Narayanan said that the awareness around eco-friendly tyres and their environmental impact is still in its early stages. While consumers are becoming more conscious of tyre performance and safety, understanding the composition and sustainability of tyres is yet to gain traction. One major shift needed is in tyre disposal practices. In Western markets, customers pay dealers for proper tyre disposal, whereas in India, the reverse is true. Changing this mindset will be crucial in driving sustainability in the tyre industry.
While widespread adoption of sustainable tyres may take time, increasing environmental awareness across different aspects of life—such as clothing, packaging, and daily consumption habits—is gradually influencing consumer behaviour. As sustainability becomes more ingrained in lifestyles, the demand for eco-friendly tyres will follow, he observed.
Until this transition gains momentum, the industry is taking responsibility through extended producer responsibility initiatives, ensuring proper tyre disposal and recycling while consumer awareness continues to evolve.
Digital Evolution
The rise of online tyre sales is reshaping the aftermarket landscape, requiring a seamless blend of digital engagement and physical service networks. While tyres ultimately need professional fitting, balancing, and alignment at a physical location, digital platforms play a crucial role in influencing consumer choices.
Today, customers invest significant time in online research—checking tyre sizes, comparing brands, and shortlisting options—before visiting a store. Recognising this shift, the industry, including CEAT, is focusing on enhancing digital search visibility, improving customer awareness, and streamlining the selection process. Additionally, at-home tyre fitting services are emerging as a convenience-driven solution, particularly in urban markets, he pointed out.
As digital and physical channels continue to converge, tyre makers are strategically positioning themselves to enhance customer experience, ensuring a smoother transition from online selection to offline service.
Customer Trust
In a market where tyres appear visually similar, differentiation is a challenge. However, consumers are increasingly aware of design elements like broader profiles, blockier tread patterns, and stone-resistant gaps. Further, tyre labelling by the Bureau of Energy Efficiency (BEE) is expected to aid differentiation, allowing customers to choose tyres based on energy efficiency ratings, similar to home appliances.
For commercial vehicle tyres, the key factors influencing purchase decisions are mileage and durability, as fleet operators prioritise reducing downtime and optimising Total Cost of Ownership (TCO). A growing focus on fuel efficiency has led CEAT to promote tubeless commercial tyres, highlighting their potential to lower operational costs, he mentioned.
Strengthening Brand
Building brand trust requires consistency. CEAT follows a structured approach, rooted in the Deming philosophy of continuous improvement. The company aims to maintain reliability by refining processes daily, ensuring its offerings meet evolving customer expectations.
With the auto industry facing volatility and longer replacement cycles due to product durability improvements, CEAT balances its portfolio across various categories—OEM supply, aftermarket sales, and international business—to maintain steady revenue streams.
Ensuring Dealer & Technician Excellence
Local dealerships remain a key touchpoint for tyre sales, but CEAT also invests heavily in dealer and technician training. While dealers shape brand perception, technicians play a critical role in customer experience. Proper tyre fitting, balancing, and alignment ensure a smooth drive, reinforcing trust and loyalty, he said.
Since tyres have long purchase cycles and low consumer engagement, maintaining brand loyalty requires more than just quality products. To address this, the tyre company focuses on reliability—ensuring that it consistently delivers on promises.
Lakshmi Narayanan concluded by stating that through a strategic alignment of marketing, service excellence, and technological innovation, the company aims to foster lasting customer relationships and ensure repeat business in an increasingly competitive industry.
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