New Delhi: Backed by a strong OEM base, rising vehicle exports, and robust replacement demand, India’s tyre industry revenue is projected to grow 12 times, touching ₹1.30 lakh crore by 2047, according to a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India. Production volumes are also expected to rise nearly fourfold during the same period.
The sharp surge in revenues will be driven by premiumisation, higher raw material costs, increased export share, electrification, and the industry’s shift towards service-based models.
“India’s journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre sector—not only to cater to domestic aspirations but also to scale up exports across key global markets like the US and EU,” said Kavan Mukhtyar, Partner and Automotive Leader at PwC India.
Emerging mobility trends, sustainability imperatives, and evolving consumer preferences will further accelerate this transformation, he added.
Key Growth Drivers
- Rising passenger vehicle (PV) and two-wheeler (2W) sales, fueled by higher per capita income.
- Strong demand for commercial vehicle (CV) tyres, supported by infrastructure spending and consumption growth.
- Expansion in replacement tyre demand due to higher freight movement and increased people mobility.
- Export growth aided by new FTAs, cost competitiveness, brand positioning, and market-specific innovations.
Challenges Ahead
The report highlighted key hurdles, including the need for steady, cost-competitive natural rubber supplies, evolving regulations, and non-tariff trade barriers.
Arun Mammen, Chairman of ATMA, noted: “The Indian tyre industry is on the cusp of a transformational journey driven by rapid economic growth, premiumisation, sustainability-led innovation, and technology adoption. As we advance towards Viksit Bharat 2047, the sector will play a pivotal role in supporting India’s automotive ambitions.”
Rising Role of Services
Growing awareness of tyre health and customer demand for TPMS-ready fleets are expected to boost services like tyre advisory, professional fleet management, and periodic maintenance. However, tyre companies will need cost-effective solutions to navigate data security and regulatory challenges to unlock the full potential of servitisation, the report said.
With inputs from IANS