Italy-based tyre manufacturer Pirelli has signed a strategic agreement with Mumbai-based Balkrishna Industries Ltd (BKT) to produce up to 800,000 premium car tyres in India by 2030. The partnership aims to tap the country's growing passenger vehicle market and rising demand for high-value tyres.
Under the agreement, BKT will manufacture Pirelli-branded premium car tyres at a newly constructed plant. The facility will use advanced technology and follow Pirelli's specified technological and quality standards.
The companies also plan to establish a 50:50 joint venture in the second phase. The proposed venture will build a dedicated facility to manufacture high-value car tyres under both brands, subject to certain conditions.
The planned facility will serve the Indian market and international markets. The agreement brings together Pirelli's technology and premium-market positioning with BKT's manufacturing capabilities and established industrial presence in India.
The partnership comes as India's passenger vehicle and premium tyre markets show strong growth potential. Car registrations in the country are estimated to grow by 5-7% annually between 2025 and 2030. Meanwhile, the premium car tyre market is projected to expand nearly fivefold.
These growth prospects offer opportunities for both companies as they look to strengthen their presence in the Indian automotive industry.
For Pirelli, the agreement marks a step toward expanding its manufacturing footprint in India. The company already has a commercial presence in the country but does not currently operate manufacturing facilities there. The partnership could help it serve a market where demand for high-value tyres is increasing.
Pirelli Executive Chairman Marco Tronchetti Provera said India is playing an increasingly important role in the global automotive industry's development. He added that the partnership would help Pirelli strengthen its position in a market with significant growth potential.
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For BKT, the agreement provides an opportunity to enter the passenger car tyre segment and expand beyond its established off-highway tyre business. The partnership could also create new opportunities in India and overseas markets.
BKT Joint Managing Director Rajiv Poddar said Pirelli's decision to partner with the company recognizes its manufacturing strength, quality, and expertise developed over several decades.
The agreement also reflects a broader opportunity for BKT to apply its manufacturing capabilities to a new product category. Working with Pirelli could help the company build its presence in the premium car tyre segment while supporting its expansion into new markets.
Pirelli Chief Executive Andrea Casaluci said the collaboration could create opportunities for both companies and contribute to the premiumization of India's tyre market.
The agreement will move forward in phases, with initial production handled by BKT at its newly constructed plant. The proposed 50:50 joint venture would follow in the second phase, subject to the agreed conditions.
The partnership positions both companies to pursue growth in India's premium tyre market while combining Pirelli's technology and brand positioning with BKT's manufacturing expertise.
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