India's Tyre Exports Hit Record High in FY26

Indian tyre exports reached an all-time high of ₹27,312 crore in FY2025-26, a 9% increase over the ₹25,057 crore recorded in the previous fiscal, according to data released by the Ministry of Commerce. The figure marks the second successive year of 9% growth, coming amid elevated logistics costs, supply chain disruptions, and broader global economic uncertainty.

The United States remained the single largest market, accounting for 15% of export value at ₹4,082 crore. That share, however, declined from 17% in the prior year after the US administration raised tariffs on Indian tyre imports from 25% to 50% in August 2025. A subsequent reduction to 18% in February 2026 provided some relief to exporters heading into the final months of the fiscal year.

Beyond the US, Germany (7%), Italy (5%), Brazil (5%), and France (4%) featured among the top export destinations, reflecting continued penetration of developed markets. Industry body ATMA attributed the sustained performance to market diversification, cost optimisation, and policy support at the national level.

Over the past four to five years, tyre manufacturers have invested approximately ₹30,000 crore in greenfield and brownfield capacity expansion. The industry's estimated annual turnover stands at around ₹1 lakh crore, with exports now accounting for more than one-fourth of total industry output.

Ongoing geopolitical developments, including the West Asia crisis, continue to weigh on energy costs and supply chain stability. However, ATMA expressed optimism that advancing trade agreements and India's deeper integration into global value chains would support further export growth in the years ahead.