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The race to net zero

Retreading as a path to a circular future.

Through smart reuse, lower demand for virgin material, and cleaner fleet operations, retreading is helping transform the way mobility meets climate responsibility.

Lower emissionsResource efficiencyCircular mobility
Net-zero horizonGlobal
🇺🇸USA
2050
🇪🇺EUROPE
2050
🇮🇳INDIA
2070

Why it matters

Retreading directly reduces tyre waste, lowers material demand, and cuts emissions across logistics-heavy industries.

Three pillars of circular economy

Reduce • Reuse • Recycle • Retread

REDUCE•

Retreading reduces the need for new tyre production and lowers material and energy consumption.

REUSE•

A worn tyre can be revitalized and put back into service through a precision retreading process.

RECYCLE•

Retreading helps reuse valuable rubber and reduces waste, while supporting circular material flows.

RETREAD•

Retreading is a green and sustainable alternative to new tyres, blending craftsmanship with innovation.

What is retreading?

Retreading is a green and sustainable alternative to new tyres.

Retreading is a technical process of high precision and craftsmanship used to rejuvenate an old worn-out tyre into a renewed one. It is widely adopted in both commercial vehicles and aviation, where high-performance reuse of tyre assets is essential.

Tyre retreading is largely done in commercial vehicles, which account for roughly 80% of the market. Trucks account for 60-65%, while buses account for 15-20%. Off-highway tyres, including tractors, account for about 12-15%.

Market usage

Commercial

50–60%retreaded

Aviation

90%+retreaded

Retreading - strong pillar of a circular economy

Retreading saves resources and cuts emissions.

57

litres

of oil saved on every tyre

44

kgs

of rubber saved on every tyre

136

kg

of COâ‚‚ prevented on every tyre

New tyre

  • • 100 Kg COâ‚‚
  • • Raw material: 20 Kg COâ‚‚
  • • Transport: 64 Kg COâ‚‚
  • • Tyre manufacturing process: 184 Kgs COâ‚‚

Retread tyre

  • • 21 Kg COâ‚‚
  • • Raw material: 8 Kg COâ‚‚
  • • Transport: 19 Kg COâ‚‚
  • • Tyre manufacturing process: 48 Kgs COâ‚‚

Retreading will accelerate India’s goal of carbon neutrality

A major reduction in oil, rubber and COâ‚‚ use.

FY24

1 Cr tyres retreaded

Reduction of 57 Cr litres of oil usage

FY28

1.3 Cr tyres retreaded

Reduction of 74 Cr litres of oil usage

Impact

Savings of 44 Cr KGs of rubber

Preventing 136 Cr KGs of COâ‚‚ emission

Opportunity

Savings of ~57 Cr KGs of rubber

Preventing 177 Cr KGs of COâ‚‚ emission

With the continued commitment of the Indian retreading industry to provide safe and sustainable alternatives to new tyres, we expect a major reduction in the usage of natural resources like oil, natural rubber and emissions of COâ‚‚.

Challenges

The industry must scale with quality and trust.

1

Grossly underpenetrated and fragmented, with only about 35% of tyres being retreaded by organised retreaders in India, compared to 80% in developed markets such as USA.

2

Untrained and ill-equipped small and fragmented retreaders continue to limit quality consistency and scale.

3

Common myths still exist: retreaded tyres are unsafe, do not perform as well as new tyres, and don’t last as long.

4

As a result, several OEMs and corporations do not actively support retreading as a mainstream concept.

Fueling our acceleration: a call for NITI Aayog’s support

Policy support to unlock India’s circular mobility opportunity.

1

EPR: Urge CPCB and MoEFCC to implement an EPR credit system to retreaders in the EPR portal.

2

Common Standards: implement common standards for retreader and retread material manufacturers to improve industry quality and organisation.

3

Nationwide Training Program: provide assistance in training retreaders across India for mandatory implementation of EPR policy and BIS standards.

4

Carbon Credit Monetization: develop a framework for fleet owners and operators to monetize carbon credits and incentivize sustainable practice.

A case study – a fleet’s journey towards sustainability

Fleet transformation through retreading at scale.

30,000+

tyres retreaded

17+

lacs litres of oil usage reduced

13+

lacs kgs of rubber usage reduced

40+

lacs kgs of COâ‚‚ emissions reduced

INDAG partnered with a 1,200+ vehicle fleet operator in April 2023 to deliver nationwide retreading solutions. One-stop shop: premium retread materials and strict process control through audited retreaders across 11 locations in India. The fleet operator increased average tyre retreading from 52% to 65% in a year.

Retreading industry in India vs USA

Opportunity is still larger than today’s penetration.

India

Approx. 10 million tyres retreaded every year

Only 1/3rd of the market is organised (10K+ retreaders)

USA

Approx. 16 million tyres retreaded every year

80% of the market is organised (650 retreaders)

How government around the world are promoting retreading

Incentives and support are accelerating circular mobility.

Germany

€2.4 million grant given to Rigdon, a German retreader, to construct a state-of-the-art passenger tyre retreading plant.

USA

A bill proposes a 30% tax credit per retreaded tyre for fleets, aiming to reduce reliance on imported tyres and boost domestic manufacturing.