Pirelli tyres may be restricted in the US

Recently, the US Department of Commerce issued a warning. Vehicles equipped with select Pirelli tyres with advanced CyberTyre technology may soon face restrictions in the United States. The move by the U.S. Department of Commerce stems  concerns about national security risks associated with foreign ownership and data collection features embedded in modern automotive components.

At the heart of the matter is Pirelli's CyberTyre system, a high-tech innovation that uses embedded sensors to collect and transmit real-time data on tyre pressure, temperature, load and road conditions. This data is integrated into the vehicle's electronic systems to improve safety and performance through smarter driver alerts and vehicle responses.

However, due to Pirelli's ownership structure, red flags have been raised by the US government. Because Pirelli's largest shareholder is the Chinese state-owned Sinochem Group (which owns 37 per cent of the company), the US is concerned that data collected by the CyberTyre system could be accessed or influenced by foreign entities, posing a potential threat to US cybersecurity and consumer privacy.

In a letter dated 25 April, the U.S. Department of Commerce's Bureau of Industry and Security advised that vehicles equipped with CyberTyre technology may require special authorisation to be sold in the United States. The proposal is part of a broader crackdown on China-related technology in modernised auto parts, with the new rules coming into effect over the next few years. The software restrictions would begin with the 2027 model year, followed by hardware restrictions in 2029.

While no formal ban has yet been issued, the move suggests that automakers planning to use Pirelli's smart tyre system in future models will face significant hurdles. Automakers may need to seek exemptions or find alternative suppliers to comply with changing U.S. regulations.

Pirelli has not yet publicly responded to the announcement, but the company is reportedly in the midst of internal discussions and governance disputes with Sinochem over the direction of its global business strategy.

The situation highlights the growing tension between technological innovation and national security, especially as vehicles become increasingly connected and data-driven.