India’s tyre industry continues to demonstrate robust performance on the export front, with
outbound shipments surpassing ₹25,000 crore in FY25 despite global economic uncertainties,
according to Ministry of Commerce data.
Tyre exports rose 9 per cent year-on-year, climbing to ₹25,051 crore from ₹23,073 crore in the
previous fiscal. As per the Automotive Tyre Manufacturers Association (ATMA), this growth comes
amid persistent challenges such as volatile trade policies, geopolitical tensions, and disruptions in
international supply chains.
With an annual turnover nearing ₹1 lakh crore, the tyre industry ranks among India’s most exportintensive manufacturing sectors. The growth in exports is being attributed to consistent investments
in capacity expansion, improvements in manufacturing efficiency, and increased focus on innovation.
Arun Mammen, Chairman of ATMA, credited the sector’s resilience to its strategic expansion
initiatives post the COVID-19 pandemic. “Over the past 3–4 years, tyre manufacturers have
collectively invested around ₹27,000 crore in both greenfield and brownfield projects. This
underscores our long-term commitment to India’s growth story,” he said.
A recent industry outlook by PwC forecasts that the Indian tyre market will expand at a compound
annual growth rate (CAGR) of 11–12 per cent until 2047, driven by a combination of rising domestic
consumption, strong export demand, and technological advancement.
“Even though global macroeconomic conditions remain uncertain, India’s domestic market offers a
solid buffer, making us more resilient to external shocks,” Mammen added.
Indian tyre manufacturers currently export to over 170 countries, with the United States accounting
for 17 per cent of the total export value—making it the largest market. Other key destinations
include Germany (6 per cent), Brazil (5 per cent), the UAE (4 per cent), and France (4 per cent).
Farm and Off-the-Road (OTR) tyres continue to dominate the export portfolio, together contributing
close to 60 per cent of the total export value.
Commenting on emerging trade policy concerns, particularly the prospect of tariff changes in the US,
Mammen noted that the industry is closely monitoring developments. “We are firm believers in
equitable trade and remain committed to expanding into new markets to reduce dependency,” he
said.
Indian tyre brands have also been gaining international recognition. Four homegrown
manufacturers—Apollo Tyres, CEAT, JK Tyre, and MRF—were recently ranked among the ‘Top 15
Strongest Tyre Brands’ globally by Brand Finance.
Despite the export momentum, industry stakeholders caution that access to natural rubber (NR)
remains a key constraint. With nearly 40 per cent of the industry’s NR needs being met through
imports, limited domestic availability poses a long-term challenge.
To mitigate this, the industry has launched Project INROAD in collaboration with the Rubber Board of
India and under the guidance of the Ministry of Commerce & Industry. Backed by ₹1,100 crore from
four ATMA member companies, the initiative aims to expand rubber plantations by 2 lakh hectares
and enhance infrastructure and skill development in rubber-growing regions.
“Even with these interventions, India will need significantly more NR to meet its projected demand
of 20 lakh tonnes by 2030,” Mammen said. Notably, unlike global trends where synthetic rubber
accounts for the majority of usage, Indian tyre manufacturing relies heavily on natural rubber,
making up 60 per cent of total rubber consumption.
According to the International Rubber Study Group (IRSG), India registered the highest CAGR in NR
demand—6.15 per cent between 2020 and 2024—among all major rubber-producing and consuming
countries.
There’s a pressing need to ramp up domestic NR production through focused, large-scale efforts,”
Mammen emphasised.
