India’s tyre exports recorded a significant 9% growth year-on-year in FY25, reaching a value of ₹25,051 crore (US$ 2.93 billion), according to data released by the Automotive Tyre Manufacturers Association (ATMA). This performance is particularly noteworthy given the ongoing global trade uncertainties and supply chain disruptions affecting several industries worldwide.

The tyre industry in India continues to stand out as one of the few manufacturing sectors with a high export-to-turnover ratio, reinforcing its global competitiveness. The total estimated annual turnover of the Indian tyre sector is pegged at ₹99,942 crore (US$ 11.67 billion). The sector’s resilience in a challenging global environment illustrates both robust domestic capabilities and rising global demand for Indian tyres.

Key Drivers of Export Growth

According to ATMA, Farm and Off-the-Road (OTR) tyres accounted for nearly 60% of India’s total tyre export value, reflecting strong international demand for these specialised categories. India exported tyres to more than 170 countries, with the United States emerging as the largest export destination, accounting for 17% of the total value. Other major markets include Germany (6%), Brazil (5%), the United Arab Emirates (UAE) (4%), and France (4%).

This diverse export base has been essential in cushioning the impact of global disruptions, such as shipping delays, inflationary cost pressures, and shifting regulatory norms. Indian manufacturers have managed to adapt production and logistics strategies effectively, allowing them to fulfil demand from both traditional and emerging markets.

Investments Bolstering Growth

Over the past four years, the Indian tyre industry has witnessed investments worth ₹27,000 crore (US$ 3.15 billion) across both greenfield and brownfield manufacturing projects. This massive capital inflow has been instrumental in expanding production capacity, modernising technology, and aligning products with international standards.

Mr. Arun Mammen, Chairman of ATMA, noted that this level of investment reflects growing industry confidence in India’s economic and manufacturing trajectory. The sector’s ability to attract such robust funding, despite macroeconomic headwinds, highlights its strategic importance to the Make in India vision and to India’s broader export goals.

Dependence on Natural Rubber: A Persistent Challenge

One of the key constraints faced by the tyre industry is its heavy reliance on natural rubber, which accounts for 60% of the total rubber consumption in Indian tyre manufacturing. This is in contrast to global trends, where synthetic rubber dominates due to availability and cost advantages. India currently imports about 40% of its natural rubber requirements, a situation that the industry considers unsustainable in the long term.

With natural rubber demand projected to reach 20 lakh tonnes by 2030, addressing the domestic supply gap has become a strategic necessity. To that end, ATMA has launched the Indian Natural Rubber Operations for Assisted Development (INROAD) project in partnership with the Ministry of Commerce and Industry and the Rubber Board of India.

Project INROAD: A Transformational Initiative

The INROAD project, backed by ₹1,100 crore (US$ 128.4 million) from four major ATMA member companies, aims to expand rubber cultivation across 2 lakh hectares of land in India. In addition to increasing acreage, the project also focuses on enhancing rural infrastructure, improving supply chain logistics, and upgrading the skill set of farmers in rubber-growing regions.

The initiative is also expected to generate employment, improve rural incomes, and reduce the import burden significantly over the next decade. By strengthening backward integration, INROAD could usher in long-term stability for the tyre industry, improve cost efficiency, and bolster export competitiveness further.

While this project is a step in the right direction, ATMA officials have reiterated the need for continued policy intervention and coordination with central and state governments. Ensuring timely subsidies, availability of quality planting material, training programs, and climate-resilient cultivation techniques are considered critical to the success of this large-scale transformation.

India's Competitive Edge in Tyre Manufacturing

The consistent performance of India’s tyre exports, despite global headwinds, is a testament to the sector’s manufacturing excellence, diversified export portfolio, and its ability to adapt to evolving market dynamics. Key factors contributing to this sustained growth include:

• Strong R&D infrastructure and quality benchmarking with global standards

• Cost-competitive production enabled by economies of scale

• A growing domestic demand base that offers scale advantages

• Access to skilled workforce and robust supply chain systems

Moreover, India’s geographical positioning enables efficient shipping routes to Asia, Europe, the Middle East, and the Americas, supporting faster delivery and reduced logistics costs.

Policy Support and Future Outlook

The Ministry of Commerce and Industry has played a key role in supporting tyre exports through export promotion incentives, infrastructure upgrades, and trade facilitation measures. Continued policy engagement will be essential to sustaining momentum, particularly as international competition intensifies and environmental regulations evolve.

Looking ahead, the global market for tyres is expected to continue growing, driven by increasing vehicle ownership in emerging economies, growing agricultural mechanisation, and a revival in construction and mining sectors. India is well-positioned to expand its market share globally, provided it continues to address raw material bottlenecks and innovate product offerings.

The tyre sector’s success also aligns with the government’s broader goal of making India a leading global manufacturing hub. With exports crossing ₹25,000 crore and ongoing efforts to improve backward integration, India’s tyre industry is poised to enter a new phase of sustainable, export-driven growth.

In conclusion, India’s tyre exports rising by 9% to ₹25,051 crore in FY25 reflects not only the industry’s inherent strength but also the success of recent investments, strategic policy interventions, and a commitment to global standards. With initiatives like Project INROAD addressing long-standing supply challenges, and a diversified export footprint across 170+ countries, the Indian tyre industry is firmly on the path to becoming a global powerhouse in the manufacturing sector.

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