Unlocking Potential: Indian Tyre Industry Set to Soar to ₹13 Lakh Crore by 2047, Reports ATMA-PwC

India’s tyre industry is on the brink of a major transformation. A recent study by the Automotive Tyre Manufacturers’ Association (ATMA) and PwC India predicts that revenues could skyrocket to nearly ₹13 lakh crore by 2047—an impressive twelvefold increase. This growth is not just a number; it’s a sign of how the industry is evolving.

One key driver is the rise in automobile ownership in India. As more people buy cars and commercial vehicles, the demand for tyres will naturally increase. By 2047, tyre production could quadruple, supported by a strong push from domestic manufacturers and government initiatives aimed at bolstering India as a manufacturing hub.

Another interesting factor is the changing preferences of consumers. People are now looking for premium tyres that offer better quality and durability. This shift toward premiumisation, combined with rising raw material costs, is likely to push profit margins higher. Additionally, emerging trends like electric vehicles and sustainability are reshaping tyre technology. Tyre makers are beginning to explore new business models, such as tyre leasing and subscription services.

The Indian government’s vision for a developed Bharat by 2047 aligns closely with the tyre sector’s growth potential. As infrastructure improves and more vehicles hit the roads, revenues from original equipment manufacturers (OEMs) and replacement tyres are expected to grow at a compound annual growth rate of 10% until fiscal year 2047. Commercial vehicle tyres will play a significant role in this growth, driven by advancements in logistics.

When it comes to exports, Indian tyre manufacturers have the chance to make a mark on the global stage. Effective trade policies and stringent sustainability standards can help boost their share in the international market. Recent trade statistics show that exports of passenger and truck tyres to Europe and North America are increasing. This is partly due to anti-dumping tariffs on Chinese tyres, making Indian-made products more appealing.

Industry experts highlight that top players like MRF and Apollo Tyres are already expanding their capacities to meet future demands. They are investing in green tyre technologies and are shifting towards circular economy practices, including tyre recycling and retreading. Moreover, digital solutions for predictive maintenance and fleet management are becoming essential tools for growth in the aftermarket sector.

Overall, the future looks promising for India’s tyre industry. With a combination of consumer trends, government support, and technological advancements, it is poised for significant change and development in the coming years.

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