What is the Future of Tyre Industry in India?

13-Aug-2025

The India tyre market was worth USD 13.4 Billion in 2024 and is expected to generate a revenue of USD 27.6 Billion by 2033, expanding at a compound annual growth rate (CAGR) of 7.6% during the forecast period (2025-2033).

Over the coming years, rapid urbanization, rising vehicle ownership, and robust demand from the automotive sector will remain core growth pillars. Government efforts, enhanced road infrastructure, and growth in electric vehicles (EVs) will further transform the market landscape. The future will also be shaped by widespread adoption of radial and tubeless tyres, innovations in EV-specific tyre designs, and an increasing focus on sustainable, eco-friendly products. Expanding opportunities in the tyre replacement segment and premiumisation trends are expected to create additional momentum, positioning India as one of the fastest-growing tyre markets globally.

India tyre market

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India Tyre Market Analysis 2025-2033:

The India tyre market was valued at USD 13.4 Billion in 2024.
The market is projected to reach USD 27.6 Billion by 2033.
The CAGR during the forecast period (2025-2033) is expected to be 7.6%.
West and Central India dominate the tyre market due to robust automotive hubs and infrastructure.
Radial tyres are the largest segment in the market, driven by their durability and fuel efficiency.
Replacement tyres hold the largest share in the market due to increasing vehicle ownership and consumer awareness.
Two-wheeler tyres represent the largest vehicle segment, supported by high scooter and motorbike ownership.
Tubeless tyres are the preferred option, especially for passenger cars and two-wheelers, due to improved safety and fuel efficiency.

Market Overview:

The India tyre market encompasses a broad range of products designed to meet the needs of various vehicle types, including two-wheelers, passenger cars, and commercial vehicles. Strong domestic production and increased vehicle ownership are supported by strong and conducive government policies. Rising demand for high-quality tyres, particularly radial and tubeless tyres, is stimulated by rapid urbanization and related infrastructure development in India's automotive sector, with this and the growing demand for electric vehicles (EVs) and commercial vehicles in logistics and e-commerce contributing to the market's growth.

What are the Key Trends Driving Growth in the India Tyre Industry?

Shift Towards Radial and Tubeless Tyres: The demand for radial tyres is growing due to their superior durability, fuel efficiency, and safety features. Tubeless tyres are gaining popularity due to their lower rolling resistance, puncture resistance, and smoother rides, especially in passenger cars and two-wheelers.
Rising Influence of Electric Vehicles (EVs): As electric vehicle adoption increases, tyre manufacturers are focusing on developing specialized tyres for EVs. These tyres are optimized for lower rolling resistance, enhanced load-bearing capacity, and quieter rides, driving innovation in the market.
Expansion of the Tyre Replacement Market: With rising vehicle ownership and better consumer awareness of tyre maintenance, the replacement tyre market is experiencing robust growth. The increased focus on premium tyres with longer tread life and improved performance is also contributing to this growth.
Government Support for Domestic Production: Favorable government initiatives promoting domestic tyre production and reducing imports are supporting the growth of the India tyre market. Investments in manufacturing capacity and innovation are enhancing the competitive edge of domestic tyre brands.

What are the Market Dynamics?

Driver: Growing Vehicle Ownership and Urbanization

Rapid urbanization and increasing vehicle ownership are key drivers of the India tyre market. As more people purchase vehicles, the demand for high-quality tyres for both new and replacement markets is increasing, particularly in urban and semi-urban regions.

Opportunity: Growth of the EV Market

The expansion of the electric vehicle market presents significant opportunities for tyre manufacturers to innovate and develop specialized tyres tailored to the needs of EVs, such as those with lower rolling resistance and higher load-bearing capacities.

Segment Insights:

Which Vehicle Type Dominated in 2024?

The two-wheeler tyres segment was the largest in the India tyre market, driven by the high ownership of scooters and motorcycles. The rising popularity of electric two-wheelers, supported by government incentives, further contributes to the market's expansion.

Which OEM and Replacement Segment Dominated in 2024?

The replacement tyre segment held the largest share, driven by the increasing awareness of vehicle maintenance and rising vehicle ownership. This segment is further boosted by organized retail chains and e-commerce platforms offering convenience to consumers.

Which Domestic Production and Imports Segment Dominated in 2024?

Domestic tyre production dominated the India tyre market, primarily driven by strong demand from the automotive sector, favorable government policies, and significant investments in manufacturing infrastructure.

Which Radial and Bias Tyres was Most Popular in 2024?

Radial tyres dominated the market due to their superior durability, fuel efficiency, and safety benefits, particularly in commercial vehicles. These tyres are preferred for their longer lifespan and ability to withstand heavy loads.

Which Tube and Tubeless Tyres was Preferred in 2024?

The tubeless tyre segment experienced strong growth due to its advantages in safety, fuel economy, and fewer punctures. Tubeless tyres are increasingly adopted in passenger cars and two-wheelers for smoother rides and better performance.

What is the Market Breakup by Tyre Size?

The India tyre market is segmented into small, medium, and large tyre sizes. The small tyre segment leads, driven by the high demand for two-wheelers and compact vehicles. The medium and large tyre segments cater to mid-sized and heavy-duty vehicles, with growing demand from commercial vehicles and the expanding logistics sector.

What is the breakup by Price Segment?

The market is divided into low-price tyre segment, medium-price segment as well as high-price segment. The low-price segment is characterized by affordability, catering primarily to two-wheelers and budget-conscious consumers. The medium-price segment serves mid-range vehicles, offering a balance between cost and performance, with a growing demand for durable and fuel-efficient tyres. The high-price segment, on the other hand, focuses on premium vehicles and electric vehicles (EVs), driven by the need for advanced technology, enhanced performance, and sustainability features, particularly in the EV market.

Regional Insights:

Region	Key Drivers	Market Characteristics	Major Cities/Hubs
West & Central India	Robust automotive manufacturing hubs; well-developed infrastructure; strong commercial vehicle presence	Dominates tyre market; supported by large production facilities and high commercial vehicle sales	Pune, Mumbai, Ahmedabad, Indore
North India	Rising vehicle ownership; increasing demand for replacement and OEM tyres; expanding road infrastructure	Growing market with strong demand from both passenger and commercial segments; e-commerce sector boosting logistics-related tyre demand	Delhi NCR, Chandigarh, Lucknow, Jaipur
South India	Rising vehicle sales; high demand for commercial vehicle tyres; expanding automotive hub status	Significant growth in passenger and commercial vehicle segments; presence of major automotive manufacturing and assembly plants	Bengaluru, Chennai, Hyderabad
East India	Expanding commercial vehicle market; increased infrastructure investment	Smaller market share but growing steadily; infrastructure projects creating demand for heavy vehicle tyres	Kolkata, Bhubaneswar, Patna

Who are the Top Companies in the India Tyre Market?

The India tyre market is highly competitive, with several established players dominating both OEM and replacement segments. Leading companies include:

Apollo Tyres Ltd
Bridgestone India Private Limited
CEAT Ltd
Continental Tyres
JK Tyre & Industries Ltd.
MRF Tyres
The Goodyear Tire & Rubber Company
Yokohama India Pvt Ltd

Recent News and Developments:

Carlyle Group acquired a controlling stake in a new entity formed from Highway Industries and Roop Automotives in February 2025, signaling growing investor interest in India’s auto sector.
CEAT acquired the Camso brand from Michelin for USD 225 Million in December 2024, aiming to expand its presence in the off-highway tyre segment for heavy-duty vehicles.
JK Tyre & Industries became the first Indian tyre manufacturer to join RE100, committing to sourcing 100% renewable electricity for its operations by 2050, in November 2024.
MRF launched its renowned Asia’s Finest Tyre and Wheel Care Service in Mumbai in October 2024, enhancing customer experience and vehicle performance.

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