Apollo Tyres has confirmed that it will continue with its planned capacity expansion initiatives in India and Europe after reporting strong utilisation levels of about 90% across both regions.
During the company’s FY earnings conference call held on May 15, Chief Financial Officer Gaurav Kumar stated that demand has remained healthy despite ongoing global macroeconomic uncertainty and market volatility. He also noted that the company struggled at times to fully meet demand in the past quarter, but expects operations to move toward full capacity utilisation going forward.
For FY27, which began on April 1, Apollo Tyres has planned a capital expenditure of approximately ₹35 billion (around €370 million). Nearly 80% of this investment will be directed toward expansion and growth-related projects.
Out of the total planned capex, close to ₹30 billion will be invested in India, where the company is increasing production capacity for both passenger car radial (PCR) tyres and truck and bus radial (TBR) segments. The remaining funds will be used primarily to expand passenger car tyre capacity at Apollo’s Hungary facility, where expansion work is already in progress.
The company also indicated that while its long-term investment strategy remains flexible, most of the FY27 spending is already committed. However, it added that there could be adjustments in FY28 depending on market conditions.
This update comes after Apollo Tyres earlier announced a broader investment plan of ₹58 billion covering FY27 to FY29, aimed at expanding its PCR and TBR production capabilities across key markets.