A Multi-Decade Growth Story
The Indian tyre industry is on track for exponential growth, with revenue expected to multiply 12 times to touch Rs 13 lakh crore by 2047. According to a joint report by the Automotive Tyre Manufacturers’ Association and PwC India, production volume will expand nearly four times during the same period. The growth will be fueled by rising demand from domestic vehicle manufacturers, replacement tyres, and increasing exports.
Key Drivers of Expansion
Several structural changes are shaping the industry’s transformation. Premiumisation is leading the way as consumers shift towards higher-end tyres that deliver better performance and durability. Export demand is rising sharply, with Indian manufacturers gaining traction in global markets such as the US and Europe. The transition to electric vehicles is creating new requirements for advanced tyres, while the servitisation model, which focuses on providing tyre-as-a-service solutions, is expected to add fresh revenue streams. Raw material costs, though rising, are also pushing up the value of overall revenue in the sector.
Viksit Bharat 2047 and the Tyre Opportunity
Industry leaders believe India’s vision of becoming a developed nation by 2047 presents a huge opportunity for tyre manufacturers. Kavan Mukhtyar, Partner and Leader for Automotive at PwC India, said that the industry is well placed not just to meet the aspirations of India’s growing consumer base but also to significantly scale up exports. Commercial and passenger vehicle tyres, in particular, are expected to drive exports across global markets.
Domestic Demand to Remain Strong
Within India, economic expansion, infrastructure spending, and rising consumption are expected to fuel consistent tyre demand. Original equipment manufacturers and the replacement tyre market are projected to grow at a compound annual growth rate of 10 percent through FY47. This ensures that domestic demand will remain a strong backbone even as global exports rise.
A Changing Landscape
The report highlights that emerging consumer trends, new mobility solutions, sustainability imperatives, and a rapidly changing global business environment will continue to reshape the tyre industry. Companies like MRF, Apollo Tyres, and CEAT are expected to play a leading role in adapting to these changes and driving the industry forward.
The Bottom Line
India’s tyre industry is preparing for a transformational journey over the next two decades. With revenue expected to grow 12 times and production expanding fourfold, the sector is set to become a global powerhouse. Premiumisation, electrification, and strong exports will keep Indian manufacturers in the fast lane.
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