CHALLENGES FACING THE TYRE INDUSTRY
V.K. Misra
Director(Technical)
JK Tyre & Industries Ltd.
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GLOBAL ISSUE & CHALLENGES
AUTOMOTIVE AND RUBBER INDUSTRY
Environment Challenges
Impact of climate change is Growing Population &
significant Mobility
Climate protection •Among the growing
Scarcity of Natural resources middle class in emerging
economies
Economic Challenges Urbanization
•Almost 60% of the
Shortage of resources world's population
will live in cities by
2030
Rising prices for fossil fuels •Greater traffic
density leads to
increased noise
Changing Consumer demands emissions
Trend toward a sustainable
Policies
lifestyle
More stringent legislation
Societal demand for -to protect the environment
environmental stewardship
-to reduce emissions and fossil
Source: United Nations, Department of Economic and Social Affairs
fuel dependency
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CHALLENGES - RUBBER INDUSTRY
Economic (Volatility, Uncertainty,
Govt. Policy & Reforms
Complexity & Ambiguity)
Sustainability Ease of doing business
Digitization Infrastructure
CHALLENGES
Technology and R&D Economy of scale
Threat from China Operational Excellence
(Quality, Productivity, Cost,
… Low cost import
Delivery)
Higher manpower cost vis-à- People (skill development)
vis Developing nation
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GLOBAL ECONOMIC TREND
•OECD forecast – India is expected to
become the fastest-growing major
economy over the next two years.
•IMF chief Christine Lagarde described
India as a “bright spot“ on cloudy
global horizon.
•India could grow at a potential of 8%
on an avg. from fiscal 2016 to 2020
powered by greater access to banking,
technology adoption, urbanisation &
other structural reforms (Goldman
Sachs report-Sept ’15)
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VOLATILITY, UNCERTAINTY, COMPLEXITY & AMBIGUITY
V = Volatility. U = Uncertainty.
• The nature & dynamics of • The lack of predictability,
change • The prospects for surprise
• The nature & speed of • The sense of awareness &
change forces the understanding of issues
• Change catalysts. and events.
C = Complexity. A = Ambiguity.
• The multiplex of forces • The haziness of reality
• The confounding of issues • The potential for misreads,
• The chaos & confusion that • The mixed meanings of
surround an organization. conditions
• Cause-and-effect confusion
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SUSTAINABILITY CHALLENGES
Safe & Durable
Equitable
Bearable
Viable
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SUSTAINABILITY CHALLENGES
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SUSTAINABILITY CHALLENGES
Crude Oil based
Materials
Renewable Mineral Based Recycled
• It is possible to produce a tire with > 95 % non-crude oil base
• However, the application range today is still limited
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DIGITIZATION CHALLENGES
Driver & Passengers Devices Infrastructure Other Vehicles
Managing and Optimizing the information flow by system integration
of components
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DIGITIZATION ENABLERS
TYRE/INTEGRATED SENSOR MANUFACTURING/INTEGRATED SENSOR
DESIGN/INTEGRATED SENSOR
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TECHNOLOGY SCENARIO
India's Share of GDP Spent in R&D is Lower than Peers and Private Sector's Contribution is Limited
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TECHNOLOGY CHALLENGES
1 - New Concept Development 2 - Selection of low impact
8 - Optimization of end-of-life system • Dematerialisation materials
• Reuse of product • Shared used of the product • Non-hazardous materials
• Re-mfg./refurbishing • Integration of functions • Non-exhaustable materials
• Recycling of materials • Functional optimisation of products • Low energy content materials
• Clean incineration & components • Recycled materials
• Recyclable materials
7 - Optimization of initial life time
• Reliability and durabiliy
• Easy maintenance and repair
• Modular product structure 3 - Reduction of material
• Classic design • Reduction in weight
• User taking care of product • Reduction in volume
6 - Reduction of the environmental 4 - Optimization of production
impact in the user stage techniques
• Low energy consumption • Fewer production processes
• Clean energy source • Low/clean energy consumption
• Few consumables needed during use • Low generation of waste
• Clean consumables during use 5 - Efficient distribution system • Few/clean production
• No energy/auxiliary material use • Less/clean packaging consumables
• Efficient transport mode
• Efficient logistics
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LEGISLATIONS & REGULATIONS
Growth of tyre related legislations around the world…
• TREAD Act :
• Transportation, Recall Enhancement, Accountability and
Documentation Act
• REACH:
• Registration, Evaluation, Authorization and restriction of
Chemical
• End of Life Vehicles – EU legislation
• Labeling of Tyres – EU legislation
• Uniform Tire Quality Grade (UTQG) Standards
• Global Technical Regulation on Tyres – under consideration
These stringent global regulations throw up challenges of adherence and…
…optimizing various product performance goal conflicts…
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SUMMARY & CONCLUSION
Strategic Capability to be built to overconme various Challenges:
Market back Innovation Excellence
• Evolve from Manufacturing Company to a consumer centric Compan
• Cost Efficient R&D
• Speed of Delivery
• Value proposition to Customers
• Digitization
Operational Excellence
• Driving Efficiency (Quality, Productivity, Cost,Delivery & Safety)
• Customer Service
• Environmental Concerns
• People Skill Development
DON’T LIMIT YOUR CHALLENGES, CHALLENGE YOUR LIMITS
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