Arnab Banerjee, Chairman of the Automotive Tyre Manufacturers Association (ATMA), stated, "Sustained focus on R&D and development of advanced technology products aided by competitive pricing and branding efforts helped Indian tyre manufacturers drive growth in exports despite a challenging environment. Improving demand prospects in key export destinations and expected monetary easing also helped growth."
The rise in exports highlights the Indian tyre industry's growing integration with global supply chains. Banerjee elaborated, "The globally aligned regulatory environment in the country for manufacturing of tyres also augurs well for increasing the addressable market for Indian manufactured tyres."
Passenger Car Radial tyres lead the game
Passenger Car Radial (PCR) tyres were the largest exported category from India in Q1FY25, followed by Motorcycle and Farm/Agri tyres. Indian tyres are exported to over 170 countries, with the US being the largest export destination, accounting for 17% of the total share. Other significant export destinations included Brazil, Germany, France, and Italy.
Motorcycle tyres experienced the highest growth in export volumes at 38% in Q1FY25, followed by Truck & Bus Radial (TBR) tyres at 31%.
Despite the positive trends, Banerjee noted some potential downsides: "Downside risks to Indian tyre exports continue including global supply chain disruptions, geopolitical risks, the West Asia crisis, and rising shipping costs. However, the industry is committed to meet the challenge through continued focus on manufacturing sustainable tyres with superior performance."
He also emphasised that innovations such as eco-friendly and fuel-efficient tyres have resonated well with global consumers, aiding the industry's growth in exports despite existing challenges.
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