India tyre exports reach record high in 2025
India's tyre industry has achieved a historic milestone, with exports reaching 27.3 million units in 2025, marking a 12% year-on-year increase. The surge reflects growing global demand for affordable Indian-made tyres and improved domestic manufacturing capacity.
What Happened
India's tyre manufacturers exported tyres worth $8.4 billion in the 2024-25 fiscal year, according to the Automotive Tyre Manufacturers Association (ATMA). Leading manufacturers including MRF, Bridgestone India, Apollo Tyres, CEAT, and JK Tyre collectively contributed to this record-breaking performance.
The growth has been driven by several factors. Increased capacity expansion at manufacturing facilities, particularly in Gujarat and Tamil Nadu, has enabled companies to produce higher volumes. Additionally, competitive pricing and improved quality certifications have helped Indian manufacturers secure larger contracts with international OEMs and aftermarket distributors across North America, Europe, and Southeast Asia.
Apollo Tyres and MRF alone accounted for over 40% of total exports, with both companies expanding their presence in premium segments. CEAT also reported significant growth in export volumes, particularly in two-wheeler and commercial vehicle tyres, which represent 60% of India's tyre exports.
Geographically, exports to North America increased by 18%, while European demand grew by 9%. India maintained its position as a preferred supplier to Southeast Asian nations, particularly Thailand, Vietnam, and Indonesia, where cost advantages remain substantial.
Impact on Indian Consumers
| Impact Area | Effect on Consumers |
|---|---|
| Price | Stable to slightly down – Increased exports reduce inventory pressure, allowing domestic manufacturers to maintain competitive domestic pricing without margin compression |
| Availability | Improved – Enhanced production capacity ensures better availability of tyre variants across retail channels nationwide |
| Quality | Enhanced – Global export standards force manufacturers to maintain stricter quality controls, benefiting domestic consumers |
Expert Opinion
"This export milestone demonstrates India's strengthening position in the global tyre supply chain," said Amit Kaushik, Managing Director of ATMA. "However, manufacturers must balance export commitments with domestic market demands to ensure continued growth."
Rohan Banerjee, automotive analyst at Crisil, noted that the trend reflects structural advantages: "India's labour-cost competitiveness and manufacturing expertise provide sustainable export momentum. We expect the trend to continue through 2026, provided global economic conditions remain stable."
Industry experts cautioned that geopolitical uncertainties and potential trade policy changes could impact growth trajectories in coming quarters.
What This Means for You
As an Indian car owner, the strong export performance offers tangible benefits. Increased production capacity translates to better tyre availability and wider product range choices in domestic markets. Manufacturers investing in capacity expansion to support exports simultaneously improve domestic supply chains. However, ensure you purchase from authorized dealers to guarantee genuine products, as counterfeit tyres occasionally enter the market during supply fluctuations.
Related Developments
• Raw material costs rise: Natural rubber prices increased 15% year-on-year, partially offsetting export revenue gains for manufacturers
• Electric vehicle impact: Tyre manufacturers report growing demand for EV-specific tyres from international customers, driving R&D investments
• Sustainability push: Export contracts increasingly require eco-friendly manufacturing certifications, prompting domestic producers to upgrade facilities