They smoke plenty as they are road tires (assuming you are using road car for your drifting). LFS isn't coded as a drifting sim, so it won't have specially manufactured tires to produce extreme amount of useless smoke.
Though I agree that if you did a burnout in LFS road cars, it doesn't produce a realistic amount of smoke. Eventually in a real car and street tires, smoke does just pour off of the tires like liquid when you get them spinning enough in a burnout.