India Tyre Market Overview: USD 12.84 Billion, Expected to Reach USD 29.16 Billion

The India tyre market has been experiencing remarkable growth, driven by increasing vehicle ownership, infrastructure development, and advancements in tyre technology. According to the TechSci Research report, the market was valued at USD 12.84 billion in 2024 and is expected to reach USD 29.16 billion by 2030, growing at a CAGR of 8.21%.

This expansion is fueled by rising demand across passenger vehicles, commercial vehicles, and two-wheeler segments, alongside the increasing penetration of global tyre brands in India.

Additionally, government policies promoting domestic manufacturing and foreign direct investment (FDI) in the automotive sector have further bolstered market expansion. This report provides an in-depth analysis of the India tyre market, including key trends, growth drivers, challenges, and future opportunities.

India Tyre Market Overview

Growth Drivers

The expansion of the automotive industry in India has led to a surge in vehicle sales, increasing the demand for tyres across all segments. As disposable income levels rise and financing options become more accessible, more consumers are purchasing personal and commercial vehicles, thereby driving tyre sales. Additionally, the rise of ride-hailing services and the growth of logistics and e-commerce industries have contributed to increased tyre demand in both urban and semi-urban areas.

Government initiatives to enhance road connectivity, including highway and expressway construction, have boosted the demand for durable and high-performance tyres. The Bharatmala and Sagarmala projects, aimed at improving road and port connectivity, are expected to further drive tyre consumption in commercial vehicle segments.

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Technological advancements are also shaping the industry. Innovations such as radial tyres, tubeless tyres, and eco-friendly manufacturing processes are increasing efficiency and reducing costs. The increasing adoption of digital manufacturing and automation in tyre production ensures better quality and enhances overall performance. Meanwhile, the rise of online platforms has made tyres more accessible to consumers, enhancing market penetration. E-commerce players are offering competitive pricing, doorstep delivery, and installation services, making it easier for consumers to purchase replacement tyres online.

India Tyre Market Segmentation

The India tyre market is segmented based on:

Vehicle Type: Passenger cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (MHCVs), Two-wheelers, Three-wheelers, and Off-the-Road (OTR) vehicles.

Demand Category: Original Equipment Manufacturer (OEM) and Replacement.

Tyre Construction Type: Radial and Bias tyres.

Region: North, South, East, and West India.

Passenger cars represent the largest segment, driven by increasing personal vehicle ownership and a shift towards premium and high-performance tyres. LCVs are experiencing growth due to the expansion of last-mile delivery services, while MHCVs remain essential for logistics and freight transportation. Two-wheelers are the fastest-growing segment, supported by rising urbanization and increasing disposable income. Three-wheelers continue to be widely used for last-mile connectivity and public transportation, whereas OTR vehicles cater to industries such as mining, agriculture, and construction.

The OEM segment dominates due to the expansion of the automotive industry and long-term supplier agreements with tyre manufacturers. New vehicle production directly boosts OEM tyre demand, as vehicle manufacturers collaborate with tyre companies to develop custom solutions that enhance safety, efficiency, and driving comfort. The replacement segment is also growing rapidly, as consumers seek high-performance and durable products. Factors such as frequent vehicle usage, poor road conditions, and the availability of high-quality aftermarket products contribute to this segment’s expansion.

Tyre construction types include radial and bias tyres. Radial tyres, known for their improved fuel efficiency, better traction, and longer lifespan, are becoming increasingly popular, especially in passenger and commercial vehicle segments. Their adoption is further supported by improved road infrastructure and growing consumer awareness of their benefits. Bias tyres, although gradually being replaced by radial alternatives, still hold significance in off-road applications due to their strong sidewalls and better load-bearing capacity.

Geographically, the market is divided into:

 

North India: Leads in market share due to high vehicle sales, strong commercial transport networks, and industrial activities.

South India: Houses several major tyre manufacturers and has a strong presence in the two-wheeler and passenger car markets.

East India: Witnessing increased demand due to road infrastructure improvements and expanding commercial activities.

West India: Serves as a major trade and manufacturing hub, with a significant share in both OEM and replacement markets.

Key Trends in the India Tyre Market

Fuel efficiency and performance: Consumers are increasingly opting for tyres that improve mileage and reduce rolling resistance.

Radial tyre adoption: Growing awareness and improved road infrastructure are driving a shift from bias to radial tyres.

Enhanced safety features: Demand for tyres with better traction, puncture resistance, and grip is increasing.

Eco-friendly initiatives: Manufacturers are investing in sustainable materials, energy-efficient production, and tyre recycling.

Expanding distribution networks: Companies are strengthening supply chains, improving accessibility in both urban and rural areas.

Challenges in the India Tyre Market

Despite strong growth, the India tyre market faces several challenges:

Fluctuating raw material prices: The cost of natural rubber, synthetic rubber, and crude oil-based materials affects production expenses.

Regulatory and environmental compliance: Stricter fuel efficiency norms and sustainability policies require continuous investment in new technologies.

Economic volatility: Inflation, economic slowdowns, and changes in consumer spending patterns influence market demand.

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Competitive Landscape of India Tyre Market 

The India tyre market is highly competitive, with major players focusing on innovation, product diversification, and expansion strategies to maintain their market position. Some of the leading companies include:

MRF LIMITED

Apollo Tyres Ltd

JK Tyre & Industries Ltd

CEAT Limited

Balkrishna Industries Limited (BKT)

Goodyear India Limited

Continental Tyres India Pvt Ltd.

Yokohama India Pvt. Ltd

Hankook Tire & Technology Co., Ltd

TVS Srichakra Limited

These companies invest significantly in research and development to enhance product performance, durability, and sustainability.

Recent Developments

In April 2024, Apollo Tyres collaborated with NATRAX to develop India’s first dedicated test track for electric vehicle (EV) tyre validation. This facility plays a crucial role in evaluating the performance and durability of tyres used in EVs, particularly for regenerative braking and rapid acceleration. The initiative also aims to support fuel-efficient tyre development under the Star Label program, further promoting sustainability in the industry.

Future Outlook

Leading tyre manufacturers are increasing their R&D investments to develop innovative solutions that enhance vehicle performance, safety, and durability. Smart tyres with embedded sensors for real-time monitoring, predictive maintenance, and self-healing capabilities are expected to gain traction in the coming years. Additionally, tyre manufacturers are exploring partnerships with technology firms to integrate artificial intelligence and IoT-enabled solutions into their products.

With the continuous rise in vehicle sales, infrastructure projects, and technological advancements, the India tyre market is poised for sustained growth. Expanding manufacturing facilities and strategic partnerships with global players will further drive market development. The industry is expected to remain a key player in supporting India’s transportation needs and contributing to the country’s economic growth.

Conclusion

The India tyre market is evolving rapidly, supported by technological advancements, increasing consumer demand, and government initiatives.

While challenges such as fluctuating raw material prices and regulatory compliance exist, the market's overall growth trajectory remains positive.

As industry players continue to innovate and expand, the sector is expected to play a crucial role in India's economic development and automotive industry expansion.

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