Indian Tyre Exports Cross ₹25,000 Crore in FY25, Industry Maintains Strong Global Momentum

The Indian tyre industry has continued its robust export performance in FY2024–25, registering a 9% year-on-year growth in tyre exports, which surged to ₹25,051 crore from ₹23,073 crore the previous fiscal, according to data from the Ministry of Commerce.

The Automotive Tyre Manufacturers Association (ATMA) noted that the sector’s resilience amid global trade policy uncertainties, geopolitical tensions, and supply chain disruptions highlights the industry's growing competitiveness and export-readiness.

With a total estimated turnover of ₹1 lakh crore, the tyre industry has emerged as one of the few Indian manufacturing sectors with a high export-to-turnover ratio. Exports now account for over 25% of the sector’s revenue, reflecting its strong international integration.

Key drivers behind the export growth include sustained investments in manufacturing capacity, a surge in R&D activity, and strategic diversification. "The tyre industry has exhibited remarkable resilience post-COVID. In the last 3–4 years, manufacturers have invested around ₹27,000 crore in greenfield and brownfield projects, reflecting confidence in India’s economic trajectory,” said ATMA Chairman Arun Mammen.

According to a PwC Vision 2047 document, the Indian tyre sector is expected to grow at a CAGR of 11-12%, powered by expanding domestic demand, technological innovation, and growing global market share.

Indian tyres are now exported to over 170 countries, with the United States accounting for 17% of export value, followed by Germany (6%), Brazil (5%), the UAE (4%), and France (4%). Farm and Off-the-Road (OTR) tyres dominate India’s export basket, together contributing nearly 60% of total export value.

Even as the industry monitors potential tariff actions by the US, it remains committed to diversifying export destinations. “We strongly advocate for fair trade and a level playing field. At the same time, we're expanding into new markets to sustain growth,” Mammen said.

Global recognition for Indian tyre manufacturers is on the rise. Four Indian brands—Apollo Tyres, CEAT, JK Tyre, and MRF—were recently ranked among the world’s Top 15 Strongest Tyre Brands by Brand Finance.

Despite this momentum, access to Natural Rubber (NR), a critical raw material, poses a major challenge. India currently imports around 40% of its NR requirement due to limited domestic availability. To address this, the industry, in collaboration with the Ministry of Commerce & Industry and the Rubber Board of India, has launched Project INROAD. With an investment of ₹1,100 crore by four ATMA member companies, the initiative aims to develop 2 lakh hectares of NR plantations, alongside infrastructure and skill development support in rubber-growing regions.

“The demand for NR in India is projected to reach 20 lakh tonnes by 2030. While global tyre manufacturing is dominated by Synthetic Rubber, India’s tyre industry still relies on Natural Rubber for 60% of its production, making it both a sustainability strength and a supply challenge,” Mammen added.

As per the International Rubber Study Group (IRSG), India posted the highest CAGR of 6.15% in NR demand from 2020 to 2024 among all NR-producing and consuming nations, underlining the urgency of boosting domestic NR production.

Industry leaders are calling for accelerated policy interventions to bridge the raw material gap and secure long-term growth prospects in global markets.