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As India’s tyre manufacturers face the persistent challenge of rising raw material costs, Apollo Tyres is exploring sustainable alternatives to natural rubber to mitigate costs and reduce environmental impact.
The company is collaborating with research institutions to develop innovative, bio-based materials for tyre production.
Additionally, Apollo Tyres has partnered with Tyromer to incorporate recycled rubber from end-of-life tyres into its production process.
This strategic move aligns with the company's broader sustainability goals.
The persistent volatility in natural rubber prices, coupled with India's rubber shortage, has put significant pressure on manufacturers. Natural rubber prices have fluctuated dramatically, and the industry is grappling with a domestic shortfall of approximately 550,000 tonnes.
While Apollo and other tyre manufacturers are taking steps to mitigate rising costs, the industry as a whole faces significant challenges.
Sustainable materials are central to Apollo’s long-term strategy.
The company also benefits from market dynamics in developed regions like Europe and the US, where synthetic rubber—used more widely in passenger car tyres—reduces reliance on natural rubber.
These markets offer greater flexibility in passing on cost increases, cushioning Apollo from raw material price volatility.
The broader tyre industry remains under pressure, with high tariffs on imported rubber exacerbating cost challenges.
According to Singh, manufacturers are struggling to absorb dramatic price swings, leading to supply chain disruptions and squeezed margins.
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