India’s tyre exports rose by 9 percent year-on-year to Rs 25,051 crore in fiscal 2025, demonstrating resilience amid global trade uncertainties and supply chain disruptions. The Automotive Tyre Manufacturers Association (ATMA) highlighted the sector’s robust growth, driven by significant investments totaling Rs 27,000 crore in recent years. However, the industry faces a critical bottleneck due to limited domestic natural rubber (NR) supply, with nearly 40 percent of demand met through imports. To secure sustainable growth and enhance export potential, ATMA, in collaboration with the Rubber Board of India, has launched Project INROAD aimed at boosting domestic NR production and infrastructure development.
Strong Export Performance Despite Headwinds
India’s tyre manufacturing sector continues to distinguish itself with remarkable export growth, registering a 9 percent increase in fiscal 2025 compared to the previous year. Total tyre exports reached Rs 25,051 crore, up from Rs 23,073 crore in FY24, according to data cited by the Automotive Tyre Manufacturers Association (ATMA).
This upward trajectory underscores the sector’s resilience despite challenges such as fluctuating trade policies and ongoing global supply chain disruptions. With a domestic annual turnover estimated at Rs 1 lakh crore, the industry maintains one of the highest export-to-turnover ratios among Indian manufacturing sectors.
Investment and Market Reach Signal Industry Confidence
ATMA Chairman Arun Mammen emphasized the sector’s confidence in India’s long-term economic prospects, noting that tyre manufacturers have collectively invested around Rs 27,000 crore over the past three to four years in both greenfield and brownfield expansions.
Indian tyres have a broad international footprint, exported to over 170 countries worldwide. Key markets include the United States, which accounts for 17 percent of export value, followed by Germany (6 percent), Brazil (5 percent), the UAE (4 percent), and France (4 percent). Notably, agricultural and off-the-road (OTR) tyres dominate exports, constituting nearly 60 percent of the total value.
Natural Rubber Supply Constraints Challenge Growth
Despite its export prowess, the Indian tyre industry grapples with a significant supply-side constraint: the limited availability of domestically produced natural rubber. Approximately 40 percent of the industry’s NR requirement is currently met through imports, as the majority of domestic production is consumed internally, leaving minimal surplus for export expansion.
This reliance on imported NR not only increases vulnerability to global price volatility but also limits the industry’s ability to scale production sustainably. Unlike global norms where synthetic rubber accounts for 60 percent of usage, India’s tyre manufacturing heavily depends on natural rubber, which comprises about 60 percent of raw material consumption—a reflection of its commitment to sustainability.
Project INROAD: A Strategic Initiative for NR Expansion
To address these supply challenges, ATMA, under the guidance of the Ministry of Commerce and Industry, has partnered with the Rubber Board of India to launch Project INROAD. This ambitious initiative aims to augment domestic natural rubber production by bringing two lakh hectares under NR plantation.
Backed by Rs 1,100 crore in funding from four leading ATMA member companies, Project INROAD focuses not only on plantation expansion but also on enhancing infrastructure and skill development within key rubber-growing regions across the country.
Outlook and Future Challenges
While Project INROAD represents a significant step forward, Arun Mammen cautions that substantial efforts remain essential to meet India’s projected NR demand, which is expected to reach 20 lakh tonnes by 2030. The tyre industry’s sustained growth and export competitiveness hinge critically on overcoming the raw material supply bottleneck.
Moreover, the sector’s potential for further export expansion will depend on continued focus on competitive pricing, stringent quality standards, international certifications, and enhanced branding strategies.
Conclusion
India’s tyre export sector stands at a pivotal juncture, marked by robust performance and substantial investment but constrained by natural rubber availability. Strategic interventions like Project INROAD are crucial to securing a sustainable supply chain, thereby enabling the industry to capitalize fully on global demand and reinforce its position as a vital contributor to India’s manufacturing and export landscape.
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