India Tyre Market: From USD [12.84 Billion] to USD [29.16 Billion] by [2030]

The India tyre market is a vital segment of the automotive and transportation industry, reflecting the country’s rapid economic development and growing vehicle ownership.

According to the TechSci Research report titled "India Tyre Market- By Region, Competition, Forecast & Opportunities, 2020-2030F," the market was valued at USD 12.84 billion in 2024 and is projected to reach USD 29.16 billion by 2030, growing at a CAGR of 8.21%. This robust growth is driven by several key factors, including infrastructure development, rising vehicle sales, evolving consumer preferences, and technological advancements in tyre manufacturing.

This report delves into the various aspects of the India tyre market, examining market drivers, challenges, emerging trends, and major developments that are shaping the industry.

India Tyre Market Overview

Key Drivers of Growth

The India tyre market’s growth is fueled by several key drivers:

1. Increasing Vehicle Ownership
   India’s expanding middle class and improving economic conditions have led to a surge in vehicle ownership. This trend has increased the demand for tyres across various vehicle categories, including passenger cars, two-wheelers, and commercial vehicles.

2. Infrastructure Development
   The Indian government’s emphasis on infrastructure development—such as building highways, expressways, and rural road networks—has significantly boosted tyre demand. Tyres that can perform well under different road conditions, including rough and uneven surfaces, are in high demand.

3. Technological Advancements
   Innovations in tyre manufacturing, such as the growing adoption of radial tyres, which offer better fuel efficiency, durability, and longer lifespan compared to traditional bias-ply tyres, are transforming the market. Advanced features like reduced rolling resistance, enhanced traction, and improved safety are also influencing consumer choices.

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India Tyre Market Segmentations

The India tyre market is segmented by:

• Vehicle Type: Passenger cars, two-wheelers, commercial vehicles, and off-the-road (OTR) vehicles.
• Demand Category: Original Equipment Manufacturer (OEM) and Replacement.
• Tyre Construction Type: Radial and Bias-ply tyres.
• Region: North, South, East, and West India.

Vehicle Type Analysis

Passenger Cars

The passenger car segment accounts for a significant share of the market due to the rising adoption of personal vehicles for daily commuting. The shift towards high-performance and fuel-efficient tyres is driving growth in this category.

Two-Wheelers

India’s two-wheeler market is one of the largest in the world, and the demand for two-wheeler tyres is proportionally high. The increasing use of motorcycles for last-mile delivery services is further propelling tyre sales in this segment.

Commercial Vehicles

Commercial vehicle tyre demand is closely tied to the transportation and logistics sector. The rise of e-commerce and infrastructure projects has spurred the need for durable and high-performance tyres for trucks and buses.

Off-the-Road (OTR) Tyres

The OTR tyre segment caters to sectors such as agriculture, mining, and construction. The growth of these industries is driving demand for specialised OTR tyres that can withstand tough working conditions.

Demand Category Analysis

Original Equipment Manufacturer (OEM) Segment

The OEM segment dominates the India tyre market due to its close integration with the automotive industry. OEMs prefer established tyre manufacturers for their proven quality, long-term reliability, and ability to meet specific performance requirements. Key factors contributing to the dominance of OEMs include:

• Long-term contracts between vehicle manufacturers and tyre companies.
• Tailored tyre solutions to enhance vehicle performance.
• Economies of scale that offer cost advantages.

Replacement Tyre Segment

The replacement tyre market is growing steadily as vehicle owners seek to maintain and enhance the performance of their vehicles. The increasing awareness of safety and tyre maintenance among consumers is driving this segment’s growth.

Technological Advancements in the India Tyre Market

• Radial Tyre Technology: Radial tyres are gaining popularity due to their superior performance in terms of fuel efficiency, comfort, and durability. They are particularly preferred for passenger cars and heavy commercial vehicles.
• Eco-Friendly tyres: As environmental concerns grow, tyre manufacturers are focusing on sustainable solutions. Eco-friendly tyres made from recycled materials and bio-based rubber compounds are gaining traction in the market.
• Smart tyres: The introduction of smart tyre technology, featuring embedded sensors to monitor tyre pressure, temperature, and wear, is expected to revolutionise the market. These tyres improve safety and reduce maintenance costs for vehicle owners.

Recent Developments in the India Tyre Market

Several key developments have taken place in the India tyre market:

1. Apollo Tyres and NATRAX Collaboration (April 2024)
   Apollo Tyres collaborated with NATRAX to establish India’s first dedicated test track for electric vehicle (EV) tyre validation. This facility aims to test the cut and chip resistance of EV tyres, ensuring durability and performance under high-stress conditions like regenerative braking.

2. Bridgestone’s Launch of TURANZA 6i Tyre (April 2024)
   Bridgestone introduced the TURANZA 6i tyre for premium vehicles, incorporating ENLITEN technology to offer enhanced comfort, reduced noise, and improved durability for Indian road conditions.

3. Yokohama Rubber’s Expansion (February 2023)
   Yokohama Rubber announced an investment of USD 82 million to expand its passenger car tyre production in India. This expansion will increase production capacity to 4.5 million units annually at its Visakhapatnam plant.

Competitive Landscape 

The Indian tyre market is highly competitive, with several major players striving to capture market share through product innovation, strategic collaborations, and expanded distribution networks.

Major Players in the India Tyre Market

1. MRF Limited
2. Apollo Tyres Ltd
3. JK Tyre & Industries Ltd
4. CEAT Limited
5. Balkrishna Industries Limited (BKT)
6. Goodyear India Limited
7. Continental Tyres India Pvt. Ltd.
8. Yokohama India Pvt. Ltd.
9. Hankook Tire & Technology Co., Ltd
10. TVS Srichakra Limited

Challenges in the India Tyre Market

Fluctuating Raw Material Prices

The cost of raw materials, such as natural rubber and synthetic rubber, can be highly volatile, affecting the production costs and pricing strategies of tyre manufacturers.

Regulatory and Environmental Standards

Increasingly stringent environmental regulations require tyre manufacturers to adopt cleaner production processes and develop eco-friendly products. Compliance with these regulations can be challenging and costly.

Economic Uncertainty and Consumer Behavior

Economic fluctuations and changes in consumer preferences can influence demand patterns. The industry must stay adaptable to these changing dynamics.

Emerging Trends in the India Tyre Market

• Growing Demand for Electric Vehicle (EV) tyres

With the rapid adoption of electric vehicles in India, the demand for specialised EV tyres is on the rise. These tyres need to withstand the unique stresses of EVs, such as increased torque and regenerative braking.

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• Expansion of E-Commerce and Distribution Networks

The growth of e-commerce platforms is improving market accessibility and making it easier for consumers to purchase tyres online. This trend is reshaping the distribution landscape.

• Increased Focus on Safety and Performance

Consumers are becoming more aware of the importance of tyre quality in ensuring vehicle safety and performance. This has led to a growing preference for high-performance and premium tyres.

Future Outlook and Opportunities

The India tyre market is poised for continued growth over the forecast period. Key opportunities include:

1. Investment in R&D and Innovation
   Tyre manufacturers are investing heavily in research and development to create innovative products that meet evolving consumer demands.

2. Sustainability Initiatives
   The shift towards eco-friendly tyre production presents significant growth opportunities for companies that can offer sustainable solutions.

3. Expansion in Rural Markets
   With improved road infrastructure in rural areas, there is a growing market for tyres that can withstand tough driving conditions.

Conclusion

The India tyre market is evolving rapidly, driven by factors such as increasing vehicle ownership, technological advancements, and infrastructure development. Despite challenges like fluctuating raw material prices and regulatory pressures, the market offers significant growth opportunities.

Tyre manufacturers that invest in innovation, sustainability, and customer-centric solutions are well-positioned to thrive in this dynamic market.

As the market continues to grow, it will play a crucial role in supporting India’s transportation sector and contributing to the country’s overall economic development.

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