Agricultural Tire Manufacturing Plant

Report Overview:

IMARC Group’s report, titled “Agricultural Tire Manufacturing Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up an agricultural tire manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The agricultural tire project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Agricultural Tire?

An agricultural tire is a dedicated tire that is used on farm and agricultural equipment like tractors, harvesters, sprayers, and trailers. They are made in a way to give maximum traction on soft grounds, uneven ground, and soggy fields, thus making it efficient to operate under harsh conditions. They are constructed using strong rubber compounds and reinforced designs to handle heavy loads and repeated field-to-road cycles. Agricultural tires are available in many designs, such as radial and bias types, to meet the requirements of diverse machinery and uses. Their function is critical in increasing productivity, minimizing soil compaction, and providing safe, dependable operation for today's farming activities.

Agricultural Tire Manufacturing Plant: Key Highlights

• Process Used: Vulcanization process
• End-use Industries: Agriculture, forestry, and construction industries
• Applications: Used in tractors, harvesters, sprayers, irrigation equipment, and farm trailers

An agricultural tire manufacturing plant is a specialized facility designed to produce durable tires used in farming and off-road applications. The process involves several key stages, including rubber compounding, mixing, extrusion, calendaring, tire building, curing through vulcanization, and final inspection. These plants are equipped with advanced machinery such as internal mixers, extruders, calendaring machines, tire building machines, curing presses, and quality control laboratories to ensure strength, traction, and durability. Given the use of rubber and chemical compounds, strict safety measures, environmental compliance, and waste management systems are essential. Agricultural tires produced in these facilities serve a wide range of machinery, including tractors, harvesters, sprayers, and farm trailers, supporting agriculture, forestry, and related industries.

Agricultural Tire Industry Outlook 2025:

The agricultural tire market is being shaped by the increase in mechanization of farming practices and machinery as farmers look to increase their productiveness. With the demand for food worldwide increasing and effective farming practices taking place on larger land areas, demand for tractors, harvesters, and other equipment is increasing, thereby also increasing tire consumption. Innovation in tire configurations, like radial tires as an example, which provide better traction, more durability and less compaction of soil, is also driving increased sales in the agricultural tire market. Government support for modernized operation practices, developments in commercial agriculture, coupled with a high level of current replacement demand of tires are expanding the agricultural tire market. The growing interest in sustainable tires and high-performance will start to generate more opportunities in both developed and emerging markets. Consistent with this trend, Continental AG launched new sizes in both the TractorMaster and CompactMaster AG/EM series in October 2023 to expand its agricultural portfolio for farmers with larger and more powerful machines, and of course, to prepare for future developments in the farming sector.

Agricultural Tire Market Trends and Growth Drivers:

Government support for farm mechanization

Government efforts that promote farm mechanization are a significant growth driver for the global agricultural tire market. The Kisan Tractor Yojana program offered by the Government of India provides a 50% subsidy to farmers, making tractors and agricultural equipment more accessible to farmers. These types of programs not only speed up the acceptance of modern equipment but also increase demand for agricultural tires. Other subsidy and financing programs in regions around the world, such as Africa, Asia-Pacific, and Latin America, are also driving the uptake of more advanced farming machinery. All of these global initiatives to mechanically farm will drive the agricultural tire market as they increase the base of tractors, harvesters, and farm equipment installed across the globe.

Rising agricultural output to meet global food demand

The USDA estimates that agricultural production has increased by almost four times, while the total population has increased 2.6 times, resulting in 53% growth in agricultural production. An increase in agricultural production creates the need for more efficient and larger scale farming to meet global food demand. As larger farms evolve and implement robust agricultural equipment to increase productivity, they will look for and require durable and high-performing agricultural tires. The need for tires that can handle heavy loads, a variety of terrains, and long operational hours will continue to grow as agricultural production increases. This is a key driver for the global agricultural tire market.

Latest Industry Developments:

• July 2025: The Goodyear Tire and Rubber Co., USA, parent company of India-listed Goodyear India, announced plans to divest its farm tire business in India and has initiated the sale process.
• July 2024: Michelin inaugurated its Cosmos machine at the Troyes industrial site, introducing a groundbreaking system for agricultural tire production that enhances efficiency and ergonomics, marking a first within the Michelin group.
• May 2023: Bridgestone expanded its VX-R TRACTOR tire range by launching 23 new sizes in the 65, 70, and 85 series (24–38-inch rims), developed with Enliten technology to improve sustainability while maintaining high performance.

Leading Agricultural Tire Manufacturers:

Leading manufacturers in the global agricultural tire industry are specialized tire companies with large-scale production, advanced engineering expertise, and diversified applications across farming machinery. Key players include

• Balkrishna Industries Limited (BKT)
• Titan International, Inc.
• Bridgestone Corporation
• Continental AG
• Sumitomo Rubber Industries, Ltd.
• Compagnie Générale des Établissements Michelin (CGEM)

all of which operate large-scale facilities and serve end-use sectors such as agriculture, forestry, and construction industries.

Agricultural Tire Plant Setup Requirements

Detailed Process Flow:

The manufacturing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the agricultural tire manufacturing process flow:

• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests

Key Considerations for Establishing a Agricultural Tire Manufacturing Plant:

Setting up a agricultural tire manufacturing plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

• Site Selection: The location must offer easy access to key raw materials such as natural rubber, synthetic rubber, carbon black, steel wires, textile cords, chemicals, and curing agent. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for agricultural tire production must be selected. Essential equipment includes mixing mills, internal mixers, extruders, calendaring machines, tire building machines, curing presses, and testing equipment. All machinery must comply with industry standards for safety, efficiency, and reliability.​
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like natural rubber, synthetic rubber, carbon black, steel wires, textile cords, chemicals, and curing agents to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
• Safety and Environmental Compliance: Safety protocols must be implemented throughout the manufacturing process of agricultural tire. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a agricultural tire manufacturing plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
• Equipment Costs: Equipment costs, such as those mixing mills, internal mixers, extruders, calendaring machines, tire building machines, curing presses, and testing equipment, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
• Raw Material Expenses: Raw materials, including natural rubber, synthetic rubber, carbon black, steel wires, textile cords, chemicals, and curing agent, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the agricultural tire manufacturing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

Operational Expenditure Breakdown:

Profitability Analysis:

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing agricultural tire plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.