Indian Tyre Industry to Hit ₹13 Lakh Crore by 2047, Driven by Premiumisation and Export Expansion

New Delhi, September 16, 2025 – India’s tyre industry is gearing up for a transformative journey, with revenues projected to multiply twelvefold and touch nearly ₹13 lakh crore by 2047. The forecast comes from a joint study by the Automotive Tyre Manufacturers’ Association (ATMA) and PwC India, highlighting how premiumisation, stronger replacement demand, and export expansion will shape the sector over the next two decades.

Four-Fold Growth in Production

Based on the report, production levels will increase almost fourfold to 2047. The growth will be supported by increasing automobile penetration, strong replacement cycles, and India’s positioning as a global automotive export base. A healthy domestic OEM platform and government efforts to position India as a manufacturing powerhouse will likely further spur capacity growth of the industry.

Drivers of Transformation

The steep top-line growth will be the result of a combination of structural as well as market-related shifts. Premiumisation in consumer trends, increased raw material prices, and value addition through tyre technology are likely to drive margins. Concurrently, export prospects in developed economies like the US and EU will enhance India’s global presence. Megatrends such as electromobility, sustainability adherence, and servitisation models (lease and subscription) will transform the way tyres are manufactured and consumed.

Alignment with Viksit Bharat 2047

The report points out that India’s larger economic vision of Viksit Bharat 2047 presents a historic chance for the tyre sector. Infrastructural expansion, rising vehicle possession, and a surging preference for high-end and long-lasting tyres are estimated to drive OEM and replacement tyre revenues at a compound annual growth rate of 10 percent until FY47. Commercial vehicle tyres, especially, are expected to command the replacement market as India strengthens its logistics and freight capabilities.

Export Market Outlook

Exports are likely to be among the tyre industry’s strongest growth drivers. With effective support in trade policy, sustainability norms, and capacity building, Indian tyre makers can increase their share of world demand. India is estimated to shift from being a largely consumption-oriented tyre market to becoming a globally competitive export center. Recent trade statistics already indicate increasing exports of passenger and truck tyres to Europe and North America, helped by anti-dumping tariffs applied on Chinese tyres in major markets.

Latest Industry Updates

Industry experts point out that market leaders like MRF, Apollo Tyres, and JK Tyre have already started adding capacities to capitalize on future demand. Green tyre technology, smart tyre solutions, and circular economy measures are taking off, with firms looking at recycling and retreading as new sources of revenue. The use of digital solutions for predictive maintenance and fleet management is likely to open up new avenues of growth in the aftermarket for tyres.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations