India Tyre Market Overview, 2029

The India tyre market has undergone significant evolution, transforming into one of the largest and most dynamic sectors in the automotive industry. Historically, the tyre industry in India began to take shape in the early 20th century, with the establishment of local manufacturing units aimed at meeting domestic demand. Over the decades, this sector has expanded considerably, driven by the rapid growth of the automotive industry and increasing vehicle ownership among the burgeoning middle class. The demand for tyres is closely linked to various factors, including economic growth, urbanization, and government initiatives aimed at enhancing manufacturing capabilities. The Indian government has implemented several policies to promote local production through schemes like "Atmanirbhar Bharat," which encourages self-reliance and aims to position India as a manufacturing hub for automobiles and their components. As a result, there has been a notable increase in vehicle production, including passenger cars, commercial vehicles, and two-wheelers, which collectively drive tyre demand. In addition to traditional vehicles, there is a growing emphasis on electric vehicles (EVs), with expectations that by 2030, 30% of new car sales will be electric. This shift is further supported by advancements in tyre technology, including the development of smart tyres equipped with sensors to enhance performance and safety. The market is also witnessing an increase in demand for Off-The-Road (OTR) tyres due to infrastructure projects and growth in sectors like mining and agriculture. According to the research report "India Tyre Market Overview, 2029," published by Bonafide Research, the India Tyre market is anticipated to grow at more than 7% CAGR from 2024 to 2029. The India tyre market is experiencing significant growth, driven by a combination of increasing vehicle sales, expanding transportation infrastructure, and rising disposable incomes among consumers. As urbanization accelerates and road infrastructure improves, vehicle ownership rates are climbing, further propelling the demand for tyres. Key players in the Indian tyre market include MRF Limited, Apollo Tyres, CEAT Limited, JK Tyre & Industries, and Balkrishna Industries (BKT). These companies have been recognized globally, with several ranking among the top 30 tyre manufacturers worldwide according to the Automotive Tyre Manufacturers' Association (ATMA). MRF and Apollo lead the pack, positioned at 13th and 14th globally, respectively. These companies are not only focusing on expanding their production capacities but are also investing heavily in research and development (R&D) to innovate and produce technologically advanced tyre solutions. Recent trends indicate a shift towards sustainability and eco-friendly practices within the industry. Major manufacturers are adopting energy-efficient manufacturing processes and developing tyres that promote fuel efficiency and reduce carbon emissions. For instance, CEAT has launched its Fuelsmarrt range aimed at minimizing rolling resistance for better mileage. Additionally, the rise of electric vehicles (EVs) is influencing product development, as manufacturers adapt to meet the unique requirements of EVs, which often necessitate specific tyre characteristics.

Passenger Car Tyres represent the largest segment, driven by the increasing sales of passenger vehicles, particularly SUVs and compact cars. The segment has witnessed an uptick in demand due to rising disposable incomes and improved road infrastructure, leading to a projected growth rate of 8-10% in recent quarters. Major manufacturers like MRF, Apollo Tyres, and Michelin are expanding their production capacities to meet this surge, with Michelin planning a new facility dedicated to passenger car tyres set to commence production in 2025. Commercial Tyres are divided into Light Commercial Vehicles (LCVs) and Medium & Heavy Commercial Vehicles (M&HCVs). The LCV segment has seen moderate growth, supported by the expansion of e-commerce and logistics sectors. However, the M&HCV segment has faced challenges due to changing tonnage capacities and fluctuating demand from construction and mining activities. Despite these hurdles, companies are innovating with new products tailored for efficiency and durability. The Two-Wheeler segment remains robust, benefiting from India's vast motorcycle market. With a significant portion of the population relying on two-wheelers for daily transportation, manufacturers are focusing on developing tyres that enhance safety and performance. This segment has shown a growth rate of around 6%, reflecting steady demand. The Three-Wheeler segment caters primarily to auto-rickshaws and small commercial vehicles. This segment is crucial for urban mobility in India, with consistent demand driven by both passenger transport and goods delivery services. Radial tyres are increasingly dominant in the Indian market, particularly for passenger cars and commercial vehicles. Their construction involves layers of fabric cords arranged at a 90-degree angle to the direction of travel, with steel belts reinforcing the tread. This design offers several advantages, including improved fuel efficiency, enhanced durability, and better handling. The radial design reduces rolling resistance, which translates to lower fuel consumption—a crucial factor for cost-sensitive consumers and fleet operators in India. As a result, the demand for radial tyres has been robust, with growth rates of 8-10% reported in recent quarters for passenger car radials (PCR) and 6% for two-wheeler and light commercial vehicle radials. For instance, Michelin has announced a ?564 crore investment in a new facility near Chennai dedicated to passenger car radial tyres, set to commence operations in 2025. This facility will incorporate advanced manufacturing technologies aligned with Michelin's sustainability goals. Bias ply tyres, on the other hand, have a more traditional construction method where the layers of fabric are laid at angles that alternate between 30 and 40 degrees. While they are generally less expensive to produce than radial tyres, bias ply tyres are often perceived as offering inferior performance characteristics. However, they remain relevant in specific segments such as agricultural and industrial applications due to their robustness and ability to withstand rough terrains. The global bias tyre market is projected to grow significantly, driven by increased mechanization in agriculture and mining activities. In India, this segment is supported by ongoing demand from agricultural vehicles and construction machinery. The OEM segment accounts for a significant portion of tyre sales, estimated at around 44% of the total market. This segment involves tyre manufacturers supplying tyres directly to vehicle manufacturers for installation in new vehicles. The growth of this segment is closely tied to the booming automotive industry in India, which has been fueled by rising disposable incomes and an increasing demand for personal and commercial vehicles. As vehicle manufacturers launch new models, especially in the passenger car and SUV segments, the demand for OEM tyres is expected to remain robust. Major tyre companies like MRF, Apollo Tyres, and JK Tyre are actively engaged with OEMs to secure long-term contracts, often customizing their products to meet specific requirements set by automakers. However, this segment also faces challenges due to the high bargaining power of OEMs, which can dictate terms and prices due to their bulk purchasing capacity. The Replacement segment involves consumers purchasing tyres to replace worn-out or damaged ones on existing vehicles. This segment is critical as it contributes significantly to the overall tyre sales volume, driven by factors such as vehicle age, maintenance awareness, and safety concerns. The increasing average age of vehicles on Indian roads has led to a growing demand for replacement tyres. Additionally, as consumers become more aware of tyre maintenance and its impact on vehicle performance and safety, there is a rising trend towards premium and technologically advanced tyres in this market.

Make this report your own

Have queries/questions regarding a report?

Take advantage of intelligence tailored to your business objective

Ask an Expert

Manmayi Raval

Research Consultant

COVID-19 Impact The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined. Key Players Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang Considered in the report • Geography: India • Base Year: 2023 • Historical year: 2018 • Forecasted Year: 2029

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now

Aspects covered in the report • Market Size by Value (2018-2029F) • Market Size by Volume (2018-2029F) • Market Share by Vehicle Type • Market Share by End Use • Market Share by Design • Market Share by Sales Channel • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.