India's Tyre Export Market Grows 9% in FY25 to Rs 25,051 Crore

India's tyre exports registered a good 9 per cent year-on-year growth in FY25 at Rs. 25,051 crore amid indiscriminate global trade chaos and supply chain disruptions, the Automotive Tyre Manufacturers Association (ATMA) said. This is against Rs. 23,073 crore in the last fiscal, as per Ministry of Commerce figures.

ATMA emphasized the fact that the tyre sector continues to demonstrate robust resilience in the aftermath of COVID and has remained a high-performing sector in Indian production. Having a rough estimate of Rs. 1 lakh crore annual turnover and over Rs. 25,000 crore worth of exports, tyres are exceptional in their export-turnover ratio.

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Nearly 40% of the natural rubber (NR) demand of the tyre industry is met through imports these days due to low domestic supply. ATMA called for an imperative requirement of higher domestic NR production through certain policy interventions. "There is an urgent need to bridge the natural rubber gap to facilitate tyre production scaling up and export," ATMA Chairman Arun Mammen said.

India supplies tyres to more than 170 nations, among which the US has 17% value market share of exports, followed by Germany (6%), Brazil (5%), UAE (4%), and France (4%). Farm and off-the-road (OTR) tyres dominate the segment-wise value of exports, collectively contributing to nearly 60% of the overall value.

For augmenting local NR availability, the industry has initiated Project INROAD in association with the Rubber Board of India. With funding assistance from Rs. 1,100 crore offered by four of ATMA's prime members, the project is aimed at 2 lakh hectares of new plantations of NR, and there is additional assistance extended to infrastructure and vocational training.

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Mammen added that although these measures are welcome, much more remains to be done to achieve the approximated NR requirement of 20 lakh tonnes by 2030.