Industry records exports worth ₹27,312 crore as manufacturers expand global presence and strengthen production capabilities
India’s tyre industry achieved a record export performance in FY2025-26, with exports rising 9% year-on-year to ₹27,312 crore, according to data from the Ministry of Commerce. This marks the second consecutive year of 9% growth in tyre exports, reflecting the sector’s resilience despite global economic uncertainties, geopolitical tensions, and changing trade dynamics.
The United States remained the largest export destination for Indian tyres during the fiscal year, accounting for exports worth ₹4,082 crore, representing approximately 15% of the total export value. However, the country’s share declined from 17% in the previous fiscal year due to changes in U.S. trade policies that impacted the competitiveness of Indian tyre products.
Indian tyre manufacturers faced a significant challenge when the United States increased tariffs on tyre imports from India from 25% to 50% in August 2025. The higher duties affected export competitiveness in one of the industry’s most important markets. However, a reduction in tariffs on most Indian goods to 18% in February 2026 helped ease some of the pressure and supported export growth during the latter part of the fiscal year.
Despite these challenges, Indian tyre makers successfully diversified their export markets. Germany emerged as the second-largest destination, accounting for 7% of exports, followed by Italy and Brazil at 5% each, while France contributed 4% of total export shipments. The broader geographic spread of exports helped offset market-specific challenges and maintain overall growth momentum.
The Automotive Tyre Manufacturers Association (ATMA) credited the strong performance to sustained investments and improvements in manufacturing capabilities. Industry leaders noted that the sector has remained resilient despite disruptions in global supply chains, rising logistics costs, and trade uncertainties.
Over the past four to five years, Indian tyre manufacturers have invested nearly ₹30,000 crore in expanding production capacities through both greenfield and brownfield projects. These investments have enhanced manufacturing efficiency, improved product quality, and strengthened the industry’s ability to compete in global markets. The Indian tyre industry currently generates an annual turnover of around ₹1 lakh crore and continues to play a significant role in the country’s manufacturing and export landscape.
Looking ahead, the industry remains optimistic about future growth prospects. Continued market diversification, ongoing capacity expansion, and India’s growing position as a global manufacturing hub are expected to support export momentum. Industry stakeholders also believe that new trade opportunities and stronger integration into international supply chains will further boost the global competitiveness of Indian tyre manufacturers.