Manufacturing at Risk as Australia’s Retread Tyre Sector Faces Steep Decline, TSA Report Finds

Why It Matters

The decline threatens Australia’s last on‑shore tyre manufacturing capability, risking job losses and higher emissions while undermining the circular‑economy agenda.

Key Takeaways

• Retread market share fell from 20% (2017) to 10% (2025)
• Facility count dropped from 61 (2003) to 22 today
• Plants operate at 31‑56% capacity, could serve 55‑80% of market
• Full utilisation could add ~850 jobs, up to 1,000 total
• Imported single‑use tyres up 80% since 2017, driving decline

Pulse Analysis

The Australian retread tyre industry has long been a cornerstone of the nation’s circular‑economy strategy, extending the life of heavy‑vehicle tyres and reducing landfill waste. By reconditioning roughly 390,000 tyres annually, the sector cuts about 16,000 tonnes of waste and 44,500 tonnes of CO₂ equivalent each year. However, a steep erosion of market share—from 20% in 2017 to just 10% in 2025—signals a structural shift that could jeopardize these environmental gains if left unchecked.

Two forces are driving the downturn. First, imported single‑use tyres, priced lower due to economies of scale abroad, have surged 80% in volume since 2017, crowding out domestically retread products. Second, the remaining 22 facilities operate well below their potential, at only 31‑56% of a single‑shift capacity, despite the ability to retread 55‑80% of the market’s heavy‑vehicle tyres. Fully leveraging this capacity could create up to 850 additional direct jobs, expanding the workforce from the current 125 to around 1,000, while also delivering cost savings for transport operators.

Policy intervention is now critical. International examples from the United States and the European Union show that mandatory product‑stewardship schemes, stricter enforcement of design rules, and anti‑dumping measures can protect domestic retread capabilities. TSA’s recommendations—including a national stewardship program and better recognition of waste‑reduction outcomes—aim to revive the sector, safeguard jobs, and reinforce Australia’s circular‑economy targets. Without such support, the country risks losing its last on‑shore tyre manufacturing base, exposing the market to lower‑quality imports and higher environmental costs.