India’s Tyre Exports Surge 16% to ₹7,700 Crore in Q1 FY27 as Global Demand Strengthens

India’s tyre manufacturing industry has opened the 2026-27 financial year with strong export growth, with overseas shipments rising 16 per cent year-on-year to approximately ₹7,700 crore during April-June 2026.

The performance extends the export momentum built during the previous financial year and highlights the increasingly important position occupied by Indian tyre manufacturers in international automotive and mobility supply chains.

The Automotive Tyre Manufacturers’ Association (ATMA), citing trade data released by the Ministry of Commerce and Industry, said the growth was achieved despite continuing geopolitical uncertainty, disruptions in global supply chains and elevated input and logistics costs.

The government’s TradeStat system, maintained by the Department of Commerce, currently contains final monthly trade data through June 2026, covering the entire first quarter of FY2026-27.

Strong Start After Record FY2025-26

The latest quarterly performance follows a record year for Indian tyre exports.

Exports reached ₹27,312 crore during FY2025-26, increasing about 9 per cent from ₹25,057 crore in FY2024-25. ATMA has officially highlighted the ₹27,312-crore figure as a new milestone for the domestic tyre industry.

This means the industry has entered FY2026-27 from an already elevated export base, making the 16 per cent year-on-year increase during the June quarter particularly significant.

The growth also suggests that Indian manufacturers have been able to sustain overseas demand despite the difficult international trading environment, including freight volatility, geopolitical tensions and changes in tariff structures in major markets.

ATMA Chairman Arun Mammen has attributed the industry’s increasing international acceptance to sustained investment in manufacturing capacity, technology, product development and quality.

The industry has undergone substantial modernisation in recent years as manufacturers expanded radial-tyre capacity, upgraded testing and research facilities and developed products aimed at meeting the regulatory, safety and performance standards of mature automotive markets.

Passenger Car Radial Tyres Record 21% Export Growth

One of the strongest areas of expansion during the April-June quarter was the Passenger Car Radial tyre segment, commonly referred to as PCR tyres.

Exports of PCR tyres increased 21 per cent in value terms compared with the corresponding quarter of the previous year, substantially exceeding the overall 16 per cent growth recorded by tyre exports.

The performance is significant because passenger-car tyres sold in developed markets operate in a highly competitive environment where manufacturers must satisfy stringent requirements covering braking performance, rolling resistance, durability, wet grip, noise, fuel efficiency and increasingly environmental performance.

Growth in this segment therefore reflects not simply higher production capacity in India but greater acceptance of Indian-manufactured products in demanding overseas markets.

Indian manufacturers today produce tyres across virtually the entire mobility spectrum, including passenger cars, motorcycles, scooters, trucks and buses, agricultural machinery, earthmoving equipment, mining vehicles and specialised off-highway applications.

ATMA has said that India is now self-sufficient in manufacturing across all major tyre categories.

Europe Emerges as Major Growth Engine

Europe was the standout regional market during the first quarter.

Indian tyre exports to European markets increased 25 per cent year-on-year to ₹3,003 crore during April-June 2026.

Europe consequently accounted for nearly 40 per cent of India’s total tyre export value during the quarter, establishing it as one of the most important regions for the industry.

The strong European performance is noteworthy because the region maintains some of the world’s most demanding tyre standards, particularly in areas such as safety, wet braking, rolling resistance, external noise and environmental performance.

Growing exports to Europe therefore strengthen the industry’s argument that Indian tyre manufacturing has moved well beyond a low-cost production model and is increasingly competing on technology, quality and product performance.

Germany, France and Italy have already emerged among India’s major individual tyre markets. ATMA’s official industry communication identified the United States as the largest export destination during FY2025-26, followed by important markets including Germany, Italy, Brazil and France.

United States Remains Largest Individual Market

While Europe is India’s largest major regional destination, the United States continues to be the single largest country market for Indian tyres.

The US accounted for approximately 16 per cent of India’s total tyre export value during the first quarter of FY2026-27.

Its share has remained substantial despite changes in the tariff environment affecting Indian exports.

During FY2025-26, the United States represented around 15 per cent of India’s tyre exports, valued at approximately ₹4,082 crore. Germany accounted for roughly 7 per cent, while Italy and Brazil each represented about 5 per cent and France around 4 per cent.

The continued importance of both the United States and Europe demonstrates that India’s tyre export growth is increasingly linked to some of the world’s largest and most sophisticated automotive markets.

At the same time, diversification across other destinations reduces dependence on any single market and provides manufacturers with some protection against tariffs, economic downturns or regulatory changes in individual countries.

Indian Tyres Now Reach More Than 170 Countries

India’s tyre industry today has a remarkably broad geographic footprint.

Indian-manufactured tyres are exported to more than 170 countries, covering markets across North America, Europe, Latin America, Africa, West Asia and Asia-Pacific.

ATMA has repeatedly highlighted this global reach in its official industry communications.

This expansion has occurred alongside a major increase in export value. ATMA says tyre exports have nearly doubled since 2020 despite a challenging geopolitical and global trading environment.

That makes tyres an increasingly visible part of India’s wider push to expand exports of higher-value manufactured products rather than relying primarily on commodities or basic industrial goods.

Global Footprint Extends Beyond Direct Tyre Exports

The industry’s overseas presence is also larger than direct tyre-export statistics alone indicate.

Indian tyre factories supply original-equipment tyres to cars, motorcycles, commercial vehicles and other automobiles manufactured in India. When those vehicles are exported, the Indian-made tyres fitted to them also enter overseas markets as part of the finished vehicle.

As India becomes a larger global manufacturing and export base for automobiles, two-wheelers, commercial vehicles and off-highway machinery, this indirect route provides tyre manufacturers with an additional channel for international expansion.

Original-equipment supply also creates an important pathway into replacement markets. Consumers who encounter an Indian-manufactured tyre as original equipment on a vehicle may subsequently purchase the same brand or specification when replacement becomes necessary.

Manufacturing Investment Supports Export Expansion

The expansion of India’s tyre exports has been accompanied by substantial investment in domestic manufacturing.

ATMA has highlighted investments exceeding ₹27,000 crore in recent years as manufacturers add capacity, improve technology and strengthen India’s tyre-production ecosystem.

These investments cover both new factories and expansion or modernisation of existing facilities.

Advanced tyre production increasingly depends on automated manufacturing, sophisticated rubber compounds, precision engineering, digital quality control, advanced testing equipment and extensive research and development.

India’s ability to supply markets with different vehicle types, climates, road conditions and regulatory standards consequently depends on manufacturers maintaining a wide product-development and testing capability.

The combination of a large domestic automotive market and growing exports gives Indian manufacturers another advantage: production facilities can operate at considerable scale while serving both Indian and overseas demand.

Trade Agreements Could Provide the Next Export Push

ATMA believes improved market access could allow the industry to accelerate exports further.

Trade agreements that reduce import duties on Indian tyres, harmonise standards or simplify regulatory procedures could improve competitiveness against manufacturers from countries already benefiting from preferential market access.

The issue is particularly important in tyres because even manufacturers with comparable products can face substantial differences in competitiveness when tariff levels vary between supplying countries.

Expanding India’s network of free-trade and preferential-trade agreements could therefore have a direct impact on the industry’s ability to penetrate additional developed and emerging markets.

Export policy, logistics efficiency, port connectivity and access to competitively priced raw materials will also influence the industry’s ability to maintain its current growth trajectory.

Raw Materials and Logistics Remain Important Challenges

Despite the positive export figures, tyre manufacturing remains exposed to fluctuations in input costs.

Natural rubber is one of the industry’s most important raw materials, while synthetic rubber, carbon black, steel cord, textile reinforcement materials and petroleum-linked chemicals also influence manufacturing costs.

Movements in crude-oil prices can consequently affect several components of tyre production simultaneously.

Freight costs and shipping disruptions represent another significant challenge because tyres are relatively bulky products. Changes in container availability, shipping routes and ocean freight rates can therefore have a substantial impact on export competitiveness.

The industry’s ability to record double-digit export growth despite these pressures points to improved manufacturing productivity, stronger international distribution networks and growing demand for Indian products.

India Strengthens Its Position as a Global Tyre Manufacturing Base

The 16 per cent rise to ₹7,700 crore during the first quarter of FY2026-27 represents more than a quarterly increase in shipments.

It comes immediately after India’s tyre industry achieved its highest-ever annual export value and shows that the momentum has continued into the new financial year.

More importantly, the composition of the growth is encouraging. Passenger Car Radial tyre exports are expanding faster than the industry average, European markets are recording strong growth and the United States continues to provide a large individual market.

With Indian tyres now reaching more than 170 countries, substantial manufacturing investment underway and the domestic automobile industry itself becoming increasingly export-oriented, tyres are emerging as one of the stronger examples of India’s transition towards higher-value global manufacturing.

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