India’s tyre industry has shown remarkable resilience in FY25, recording a 9% year-on-year rise in exports, reaching a value of $2.93 billion. This growth comes despite the backdrop of global trade uncertainties and disruptions in international supply chains, according to data released by the Automotive Tyre Manufacturers Association (ATMA).
With a total industry turnover estimated at $11.67 billion, the tyre sector remains one of India’s strongest manufacturing segments, boasting a significant export-to-revenue ratio. The majority of outbound shipments—around 60%—came from farm and off-the-road (OTR) tyres, which continue to dominate export volumes due to strong demand from agricultural and industrial sectors globally.
India shipped tyres to more than 170 countries, with the United States accounting for 17% of the total export share, followed by Germany (6%), Brazil (5%), UAE (4%), and France (4%).
ATMA Chairman Arun Mammen highlighted that over the past four years, the industry has collectively poured in $3.15 billion into both greenfield and brownfield projects. This sustained investment reinforces global trust in India’s manufacturing capabilities and long-term economic stability.
Despite this momentum, the tyre industry faces a pressing challenge: securing enough natural rubber to keep up with production demands. India relies on imports for 40% of its rubber supply, as domestic output remains limited. Uniquely, 60% of rubber consumption in Indian tyre manufacturing comes from natural rubber, whereas the global industry leans more toward synthetic alternatives.
To bridge this gap, ATMA has partnered with the Ministry of Commerce and Industry and the Rubber Board of India to launch Project INROAD (Indian Natural Rubber Operations for Assisted Development). Backed by $128.4 million in funding from four leading ATMA members, the initiative targets cultivation of an additional 200,000 hectares of natural rubber. It also includes support for infrastructure development and skill-building in key rubber-producing regions.
However, ATMA noted that while Project INROAD is a significant first step, additional policy and private sector intervention will be vital to meet increasing domestic demand and enhance India’s export competitiveness on the world stage.
