Tyre Industry Rebounds in October 2025: Continental, Pirelli Surge, Domestic Sector Set to Benefit
The tyre industry witnessed a significant upturn in October 2025, with Continental and Pirelli experiencing a surge in sales and positive outlooks. Meanwhile, Michelin issued a profit warning, but it had limited impact on the other two companies. The domestic tyre sector is also showing signs of recovery.
Continental reported impressive Q3 2025 results, driven by strong winter tyre sales. The company's revenue reached around €5 billion, with an operating margin of 11.4%. This led to positive future profit expectations. Pirelli, too, is active with exclusive motorsport tyre developments for 2026, although the profit outlook specifics were not detailed.
Exports for most Original Equipment Manufacturers (OEMs) continued to grow at a solid rate year on year. The domestic tyre sector, despite a variable profit profile, is expected to benefit from the GST 2.0 amendments. These amendments are projected to significantly boost vehicle volumes in the near to medium term, aiding margin recovery.
OEM wholesale volume for September 2025 increased due to the festive season and expected GST rate fall. A brokerage firm sees 'green shoots' of margin recovery for domestic tyre players, aiding profit growth going forward. The GST Council's decision to lower tax rates on most auto segments has delivered a boost to the car sector. As a result, tyre producers' shares rose up to 4% on Wednesday, 8 October, driven by higher volumes and cost-cutting initiatives. The CV market also posted strong volume prints in September 2025, with recovery seen in the LCV segment.
In summary, the tyre industry is showing signs of recovery, with Continental and Pirelli leading the way with strong sales and positive outlooks. The domestic sector is also expected to benefit from government initiatives, leading to increased volumes and improved margins. The CV market's recovery is another positive sign for the industry.
