Strong overseas demand, particularly from Europe, supports India’s tyre industry despite geopolitical and supply-chain challenges
India’s tyre exports increased 16% year-on-year to ₹7,700 crore during the first quarter of FY2026-27, according to data from the Ministry of Commerce cited by the Automotive Tyre Manufacturers’ Association (ATMA). The growth was recorded despite geopolitical uncertainty, supply-chain disruptions and elevated input and logistics costs.
The April-June performance follows a strong FY2025-26, when India’s tyre industry achieved a record export value of ₹27,312 crore, representing a 9% increase over the previous year. The latest figures indicate that overseas demand for Indian-made tyres has remained resilient into the new financial year.
Passenger Car Radial (PCR) tyres were among the strongest performers during the quarter, with their export value increasing 21% compared with the same period a year earlier. The growth reflects increasing acceptance of Indian-manufactured tyres in international markets.
Europe was a major contributor to the export momentum. Tyre shipments to the region increased 25% to ₹3,003 crore, accounting for almost 40% of India’s total tyre export value during the quarter.
The United States remained India’s largest individual export destination, representing 16% of total tyre export value during Q1. Indian-manufactured tyres are currently supplied to more than 170 countries, giving domestic manufacturers a broad international market presence.
Other important markets include Germany, Italy, Brazil and France. In FY2025-26, Germany accounted for 7% of India’s tyre exports, while Italy and Brazil each contributed 5% and France accounted for 4%. Together, these markets represented more than one-fifth of India’s tyre exports.
The export expansion has been supported by substantial investment from Indian tyre manufacturers. ATMA estimates that companies have invested approximately ₹30,000 crore in greenfield and brownfield projects over the past four to five years, strengthening production capabilities, technology and capacity.
ATMA Chairman Arun Mammen said the first-quarter growth reflects increasing global acceptance of Indian tyres and continued industry investment in technology, manufacturing capacity, product development and quality.
The association has also highlighted the importance of improved market access through trade agreements and supportive export policies. Such measures could help Indian manufacturers expand into additional international markets and strengthen the country’s position as a global tyre manufacturing and export hub.
Beyond direct tyre shipments, India’s global footprint also extends through tyres supplied as original equipment on vehicles manufactured in the country and subsequently exported to international markets.
The latest export performance highlights the growing global competitiveness of India’s tyre manufacturing sector and its expanding role in international automotive supply chains.