India’s tyre industry is set for a massive boom, with experts predicting its revenue will skyrocket 12 times to Rs 1.30 lakh crore by 2047. This exciting growth comes from a strong base of original equipment manufacturers (OEMs), surging vehicle exports, and steady demand for replacement tyres, according to a new report released on Tuesday.
The report, a collaboration between the Automotive Tyre Manufacturers Association (ATMA) and PwC India, also forecasts that production volumes will jump nearly four times over the same period. What drives this sharp revenue rise? It’s all about changes in the tyre industry’s revenue mix, a push towards premium products, higher raw material costs, growing exports, the rise of electric vehicles, and new services like tyre management.
Kavan Mukhtyar, Partner and Leader for Automotive at PwC India, sees huge potential in India’s Viksit Bharat 2047 vision. “This journey offers the tyre sector a chance to satisfy domestic customers while ramping up exports, especially for commercial vehicles and passenger vehicles in big markets like the US and EU,” he says. He points to emerging trends in consumer mobility, a shifting global business scene, and sustainability goals as key opportunities for the Indian tyre industry to evolve and achieve sustainable growth through 2047.
Robust sales of passenger vehicles (PV) and two-wheelers (2W), fueled by rising per capita income, will boost OEM tyre demand. Meanwhile, commercial vehicle (CV) sales are getting a lift from massive infrastructure spending and consumer needs. Greater people mobility and freight movement will keep replacement tyre demand strong.
Exports will accelerate thanks to smart strategies like innovations tailored to specific markets, better access via new free trade agreements, cost advantages, and stronger branding in PV and CV segments. However, challenges like steady supply of natural rubber at competitive prices, evolving regulations, and non-tariff barriers could slow things down if not addressed.
Arun Mammen, Chairman of ATMA, is optimistic. “The Indian tyre industry is on the brink of a big transformation, powered by fast economic growth, changing mobility patterns, and a bigger global presence,” he notes. “Premiumisation, sustainable innovations, tech focus, and exports will fuel this. As we aim for Viksit Bharat 2047, the tyre sector will help India’s automotive dreams come true, building a tough and forward-looking industry.”
On the services front, more awareness about tyre health and demand for TPMS-ready fleets (tyre pressure monitoring systems) will spur needs for professional tyre checks, advice, and fleet management solutions. Tyre companies must tackle data security, regulations, and scaling costs to unlock this potential, the report warns.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
