"The resurgence witnessed in tyre exports in the second half of the year despite a tough external environment is a testament to the resilience of the Indian Tyre Industry to ride through challenging times and carve a niche for itself. It also points to the compelling value proposition offered by Indian tyre manufacturers on quality which is being appreciated globally," said Arnab Banerjee, Chairman of the Automotive Tyre Manufacturers’ Association (ATMA).
With a turnover of approximately INR 90,000 crore and exports exceeding INR 23,000 crore, the Indian Tyre Industry is among the few manufacturing sectors with a high export-to-turnover ratio. Presently, Indian tyres are exported to over 170 countries worldwide. Innovations such as eco-friendly and fuel-efficient tyres have found particular favor with global consumers.
Despite numerous domestic and external challenges, tyre exports have nearly doubled over the past four years (FY20-FY24). The figures jumped from INR 12,844 crore in FY20 to INR 23,073 crore in FY24.
Indian manufactured tyres are well-received in advanced markets like the US and EU nations. The US remains the largest market, accounting for 18% of total tyre exports from India in FY24. The top five export markets include the US, Germany, Brazil, France, the Netherlands, Italy, and the UAE.
Improving economic conditions worldwide present a unique opportunity for Indian tyre manufacturers. The industry has the potential to significantly boost exports in the next 3-4 years, thereby reinforcing India’s position as a key player in the global tyre market. However, certain challenges, especially in accessing Natural Rubber (NR), need to be addressed. Tyre manufacturers must comply with pre-import conditions for NR imports against tyre export obligations, which can restrict operations and impact export performance.
The export obligation period, which was reduced from 18 to 6 months, needs to be restored to its original duration. This timeframe reduction has complicated the industry’s access to a raw material that is in short supply domestically.
According to ATMA, these restrictions have not benefited NR producers but have adversely affected NR consumers, including both tyre and non-tyre sectors. These limitations have particularly inhibited the export of rubber goods from India.
On the flip side, increased exports will benefit the entire rubber value chain, including rubber growers, as the Tyre Industry accounts for over 70% of NR consumption in the country.
Indian Tyre Industry has invested an estimated INR 23,000 crore in greenfield and brownfield capacities in the past 3-4 years. This investment ensures the industry is ahead of the demand curve, meeting both domestic and export requirements. Furthermore, the tyre needs of OEMs, including tyres for electric vehicles (EVs), are being fully met by the Indian Tyre Industry.
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