India's tyre exports rise 9% to Rs. 25,051 crore (US$ 2.93 billion) in FY25 despite global headwinds

India’s tyre exports rose 9% YoY in FY25, reaching Rs. 25,051 crore (US$ 2.93 billion), despite trade policy uncertainties and global supply chain disruptions, according to the Automotive Tyre Manufacturers Association (ATMA). With an estimated annual turnover of Rs. 99,942 crore (US$ 11.67 billion), the Indian tyre industry is among the few manufacturing sectors with a high export-to-turnover ratio. Farm and OfftheRoad (OTR) tyres accounted for nearly 60% of the total export value. Indian tyres were exported to over 170 countries, with the United States (US) as the top destination (17%), followed by Germany (6%), Brazil (5%), the United Arab Emirates (UAE) (4%), and France (4%). The Chairman of the Automotive Tyre Manufacturers Association, Mr. Arun Mammen, highlighted that Rs. 27,000 crore (US$ 3.15 billion) has been invested across greenfield and brownfield projects over the past four years, reinforcing confidence in India’s economic trajectory.
ATMA stressed the need to accelerate domestic natural rubber production, as 40% of the industry’s natural rubber requirement is met through imports due to limited domestic supply. India’s tyre industry uniquely relies on natural rubber for 60% of its rubber consumption, unlike global trends where synthetic rubber dominates. The demand for natural rubber is expected to touch 20 lakh tonnes by 2030. To address the supply gap, ATMA, in collaboration with the Ministry of Commerce and Industry and the Rubber Board of India, has launched Project Indian Natural Rubber Operations for Assisted Development (INROAD). Backed by Rs. 1,100 crore (US$ 128.4 million) from four leading ATMA members, the project aims to bring two lakh hectares under natural rubber cultivation while enhancing infrastructure and skills in rubber-growing regions. Despite these steps, he noted that further intervention is essential to meet growing demand and boost exports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.