India Tyre Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The India tyre market attained a volume of190.54 Million Units in 2024. The rising demand for electric two-wheelers and fleet-integrated electric buses is compelling tyre manufacturers to develop low-resistance, high-durability tyres tailored to EV-specific torque and load dynamics. As a result, the market is expected to grow at aCAGR of 6.60%during the forecast period of 2025-2034 to reach a volume of361.04 Million Units by 2034.

The market dynamics is shaped by a wave of innovation and supportive government policies. As per industry reports, the Indian tyre exports recorded a turnover of over INR 23,073 crore in FY24, with a strong push from OEM and replacement demand. Government schemes like the Production Linked Incentive (PLI) for the auto sector and the National Electric Mobility Mission have invested major funds for tyre makers, especially those investing in smart manufacturing and EV-compatible tyres. The Ministry of Road Transport & Highways’ push to upgrade highways under the Bharatmala project is also increasing the demand for high-performance tyres.

A major trend in the India tyre market is the adoption of sustainable and smart tyre technologies. JK Tyre, for instance, offers 'Smart Tyre' with Treel sensors, offering real-time data on pressure, temperature and movement, positioning itself as a pioneer in connected mobility solutions. This tech-forward focus is vital, especially as fleet owners seek higher efficiency and data-driven performance from their tyre solutions.

Moreover, the country’s surge in automotive exports, especially to Africa and Southeast Asia, is contributing to rising demand for locally manufactured tyres. With rubber prices relatively stable and automation picking pace in domestic plants, tyre manufacturers in India are better placed to meet global quality benchmarks.

Key Trends and Recent Developments

May 2025

JK Tyre & Industries Ltd. started manufacturing the "UX Royale Green," a new passenger car tire, using sustainable materials certified by ISCC Plus. With this accomplishment, India's first passenger automobile tyre made from globally certified recycled and renewable raw materials is introduced. This marks a major sustainability milestone in the sector, encouraging B2B players to invest in ISCC Plus-certified materials for ESG-compliant procurement and brand positioning.

March 2025

CEAT introduced three new cutting-edge technologies for its SportDrive line, including a run-flat tyre and an ultra-high performance tyre. According to CEAT, these tyres have undergone extensive testing at cutting-edge laboratories in Germany. These reflect growing demand for performance tyres in India’s premium car market, pushing suppliers to align with global testing protocols and deliver export-ready innovations.

January 2025

In addition to introducing ContiSeal technology for increased tyre safety, Continental Tyres announced the release of the PremiumContact 6 (PC6) tyres, which feature cutting-edge technologies for better performance. Additionally, the firm displayed its Gen3 Truck Radial tires, increasing the range of commercial vehicle tires it offers in India. This launch highlights the expanding portfolio of safety-driven and commercial tyres in India, aligning with the country’s logistics boom and rising regulatory focus on vehicle safety.

April 2024

For the Passenger Vehicles category, Bridgestone India introduced the Bridgestone TURANZA 6i, a new generation tyre. The TURANZA 6i is the outcome of the Passenger Radial business's previously stated growth. The tyre, which was created especially for Indian roads, offers a very comfortable ride along with excellent wear life and fuel efficiency, making it a well-rounded premium product from Bridgestone. This development underscores the shift towards localisation in R&D, strengthening OEM partnerships and premium passenger vehicle tyre offerings in the domestic market.

Electrification of Mobility Demands New Tyre Innovations

The rapid penetration of electric vehicles (EVs) is encouraging manufacturers to rework their design and material strategies. EVs require tyres that support instant torque and lower rolling resistance. For example, in August 2022, Apollo Tyres launched EV-specific tyres with superior silica compounds. Moreover, under the FAME II scheme, 7.66 lakh electric vehicles have received financial support or subsidy from the government under this framework. Companies are already banking on this by investing in specialised EV-compatible manufacturing units, accelerating the India tyre market opportunities.

Automation and Smart Tyre Manufacturing Take Hold

Companies are pivoting towards Industry 4.0 technologies, leveraging robotics, IoT, and data analytics to reduce downtime and improve output. MRF and CEAT have begun integrating machine learning for predictive maintenance across plants. This push is driven in part by the Government of India’s “Make in India” and “Digital India” programmes, which provide infrastructural and financial support for manufacturing upgrades. For B2B buyers, this India tyre market trend translates to faster lead times, consistent quality and data-driven inventory planning. In an industry where precision equals profits, smart manufacturing is turning out to be an operational imperative.

Rise in Retreading Solutions for Commercial Vehicles

Cost efficiency is one of the top priorities for logistics firms and fleet operators, especially amid rising fuel and toll expenses. Tyre retreading, now more advanced and durable, is boosting the India tyre market development. For instance, JK Tyre scaled up its retreading centres across India, offering B2B contracts that reduce tyre lifecycle costs by a significant extent. This trend is particularly gaining traction in tier-II and III logistics hubs, where budget control often takes precedence. Smart retreading is emerging as a viable B2B value proposition.

Raw Material Diversification to Reduce Import Dependency

The volatility in natural rubber prices and import restrictions from ASEAN countries are pushing manufacturers to explore synthetic alternatives, boosting the India tyre market growth. The Rubber Board in India has backed R&D into bio-based polymers and EPDM (Ethylene Propylene Diene Monomer) compounds, which improve durability and reduce environmental footprint. In April 2024, a patent for a cross-linkable rubber composition including natural rubber, filler, and a resin composed of ethylene, acrylic ester, and maleic anhydride has been awarded to Apollo Tyres. Government incentives for localisation under the Atmanirbhar Bharat initiative are accelerating this transition. For bulk buyers, this trend indicates more sustainable sourcing with predictable costing, reducing dependency on imported raw material and buffering against forex-induced price spikes.

Integrated Logistics and Aftermarket Support Driving B2B Sales

B2B clients are increasingly demanding tyre packages including installation, tracking, maintenance, and warranty. Major manufacturers like Bridgestone India and Continental are offering integrated solutions with RFID tagging, mobile service vans, and predictive diagnostics. The Government’s push for unified logistics through the Gati Shakti National Master Plan is encouraging tyre companies to scale such services. For transporters and leasing firms, the shift from product to solution reduces downtime, improves asset utilisation, and ensures compliance.

India Tyre Industry Segmentation

The report titled “India Tyre Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Medium and Heavy Commercial Vehicle
• Two Wheelers and Three Wheelers
• Off Road
• Others

Key Insight:Passenger cars dominate the industry due to mass ownership and replacement cycles. LCVs are surging in demand owing to the e-commerce boom. Medium and heavy commercial vehicles stay crucial for long-haul logistics, requiring high-durability tyres. Two- and three-wheelers lead in volume, especially across tier-II cities and rural zones. Off-road tyres, though niche, are gaining ground in mining and agricultural applications.

Market Breakup by Design

• Radial
• Bias

Key Insight:The tyre market in India is divided primarily between radial and bias designs. Radial tyres dominate on-road applications, owing to their performance, efficiency, and regulatory support. Bias tyres, find stronghold in niche, rugged terrains like construction, mining, and farm use. While radial tyres are common across cities and highways, the bias category is gaining ground in tough-operating conditions. For B2B buyers, the design choice is less about trend and more about operational ROI, driving tailored procurement depending on load patterns, road conditions, and frequency of usage.

Market Breakup by Type

• Tube
• Tubeless

Key Insight:Tyre types in India are split across tubeless and tube variants, each with distinct B2B appeal. Tubeless tyres lead in performance, safety, and fleet reliability, especially in highway and urban operations. Tube tyres persist in cost-sensitive and rural markets, where ruggedness and affordability matter more than features. While the broader trend favours tubeless technology, tube tyres have remained relevant in the India tyre industry. For bulk buyers, the choice often hinges on road conditions, servicing infrastructure, and vehicle age.

Market Breakup by Tyre Size

• Small
• Medium
• Large

Key Insight:As far as the size dynamics is concerned, the market observes application-specific demand rising across categories. Small tyres have continued to be relevant due to mass two-wheeler and budget-car usage, mostly in rural belts and low-income urban zones. Medium-sized tyres dominate commercial transport due to balance between durability and cost, making them ideal for logistics and mid-load applications. Large sizes are expanding fast in terms of tyre market share in India, owing to the increased demand from construction, mining, and industrial fleets. Their enhanced builds, including smart and self-cooling variants, are becoming attractive for B2B buyers facing rugged terrain conditions.

Market Breakup by Price Segment

• Low
• Medium
• High

Key Insight:By price is the market clearly segmented by value perception and end-use purpose. Low-price tyres continue serving cost-sensitive markets, particularly in rural transport and legacy fleet operators where basic utility is preferred to longevity. Medium-priced category accelerate majority of the tyre consumption in India as they provide the right balance of reliability, warranty support, and evolving technology integration without straining budgets. Meanwhile, high-priced tyres are scaling fast, led by electric mobility, long-haul fleet operations, and government-driven performance mandates.

Market Breakup by Distribution Channel

• OEMs
• Replacement

Key Insight:Distribution channels are boosted by operational lifecycle and end-user sophistication. Replacement remains dominant, supported by the ageing vehicle stock and intense road usage that triggers high wear. B2B clients in state transport and mid-sized logistics now prefer structured replacement cycles, often under warranty or leasing contracts. On the other hand, OEMs are experiencing accelerated growth in the India tyre market with the rise of electric and connected vehicle manufacturing. Tyre makers are aligning with EV OEMs to pre-fit smart, sensor-rich tyres tailored to specific vehicle AI.

Market Breakup by Region

• North Region
• South Region
• East Region
• West Region

Key Insight:Regionally, the demand in the Indian market is shaped by industrial concentration, infrastructure maturity, and fleet diversity. The southern region leads the market due to strong OEM presence and EV innovation, with brands experimenting with digital tracking and low-noise tyre technology. Northern India sustains growth via logistics corridors but witnesses more conventional tyre usage. The east remains steady, driven by mining-centric demand requiring durable large tyres. Western India is growing at a fast pace, boosted by smart infrastructure projects and port logistics, which demand performance tyres with sensor-based durability checks.

India Tyre Market Share

By Vehicle Type, Passenger Car Account for the Dominant Share of the Market

Passenger cars, which represent the dominant share in the market, is supported by both OEM and replacement demand. As per industry reports, India produced 58 million units of tyre for this category, and the trend is driven by urbanisation and mid-income car ownership. Tyre players are focusing on noise-reduction and performance-oriented tread patterns, especially in premium hatchbacks and sedans. For example, CEAT’s SecuraDrive and Apollo’s Amazer range are tailored to high-speed urban roads. With India's auto exports picking up pace, tyre firms are aligning with global quality benchmarks like EU labelling norms. Furthermore, the push for safer tyres, under AIS-142 standards by the government, is pushing innovation in tread design and wet grip for this segment.

Light Commercial Vehicles (LCVs) emerge to be the fastest-growing vehicle type in the tyre market in India. The rise in last-mile delivery, e-commerce logistics, and intercity goods movement are boosting demand for high-durability LCV tyres. In June 2024, JK Tyre launched ‘Jetway JUM’, a radial tyre tailored for city logistics. Government schemes such as PM Gati Shakti and Startup India are fuelling MSMEs in logistics, indirectly accelerating LCV tyre demand.

By Design, Radial Tyres Dominate the Indian Market

Radial tyres hold the dominant share in the market. These tyres offer better fuel efficiency, longer tread life, and reduced heat generation. Manufacturers like MRF and Michelin India are investing heavily in radial tyre capacity, particularly for trucks and buses. The government’s regulation to phase out bias tyres in new commercial vehicles has boosted radial adoption. Further, the increased preference for long-distance cargo and intercity mobility has made radial tyres the primary choice.

As per the India industry report, bias tyres are witnessing renewed growth in specific B2B verticals like agriculture, mining, and construction. Their rugged build and low initial cost make them suitable for off-road environments with high impact and irregular terrain. The Government of India’s infrastructure push via the Bharatmala project and mining auctions has opened fresh demand for bias tyres. Players like BKT and TVS Eurogrip are innovating in tread depth and casing resilience for these applications.

By Type, Tubeless Tyres Account for the Largest Share of the Market

Tubeless tyres have become the dominant choice for both OEMs and fleet operators due to their lower puncture risk and longer lifespan. They offer superior safety and are particularly favoured in highways and long-distance logistics. With Indian roads improving and vehicle speeds rising, tubeless tyres have gained traction. Brands like Bridgestone and Apollo have expanded their tubeless offerings across commercial fleets. The government’s push for road safety under the National Road Safety Policy has further propelled the India tyre market expansion.

Despite the dominance of the tubeless category, tube tyres continue to observe growth in rural mobility and budget commercial applications. They are easier to manufacture, cheaper to replace, and hence, they continue to be dominant in tractors, old-model LCVs, and government tenders. State-run rural transport schemes and agricultural credit financing have also supported their use in semi-urban regions. Their lower upfront cost makes them appealing for buyers focused on affordability over technology.

By Tyre Size, Medium Tyres Occupy a Significant Share of the India Tyre Market

Medium-sized tyres are seeing strong adoption in India’s mid-duty commercial vehicles, driven by expanding logistics networks and the surge in rural and urban goods movement. The recent shift toward smart radial tyres in 16-20-inch range, embedded with RFID tags for fleet-level tracking has resulted in the category’s continued dominance. JK Tyre's May 2025 launch of AI-powered smart tyres for passenger cars, linked directly with their mid-size tyre models, is gaining strong interest from logistics fleet operators. OEMs are also tuning vehicle platforms around this category to allow real-time tread data access. This trend is creating a unique space where technology meets tyre wear optimisation, especially in fleet-heavy zones like Punjab, UP and Maharashtra.

The country’s high demand for construction, mining, and high-tonnage vehicles has made large-sized variants heavy demand in the India tyre market. Innovations like nitrogen-inflated tyre systems in 22.5-inch and above tyre categories are gaining rapid popularity. BKT and Apollo Tyres have been testing graphene-infused compounds in these tyres for better wear resistance and fuel efficiency. With infrastructure-heavy projects like Bharatmala and Smart City programmes picking up pace, large tyres equipped with pressure monitoring sensors and self-cooling technology are becoming a B2B procurement preference. Fleets in Rajasthan and Odisha, where extreme terrain impacts tyre life, are turning to these enhanced builds for longer lifecycle assurance.

By Price Segment, Medium Price Tyres Secure the Bigger Share of the Market

Mid-priced tyres are striking the right balance between affordability and high-performance metrics. Their dominance is being bolstered by rising demand from Tier 2 and Tier 3 fleet operators who seek durability without high investment. Companies like CEAT and MRF are bundling these tyres with basic telematics offerings. In addition, the rise of tyre-as-a-service models across mid-size transport businesses is lending scalability to this category.

High-end tyres have led to increased sales due to electric buses, high-speed luxury fleets, and long-haul container logistics, as per the India tyre industry report. Leading players are developing high-silica blends for extreme road grip and energy efficiency. Tyre brands are partnering with OEMs to embed IoT into premium tyre models, delivering live updates on tyre stress and real-time inflation. B2B buyers in sectors like tech-parks and government bus fleets are increasingly prioritising these top-tier offerings. Apollo and Continental are also offering dynamic load-balancing systems integrated into tyres, making them ideal for safety-intensive applications in metro cities.

By Distribution Channel, the Replacement Category Clocks in the Major Market Share

Replacement tyres account for the maximum share in the Indian market revenue as ageing fleets and used vehicles remain central to mobility in mid and low-income zones. B2B buyers, such as state transport bodies and independent logistics companies, are leaning towards structured replacement contracts bundled with warranty analytics. Meanwhile, re-treading services bundled with replacements in commercial vehicles are creating a lifecycle value. The opportunity lies in subscription-based tyre maintenance models that are being increasingly launched in Tamil Nadu and Gujarat.

OEMs are seeing a spike in tyre procurement in India, especially as electric and hybrid vehicle production rises. Tyre manufacturers are collaborating closely with EV OEMs to engineer lightweight, high-load endurance tyres with ultra-low rolling resistance. Startups like Pirelli are entering this space with custom-designed OEM tyres featuring noise-cancellation layers and bio-sourced rubber compounds. OEM tie-ups, particularly in Karnataka and Maharashtra, are focused on co-developing smart tyres that respond to vehicle AI, offering real-time feedback on performance metrics.

India Tyre Market Regional Analysis

South Region Holds the Leading Position in the Market

The South Indian market boasts of states like Tamil Nadu and Karnataka that lead to the region’s dominance due to their strong OEM manufacturing hubs and the rise of EV-centric industrial belts. Moreover, the integration of green tyres in fleet transitions has accelerated demand in this particular region. Brands are leveraging the proximity to technology clusters to offer tyres embedded with RFID and blockchain-backed service records.

The western region, particularly Gujarat and Maharashtra, boosts the India tyre demand growth with the surge in port connectivity, warehousing expansion, and smart infrastructure projects. The demand for long-haul radial tyres with quick-replace modular features is surging. Companies like TVS Eurogrip are also introducing quadrazone compound technology features 4 zones of compound working together to ensure optimal dynamical performances and extended tyre durability.

Competitive Landscape

The India tyre market players like MRF, Apollo, and JK Tyre are shifting focus toward digital integration, offering B2B clients predictive analytics, subscription-based tyre monitoring, and data-driven warranties. There is also a notable surge in collaborations with EV and smart vehicle OEMs to co-develop sensor-laced tyres that communicate directly with vehicle control systems. While the replacement market continues to be dominant, players are finding margin advantages in bespoke service models for fleet operators.

New age India tyre companies are entering with AI-powered re-treading diagnostics and blockchain-enabled supply chain tracking. Export opportunities via ports like Mundra are also attracting global partnerships. The next phase of competition is expected to revolve around sustainability metrics and embedded technology. Moreover, sensor-integrated tyres, AI-backed replacement cycles, bio-based compounds, graphene treading, and blockchain for tyre traceability are some of the key trends that companies can focus on, in the coming years.

MRF Limited

MRF Limited, headquartered in India and founded in 1946, offers a diverse range of tyres catering to various types of vehicles, including heavy and light commercial vehicles, passenger cars, tractors, earthmovers, and motorsport vehicles. Some of its key brands include MUSCLE LIFT, STEEL MUSCLE, SHAKTI LIFE, SHAKTI SUPER, SUPER LUG, and SAVARI, among others.

Apollo Tyres Ltd

Established in 1972 and based in Haryana, India, Apollo Tyres Ltd is a prominent player in the tyre industry, manufacturing and distributing quality tyres worldwide. Its product line includes several renowned brands such as ALNAC, AMAZER, APTERRA, ASPIRE, ALTRUST, MANCHESTER UNITED, and QUANTUM.

CEAT Limited

Headquartered in India and founded in 1858, CEAT offers a comprehensive selection of tyres suitable for all types of vehicles, ranging from heavy-duty trucks and buses to light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles, scooters, and even auto-rickshaws. The company is committed to producing top-quality tyres for cars, bikes, and scooters.

JK Tyre & Industries Ltd.

Headquartered in India and founded in 1951, the company has introduced innovative 'Smart Tyre' technology in India, with Tyre Pressure Monitoring Systems (TPMS) and TREEL Sensors that enable real-time monitoring of a tyre's critical parameters, such as pressure and temperature.

Other key players in the market are Birla Tyres, Balkrishna Industries, TVS Srichakra, and Goodyear India, among others.

Key Highlights of the India Tyre Market Report:

• Forecast-driven insights extending through 2034, shaped by mobility transitions, import-export policy changes, and OEM-supplier realignments.
• Key product developments include chip-embedded smart tyres, all-weather radial ranges, and self-sealing technologies targeting both premium and commercial categories.
• Competitor benchmarking covering MRF, Apollo, CEAT, and expanding foreign brands investing in capacity and domestic partnerships.
• Zonal demand shifts observed in tier-II and tier-III cities, aligned with aftermarket growth and infrastructure-led freight movement.
• Forward-looking market view focused on ESG-compliant sourcing, carbon-neutral manufacturing goals, and performance-based tyre labelling standards.

Why Rely on Expert Market Research?

• Specialised analysts with deep-rooted expertise in India’s automotive and rubber components supply chain.
• Advisory-grade intelligence crafted to assist procurement teams, OEM strategists, and policy stakeholders.
• On-ground research supported by port-level trade analysis, raw material pricing models, and industry interviews.
• Insights tailored to dynamic shifts in regulatory frameworks, tech integration, and demand cycles across mobility verticals.