Unlocking Potential: Indian Tyre Industry Poised for 12x Revenue Surge by 2047 – Insights from ATMA-PwC Report

The Indian tyre industry is set for remarkable changes. By 2047, production could grow nearly four times, while revenues may rise twelve-fold to about ₹1,300 thousand crore. This optimistic outlook comes from a report by the Automotive Tyre Manufacturers’ Association (ATMA) and PwC India, titled “Viksit Bharat 2047: Vision and roadmap for the Indian tyre industry.” Several factors are driving this growth, such as premium products, rising raw material costs, more exports, and shifts toward electric vehicles.

Kavan Mukhtyar from PwC India notes the potential for the tyre industry to meet the needs of India’s growing market and expand exports, particularly to the US and EU. He highlights the importance of innovation, advanced materials, and sustainable practices to thrive in a rapidly changing environment.

ATMA Chairman Arun Mammen adds that the sector is on the verge of a major change. With India’s economy booming and evolving transport trends, there are many chances for growth. He emphasizes that embracing sustainability and technology can drive the industry to its ambitious revenue goals.

PwC has introduced the CHARGE framework, which lays out six key strategies for sustainable growth. These are Customer Relevance, High-Quality Standards, Adaptability, Resilience, Resource Efficiency, and Growth Through Innovation. Together, they aim to future-proof the industry and keep it competitive.

Sanjay Dawar from PwC explains that achieving these growth targets will require a unified strategy of innovation, sustainability, and strong partnerships. He claims this approach will help the industry align with the vision for a better India by 2047.

Domestically, the tyre market is expected to grow at a rate of 10% per year up to FY47. Increased sales of passenger vehicles and two-wheelers, driven by rising incomes, will play a crucial role. Higher spending on infrastructure will also boost demand for commercial vehicles. However, challenges like limited natural rubber supplies and new transport solutions—like VTOL (vertical take-off and landing) aircraft—could arise.

Internationally, exports are projected to surge, with companies encouraged to innovate and take advantage of free trade agreements. However, hurdles such as strict regulations and non-tariff barriers must be addressed. There is also an emerging trend of “servitization,” which involves offering professional tyre management and monitoring services. Companies will need to tackle issues like scalability and data security to capitalize on these opportunities.

Overall, the Indian tyre sector stands at a crossroads, with abundant possibilities for growth and innovation. As the industry moves forward, it will not only enhance its domestic presence but also establish a stronger foothold in global markets. This transformation aligns with India’s broader economic ambitions and sets a promising path for the future of mobility.

For further insights, you can delve into the full report by ATMA and PwC [here](https://www.atmaindia.org.in/).

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