Robust Momentum in Indian Tyre Export Continues: Exports Cross ₹25,000 Crore in FY25

KOCHI:
The Indian Tyre Industry has shown resilience in export performance in FY 2024–25 despite significant headwinds ranging from trade policy uncertainties and geopolitical risks to global supply chain disruptions, states Automotive Tyre Manufacturers Association (ATMA).

Tyre exports from India surged by 9% year-on-year, reaching ₹25,051 crore compared to ₹23,073 crore in the previous fiscal, as per data released by the Ministry of Commerce.

With an estimated annual turnover of ₹1 lakh crore and exports exceeding ₹25,000 crore, the Indian tyre industry stands out as one of the few manufacturing sectors in the country with a high export-to-turnover ratio.

The growth in exports has been driven by sustained investments in capacity, robust manufacturing activity, and focused R&D. “The tyre industry has exhibited remarkable resilience and growth post the COVID-19 downturn. Over the past 3–4 years, tyre manufacturers have invested approximately ₹27,000 crore across greenfield and brownfield projects, underscoring their strong belief in India’s economic trajectory,” said Arun Mammen, Chairman, ATMA.

According to a PwC Vision document, the Indian Tyre Industry is expected to grow at a CAGR of 11-12% until 2047. Rising domestic demand, increasing export potential, and ongoing technological advancements are key drivers of this sustained momentum. “While global macroeconomic challenges persist, the Indian tyre industry is built on strong fundamentals. With a growing domestic market, we are better insulated against global shocks,” Mammen added.

Indian tyres are exported to over 170 countries, with significant presence in the United States, European Union, Latin America, and Southeast Asia. The US remains the top export destination, accounting for 17% of India’s tyre exports by value, followed by Germany (6%), Brazil (5%), UAE (4%), and France (4%).

Segment-wise, Farm/Agricultural Tyres and Off-the-Road (OTR) Tyres dominate, together comprising nearly 60% of the total tyre export value.

Commenting on recent trade developments, Mammen said, “The industry is closely monitoring the situation regarding potential US tariffs. We strongly advocate fair trade practices and a level playing field. At the same time, the Indian tyre industry remains committed to diversifying its export markets and sustaining growth.”

The international standing of Indian tyre companies has also strengthened. Apollo Tyres, CEAT, JK Tyre, and MRF were recently ranked among the Top 15 Strongest Tyre Brands globally by Brand Finance—testament to their growing influence and reputation in global markets.

India has significant potential to further enhance tyre exports through competitive pricing, quality assurance, branding initiatives, and greater alignment with international certifications and standards. However, ensuring adequate access to Natural Rubber (NR) remains a critical prerequisite for scaling up production and exports.

Currently, nearly 40% of the industry’s NR requirement is met through imports due to limited domestic availability. Most of the domestically produced NR is absorbed by domestic consumers, leaving negligible volumes for export.

To address this gap, the tyre industry, under the guidance of the Ministry of Commerce & Industry, has partnered with the Rubber Board of India to launch Project INROAD. Backed by ₹1,100 crore in funding from four leading ATMA member companies, the project aims to bring 2 lakh hectares under NR plantation while also providing infrastructure and skilling support in India’s rubber-growing regions.

“Despite these efforts, much more needs to be done to meet future NR demand, which is expected to touch 20 lakh tonnes by 2030,” said Mr. Mammen. “India’s tyre industry is unique in its heavy reliance on Natural Rubber, which is a sustainable material. While globally, Synthetic Rubber makes up 60% of tyre industry consumption, in India, 60% of rubber used is Natural Rubber.”

According to the International Rubber Study Group (IRSG), India recorded the highest CAGR of 6.15% in NR demand between 2020 and 2024 among all NR-consuming and -producing nations.

“There is an urgent need to accelerate domestic NR production through focused interventions to meet the rising demand,” Mammen concluded.