For years, CEAT Sri Lanka has helped keep the country moving, from trucks crossing its highways to motorbikes weaving through busy streets. Initially focused on the commercial segment, the brand has evolved to lead the consumer market with Germanengineered tyres designed for local roads. Today, CEAT Sri Lanka is investing in new R&D capabilities, advanced manufacturing, and sustainability initiatives to meet rising expectations around safety, fuel efficiency, and innovation. In this conversation, Ravi Dadlani, Chief Executive officer and Managing Director of CEAT Kelani Holdings, and Shamal Gunawardene, Chief Operating Officer of CEAT Kelani Holdings, explain how the brand is aligning its legacy with the demands of a faster, smarter, and more discerning tyre market.
CEAT was named Sri Lanka’s Most Valuable Tyre Brand in 2025 with strong brand growth and a Top 6 ranking among the country’s strongest consumer brands. What do you see as the key drivers of this success, and how will you sustain it going forward?
Shamal: It didn’t happen overnight. Years of hard work and continuous product improvement brought us here. Being Sri Lanka’s most valuable tyre brand reflects the quality of our products, strong strategy, and consumer trust. Innovation has driven the brand, but it doesn’t stop there; we must keep improving. We’ve planned investments to stay ahead because you can never rest in this market. Meeting consumer expectations from their vehicles means we’ll continue providing those solutions through our tyres, now and in the future.
Ravi: CEAT was traditionally known for commercial truck and bus tyres. Over time, we expanded into the radial and two-wheeler segments, setting a clear market differentiator. Consumers linked our commercial strength with these new offerings, shifting perceptions and growing trust. We’ve invested in repositioning our car radials with a premium, German-engineered focus, backed by omnichannel campaigns. That’s helped us gain the trust of consumers by building confidence in our products and driving growth across Sri Lanka’s tyre market. CEAT operates in a highly competitive tyre market.
CEAT operates in a highly competitive tyre market. How does the brand differentiate itself in terms of performance, trust, and value beyond price?
Shamal: Our differentiation starts with the product. We stand by our tagline of German-engineered tyres for Sri Lankan roads, backed by deep knowledge of local needs. As a local manufacturer, we know what works best on Sri Lankan roads. Behind the scenes, we test, benchmark, and study usage patterns to ensure our tyres meet expectations. That kind of R&D focus builds trust in our promise to deliver performance beyond just price.
Ravi: While our R&D is based on the international market, we adapt it to suit Sri Lankan needs. For example, local buyers prefer a boxy look over the slimmer round-shoulder style. It’s the same tyre but matched to local expectations, supported by German R&D insights from Frankfurt. We also offer something unique: manufacturer-backed after-sales service and warranty, giving consumers confidence that their tyres will be replaced if needed. With over 550 dealers, our wide network ensures people can access that assurance anywhere in Sri Lanka.
To what extent is CEAT’s brand equity driven by its relationships with automotive brands versus aftermarket consumer perception, and how do these priorities compete or align?
Ravi: We are the clear No.1 choice brand in Sri Lanka’s Original Equipment Manufacturers (OEM) segment with a 95% share across 11 locally assembled brands. This list of brands includes Hyundai, JAC, JMC, DFSK, Mahindra, Micro, Tata, Lanka Ashok Leyland, TVS, Bajaj and Dyno. Typically, about 60–70% of consumers choose the same tyre brand for their first replacement, trusting what originally came with the vehicle. That relationship is key: if OEMs accept our tyres, consumers feel confident in their quality. Our aftermarket strength also reinforces this. Even though large-scale OE manufacturing in Sri Lanka is recent, our strong replacement market has built familiarity, which transfers to OEM trust. People see CEAT as trusted by manufacturers, and that gives them confidence. OEMs do several stringent trials before approving our tyres. All this adds to trust. These elements work together, showing our tyres deliver what consumers want.
What role does local manufacturing play in CEAT’s brand positioning, particularly as cost pressures and import dynamics shift across the region?
Ravi: Although we manufacture locally, our standards match what CEAT produces in any of its international plants. The same approved materials are used, from carbon black to fabric, just like in India or Europe. The only change is natural rubber, 24% of the mix, which we source 100% locally, with Sri Lanka known for some of the world’s best. Our plant meets more than half of the country’s pneumatic tyre demand, making domestic production vital for both the economy and the brand. It supports import substitution, saving foreign exchange, and also gives us flexibility to respond quickly to market shifts. Still, 76% of components are imported, so we have to manage some supply chain risks. Another advantage is backwards integration: supporting 10,000 rubber farmers and keeping revenue within the country. That ties into local livelihoods and reinforces trust that our tyres deliver the same benchmarked quality consumers expect while also benefiting Sri Lanka’s growth.
How is the brand adapting to changing global trends, including digital transformation and fleet digitisation services, which demand different performance characteristics from tyres?
Ravi: Today, we get strong support from CEAT Global, whose scale is enormous. In Sri Lanka, we produce 90 metric tons a day, whereas globally, we make 1,500 metric tons daily. Trends emerging there, like EV tyres and calmer, low-noise, low rolling resistance tyres, are valuable insights for us. For example, approximately 90% of bikes entering Sri Lanka come from India, so we must align with their evolving standards. If those vehicles arrive with new tyre technologies, local buyers will expect the same here at the time of replacement. On top of that, Sri Lanka has more high-end Japanese and Korean vehicles, so we often enhance our products by a few notches for local needs. Globally, CEAT is also aiming higher as it targets exports to developed markets like Europe. That’s why our R&D centre in Frankfurt plays a vital role, sending advanced inputs for tyre development in the region. This knowledge helps us keep pace with global shifts and ensures our tyres meet the expectations of tomorrow’s consumers.
What strategic investments, whether in R&D, plant capability, or distribution, have been made to reinforce CEAT’s brand as both durable and future-ready?
Ravi: We’ve recently committed an investment of approximately $15 million in product quality improvement, benchmarking other premium international brands in quality to raise our standards further. Local consumers today are far more discerning; they care about speed ratings, tyre softness, reliability, mileage, and performance. Even if they don’t explicitly ask for all these details, they expect their tyres to perform at that global benchmark. For instance, they want a tyre that won’t skid if they have to brake in the rain or one that delivers strong mileage like premium brands. If we want to meet those expectations, we must invest in improving our technology, processes, and capabilities. That’s the thinking behind this investment.
What efforts are you making to build a stronger brand narrative around safety, fuel efficiency, or sustainability, which are the factors increasingly influencing B2B and retail buying decisions?
Shamal: Many consumers return for their second or third set of CEAT tyres, reflecting trust in our quality and comfort. We reinforce that through safety-focused R&D in wet braking and handling, plus CSR initiatives like installing safety signage near schools. Ensuring safety is a major responsibility for us. On sustainability, we’re reducing our carbon footprint through ESG audits and investments, for example, Rs475 million in a 2.4 MW rooftop solar plant at our Kelaniya complex, with Kalutara to follow with a 1 MW plant. Fuel-efficient designs also matter, as tyres directly influence consumption. With each new generation of tyres, compounds generally improve factors like mileage and durability, helping extend replacement cycles and reduce waste. That’s why we developed the FUELSMARRT range, which offers enhanced fuel savings, reduced noise and vibration, and better passenger comfort.
Looking ahead, how does CEAT plan to evolve its brand in line with global tyre standards, expectations, and shifts in consumer and fleet behaviour across markets?
Ravi: CEAT is recognised by Brand Finance as the world’s 8th strongest tyre brand, with a presence in 120 countries, including exports to 16 markets from Sri Lanka. That demonstrates our strong global footprint. Looking ahead, our R&D centre in Frankfurt is helping us meet evolving global standards and build a foothold in Europe, where top vehicle brands like Volkswagen, BMW, and more are based. As these leading OEMs trust CEAT, that credibility flows back to Sri Lanka, supporting our expansion into higher-end consumer segments. This global connection strengthens local trust, making our products more appealing. Tyres today use four to five different compounds, from softer sidewalls to harder treads, requiring sophisticated technologies. To keep up, we’re investing in advanced manufacturing capabilities to bring these next-generation tyres to Sri Lanka. Ultimately, consumers expect this level of performance, and the process to deliver it begins in Germany, followed by local trials to ensure we meet rising expectations.
Shamal: Going forward, a significant part of our business will involve fleet owners, who look for more than just price. They prioritise after-sales support, warranty, and cost per kilometre. Their first question is usually, “How many kilometres can this tyre run?” We’re working to build their confidence through reliable products and stronger technical support. There’s also growing interest in smart mobility solutions, like tyre monitoring tools that help reduce downtime. To support this, we’re strengthening our digital platforms for warranty registration and consumer engagement, making it easier to manage long-term tyre care. These steps are part of reimagining our brand experience to match how modern consumers and fleet operators make decisions about their tyres.
Further information about the 100 Most Valuable Brands in Sri Lanka:
Sri Lanka’s Top 100 Most Valuable Brands
Introducing Brand Finance and Sri Lanka’s Most Valuable Brands
Brand Valuation Methodology: Identifying Sri Lanka’s Top 100 Brands