India Tyre Market Size, Share, Growth, Demand, Analysis: By Vehicle Type: Passenger Car, Light Commercial Vehicle, Medium and Heavy Commercial Vehicle, Two Wheelers and Three Wheelers, Others; By Design; By Type; By Tyre Size: By Price Segment; By Distribution Channel; Regional Analysis; Competitive Landscape; 2024-2032

India Tyre Market Outlook

The India tyre market size reached a volume of nearly 190.54 million units in 2023. The market is projected to grow at a CAGR of 6.6% between 2024 and 2032 and reach a volume of around 339.37 million units by 2032.

Key Takeaways

• The automobile industry of India is a key contributor to the growth of the economy with a share of almost 6.4% of the country’s GDP and 35% of manufacturing GDP.

• MRF Limited, Apollo Tyres Limited and CEAT Limited are a few of the major companies in the market.

• The Indian tyre manufacturers are witnessing an increase in capacity utilisation driven primarily by the replacement demand. The replacement sector constitutes about two-thirds of tyre demand.

The demand for tyres is driven by the robust growth of the automotive industry. As the Indian population continues to grow, there is an increasing demand for personal transportation solutions, which has led to a rise in the number of cars, trucks, and motorcycles on the roads. The growing disposable incomes, along with the increasing youth population, are significantly contributing to the growth of the automobile sector, propelling the India tyre market growth.

The Indian government is increasingly focusing on manufacturing products locally, supported by various schemes and initiatives. Government schemes such as Atmanirbhar Bharat Abhiyan- Self Reliant India, support the manufacturing of automobiles in the country and aim to make the country a manufacturing hub. This is creating a favourable environment for market expansion in the country. By 2030, the Indian government pledged to have 30% of new car sales in the country be electric.

Figure: Automotive Production in India (in Million), 2018-2023

Key Trends and Developments

Expanding automotive production; rising demand for OEM tyres; increasing adoption of technologically advanced tyres; and surging adoption of EVs are favouring the India tyre market growth

April 2023

Continental began the production of Tyre Pressure Monitoring System (TPMS) for passenger cars at its Bangalore plant.

April 2023

Michelin, the French multinational tyre manufacturer, announced its intention to manufacture passenger vehicle tyres in India to enhance its operations in the country.

April 2023

CEAT Limited, a prominent tyre manufacturer, opened a state-of-the-art Truck Service Hub in Gandhidham in partnership with Bharat Tyres Gujarat Pvt Ltd, a CEAT dealer.

January 2023

CEAT Limited achieved a significant industry milestone by being the world's first tyre company to receive Lighthouse certification.

Expanding automotive production

India’s production of tractors, buses, and two-and-three wheelers is significantly rising. This, coupled with the increasing opportunities for EVs, is likely to boost tyre demand.

Favourable government initiatives promoting automotive manufacturing

Favourable initiatives by the Indian government and automotive manufacturers such as the Automotive Mission Plan 2016- 2026 aimed at supporting domestic manufacturing are supporting the market.

Strong growth in the original equipment manufacturers (OEM)

Tyre manufacturers are observing higher demand from OEMs due to the improving macro environment. The OEMs in the Indian market are focusing on radicalisation across most vehicle categories due to the BS6 (Bharat Stage 6) norms mandated by the government for vehicles sold in India (in 2020).

Increasing adoption of technologically advanced tyres

Technological advancements such as the introduction of smart tyres installed with sensors or for EVs are further supporting the growth of the market.

Surging demand for electric vehicles

By 2025, the India EV market is expected to reach USD 7.09 billion. The government’s vision for electric vehicle charging infrastructure further boosts the demand for electric vehicles in India.

India Tyre Market Trends

India is the third-biggest automobile market in the world, the biggest producer of tractors, three-wheelers, and passenger cars, and the second-biggest producer of two-wheelers. In 2023, India produced 5.8 million automobiles in total. As the average age of vehicles on Indian roads increases, there is a growing demand for replacement tyres. This has been driven by the increasing awareness of the importance of tyre maintenance and safety.

Furthermore, India's EV finance sector is expected to grow to USD 50 billion by 2030, as per NITI Aayog and the Rocky Mountain Institute (RMI). According to industry reports, the EV market in India would increase at a CAGR of 36% until 2026. Along with companies exploring the rural markets, greater demand for logistics and passenger transportation has collectively aided the India tyre market growth.

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Market Segmentation

India Tyre Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type:

• Passenger Car

• Light Commercial Vehicle

• Medium and Heavy Commercial Vehicle

• Two Wheelers and Three Wheelers

• Off Road

• Others

Market Breakup by Design:

• Radial

• Bias

Market Breakup by Type:

• Tube

• Tubeless

Market Breakup by Tyre Size:

• Small

• Medium

• Large

Market Breakup by Price Segment:

• Low

• Medium

• High

Market Breakup by Distribution Channel:

• OEMs

• Replacement

Market Breakup by Region:

• North Region

• South Region

• East Region

• West Region

Two wheelers and three wheelers are expected to dominate the India tyre market share due to rising demand for personal mobility solutions

Rapid urbanisation, improvements in road infrastructure, and rising disposable income are increasingly leading to greater adoption of passenger cars in the country. In 2023, India produced 4.7 million personal vehicles.

India has the largest youth population in the world, around 66% of the total population (more than 808 million) is below the age of 35. A growing youth population in the country has contributed to the demand for two-wheelers. Additionally, two-wheelers provide the convenience of travelling through narrow roads, helping commuters reach their destination on time. The demographic dividend of India and rising demand for personal mobility solutions expand the India tyre market expansion.

The expansion of the mining and construction sectors is surging the demand for medium and heavy commercial construction and mining vehicles. In 2023, India produced 1.0 million commercial vehicles in total.

Competitive Landscape

Major players in the India tyre market are increasing their collaboration, partnership, and research and development activities to gain a competitive edge

MRF Limited

MRF Limited, headquartered in India and founded in 1946, offers a diverse range of tyres catering to various types of vehicles, including heavy and light commercial vehicles, passenger cars, tractors, earthmovers, and motorsport vehicles. Some of its key brands include MUSCLE LIFT, STEEL MUSCLE, SHAKTI LIFE, SHAKTI SUPER, SUPER LUG, and SAVARI, among others.

Apollo Tyres Ltd

Apollo Tyres Ltd is a prominent player in the tyre industry, manufacturing and distributing quality tyres worldwide. Its product line includes several renowned brands such as ALNAC, AMAZER, APTERRA, ASPIRE, ALTRUST, MANCHESTER UNITED, and QUANTUM.

CEAT Limited

Headquartered in India and founded in 1858, CEAT offers a comprehensive selection of tyres suitable for all types of vehicles, ranging from heavy-duty trucks and buses to light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles, scooters, and even auto-rickshaws. The company is committed to producing top-quality tyres for cars, bikes, and scooters.

JK Tyre & Industries Ltd.

Headquartered in India and founded in 1951, the company has introduced innovative 'Smart Tyre' technology in India, with Tyre Pressure Monitoring Systems (TPMS) and TREEL Sensors that enable real-time monitoring of a tyre's critical parameters, such as pressure and temperature.

Other key players in the India tyre market include Balkrishna Industries Limited, TVS Srichakra Limited, The Goodyear Tire & Rubber Company, Bridgestone Corporation, Continental Tyre Group Ltd, and Metro Tyres Limited.

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India Tyre Market Analysis by Region

North India is home to prominent tyre manufacturers that are seeking to expand their retail network in smaller cities and towns, to fulfil the growing demand for local services. Manufacturers are expanding their retail network in Northern India due to the increasing number of cars on the road and the demand for local services in smaller cities and towns. For instance, in February 2023, JK Tyre Industries opened 6 new outlets in North India spread across Uttar Pradesh, Haryana, and Rajasthan, to improve its presence in rural areas.

In East India, the increasing car ownership in states like Sikkim and Nagaland is positively influencing the demand for tyres. According to industry reports, in 2022, Sikkim and Nagaland accounted for 20.9% and 21.3% of more cars than households in Delhi. The growing investments in states like West Bengal and the Northeast aim to address the supply-demand gap of natural rubber used for tyre manufacturing in India.

With ease of doing business in West Indian states like Gujarat and Maharashtra, manufacturers have been focusing on boosting their production capacities. Increasing investment by leading manufacturers for production expansion drives the India tyre market growth.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.