According to Mr. Vilmos Tokaji, Sales Director Southeast Europe at Continental Tires, today we no longer have to choose between environmental concerns and road safety – the most innovative tires can do both. The industry is changing: while the market is being challenged by the rise of Asian competitors, Continental has set technological and sustainability goals that go beyond current expectations, while maintaining its premium position. This interview is about market trends, the industry’s resilience and some concrete examples of sustainable innovation.

Emerging Asian tire brands are making inroads, especially in the lower-priced market, but at the same time there is a very strong segment characterised by quality, excellent test results and a strong R&D background. The two trends are simultaneous. What is Continental’s response to this market situation?

I can confirm that the market seems to be somewhat divided in the sense that the share of premium brands is stable, consumers are looking for these products, while at the same time the segment of low-priced tires is expanding at the expense of the mid-range. In other words, the market is segmenting, with the mid-range being under strong pressure. Our ultimate goal is to maintain our strong position in the premium segment. The effectiveness of our work is demonstrated by the fact that, in addition to our business results, our rankings in independent tests are also very good; we are not only holding our position steadily, but lately we have achieved more test wins than ever.

The industry’s Western European operations are under cost pressure and high wages and tax burdens are not expected to decrease in the years ahead. Do you think the industry needs to move further east if it is to remain competitive?

Yes, it’s a dilemma for the tire manufacturers, but I think we are in a better position now. Continental also closed a plant in Germany in 2022, which was a painful decision back then, but also necessary because our production setup is now more cost-efficient, with a strong footprint in lower-cost European countries. If we look at the question from a broader perspective and ask whether European tire production is competitive, we see that Asian players are also building factories in the eastern part of Europe. So, overall, the continent as a manufacturing location is not under threat, output capacity is increasing. Central and Eastern Europe is a clear winner in this process.

The industry has survived the Covid shock, the forced restructuring of logistics and raw material sourcing due to the Russian-Ukrainian war, the energy price explosion, and now things seem to be back on track. Is the industry that resilient?

Yes, I also see the industry as resilient. Although we are a supplier to the automotive industry, the bigger chunk of tire sales goes to the replacement markets, i.e. vehicle owners buy Continental tires as replacements. While the new car market is relatively volatile, the aftermarket is more crisis-resilient, which is reflected in the results of tire manufacturers.

What are consumers looking for in the replacement tire market? According to statistics from the manufacturers’ association ETRMA, the share and popularity of all season products is growing steadily.

Yes, this trend has been unchanged for years, both in Europe and in Hungary. I think that while many consumers will continue to look for traditional winter and summer tires, all season tires will most probably continue to gain ground in the upcoming years. We have been busy producing the best solution for the segment ourselves, too. Independent tests show that our AllSeasonContact 2 is indeed a very versatile, balanced tire.

How has your brand portfolio changed in recent years?

In a dynamically changing environment, we have to constantly review our portfolio. We discontinued our General Tire Passenger product line and our Gislaved brand in order to streamline our portfolio. Nevertheless, we are maintaining our multibrand approach and our broad brand portfolio is still our important asset.

The importance of R&D was mentioned. What can we expect from the tires of the future?

With constant research and development we want our tires to be even safer and have better performances all-around. At the same time, we put a lot of focus on sustainability criteria.

What exactly do you mean by sustainability?

Taking into account all the environmental factors that are linked to tires, across the whole value chain: sustainable materials, clean production, the use phase and the end-of-life, meaning recycling. In Europe, there is a lot of pressure to meet sustainability requirements, but we consider this not as a constraint but as an opportunity to differentiate ourselves. Our ambition is to be the most progressive tire manufacturer in terms of environmental and social responsibility.

What does this mean in practice? Can you give a concrete example, for example a tire? A tire that is as green as possible, but that has all the performance and safety features that we can expect in 2025.

The Continental UltraContact NXT contains up to 65 percent renewable, recycled and mass balance certified materials. Our most sustainable tire has already won several awards since its launch, including the Sustainability Award at the Swiss Automotive Show Innovation Awards 2023, the International Design Award 2023, the German Innovation Award 2024, the CLEPA Innovation Award 2024 and the Sustainability Award in Automotive 2025 in the category “Technology – Materials / Raw Materials, Recycling. The UltraContact NXT combines a high level of sustainable materials with maximum safety and performance: All the sizes have the best EU tire label (“A”) rating for rolling resistance, wet braking and external noise. Our goal is to have a renewable and recycled content of more than 40% of all our new products by 2030. The UltraContact NXT is an important step on this path – without compromising safety.

Do you think it is feasible to have a tire that is 100% sustainable? We can check off the energy part of production, which seems achievable in the near future. But what about raw materials?

I’m not an engineer, but even if this would be technically feasible, such a product would not yet be marketable because of the high price. However, Continental’s R&D experts are heavily working on it to develop a viable product. On top of our responsibility, regulatory pressure and consumer expectations are pushing us in this direction too. There is still a long way to go, but I truly believe that we are on the right path.