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Indian Tyre Exports Hit Record ₹27,312 Crore in FY2025-26 as Industry Expands Global Footprint
Indian Tyre Exports Hit Record ₹27,312 Crore in FY2025-26 as Industry Expands Global Footprint
Indian Tyre Exports Hit Record ₹27,312 Crore in FY2025-26 as Industry Expands Global Footprint
Quick Take
India's tyre industry achieved record exports of ₹27,312 crore in FY2025-26, a 9% rise over ₹25,057 crore in FY2024-25 — the second consecutive year of 9% growth. Despite US tariff headwinds, Indian manufacturers now export to more than 170 countries, backed by ₹30,000 crore in recent capacity investments and a rapidly diversifying global customer base.
India's tyre industry recorded ₹27,312 crore in exports during FY2025-26 — the highest export value in the sector's history.
₹27,312 Cr
Record exports in FY2025-26
9%
YoY growth — 2nd consecutive year
170+
Countries importing Indian tyres
₹30,000 Cr
Industry investment in last 4–5 years
India's tyre industry has continued its remarkable growth trajectory, achieving record exports of ₹27,312 crore during FY2025-26. According to data released by the Ministry of Commerce, exports rose by 9% compared to ₹25,057 crore in FY2024-25, marking the second consecutive year of 9% growth for the sector.
The achievement comes at a time when global trade continues to face significant challenges — including geopolitical tensions, volatile energy prices, shipping disruptions, inflationary pressures, and shifting trade policies in several key markets. Despite these headwinds, Indian tyre manufacturers have successfully strengthened their presence across international markets, reinforcing the country's position as a major global tyre manufacturing hub.
Consistent Growth Reflects Industry Resilience
The latest export figures highlight the resilience of India's tyre sector, which has steadily transformed from a largely domestic-focused industry into a globally competitive manufacturing powerhouse. Over the past decade, Indian tyre companies have invested heavily in technology, automation, research and development, and production capacity — enabling them to meet increasingly stringent international quality and safety standards.
This quality trajectory is also visible in the premium segment available to Indian consumers. Buyers of premium tyres from brands like Michelin directly benefit from international-grade manufacturing discipline. Our analysis on whether premium tyres are worth it in India explores exactly this connection.
Key insight: The 9% growth recorded in FY2025-26 is particularly significant given the uncertain economic environment faced by many export-oriented industries worldwide. It demonstrates the tyre sector's ability to adapt to changing market conditions while continuing to expand internationally.
United States Continues to Lead Despite Tariff Challenges
The United States remained the largest export destination for Indian tyres during FY2025-26, accounting for 15% of total export value — equivalent to ₹4,082 crore. However, the country's share declined from 17% in the previous fiscal year following significant changes to US trade policy.
Prior to August 2025
US tariff on Indian tyre imports: 25% — competitive access to the world's largest tyre market
August 2025
Tariffs doubled to 50% — major setback affecting pricing, demand, and profitability for exporters
February 2026
Tariff reduced to 18% — relief for exporters; shipments recovered strongly in final months of FY2025-26
Despite the tariff disruption, Indian exporters maintained a strong presence in the US market due to established supply chains, long-term customer relationships, and consistent product quality. The reduction in February 2026 restored confidence among manufacturers who rely on the US as a key export pillar.
Indian tyre manufacturers export to more than 170 countries, with the US, Germany, Italy, Brazil, and France among the top destinations.
Indian tyre manufacturers export to more than 170 countries, with the US, Germany, Italy, Brazil, and France among the top destinations.
Market Diversification Becomes a Key Growth Driver
One of the most important developments in recent years has been the industry's success in reducing dependence on a handful of export destinations. Indian tyre manufacturers now export to more than 170 countries, creating a broader and more balanced export portfolio.
Top Export Destinations by Share (FY2025-26)
USA
15%
Germany
7%
Italy
5%
Brazil
5%
France
4%
Beyond the top 5: Emerging markets across Latin America, Africa, Southeast Asia, and the Middle East continue to provide significant growth opportunities due to increasing vehicle ownership and expanding transportation infrastructure.
Massive Investments Strengthening Production Capacity
The industry's export growth has been supported by substantial investments in manufacturing capacity over the last several years.
₹30,000 Cr
Investment in greenfield & brownfield expansion over last 4–5 years
₹1 Lakh Cr
Estimated annual revenue of India's tyre industry
25%+
Share of total industry output contributed by exports
Greenfield projects have enabled companies to establish entirely new manufacturing facilities with modern production technologies, while brownfield investments have expanded and upgraded existing plants. These expansions also benefit Indian consumers directly — and for SUV owners looking to benefit from this manufacturing quality, our guide on Michelin tyres for Creta, Seltos, XUV700 and more is a useful reference.
Export vs Domestic: Industry Revenue Breakdown
| Metric | FY2024-25 | FY2025-26 | Change |
|---|---|---|---|
| Total exports | ₹25,057 crore | ₹27,312 crore | +9% |
| US market share | 17% | 15% | -2% (tariff impact) |
| Countries exported to | 160+ | 170+ | Expanding |
| Exports as % of revenue | ~24% | 25%+ | Growing |
| Industry annual revenue | ~₹1 lakh crore | Stable | |
Geopolitical Risks Continue to Influence Global Trade
Despite the record-breaking performance, challenges remain for Indian tyre exporters navigating a complex global environment.
Geopolitical Tensions
Ongoing tensions in West Asia continue to influence global energy prices and freight costs — directly impacting manufacturing and transportation expenses.
Shipping Disruptions
Disruptions in shipping routes lead to delays and increased logistics costs. While conditions have improved post-pandemic, global supply chains remain vulnerable.
Trade Policy Volatility
Manufacturers must navigate varying trade policies, tariff changes, and regulatory requirements across 170+ export markets — as the US tariff episode demonstrated.
Environmental Standards
European and North American markets increasingly evaluate suppliers on environmental performance alongside quality and pricing — raising the compliance bar.
Sustainability Becoming Increasingly Important
As international markets place greater emphasis on sustainability, Indian tyre manufacturers are investing in environmentally responsible production practices. Global buyers — particularly in Europe and North America — now evaluate suppliers on environmental performance alongside quality and pricing.
Renewable EnergyManufacturers are integrating solar and wind energy into production facilities to reduce carbon footprint.
Energy EfficiencyProcess optimisation and automation are reducing energy consumption per unit of output across production lines.
Water ConservationWater recycling and closed-loop systems are reducing freshwater consumption in tyre manufacturing.
Sustainable MaterialsIncreasing use of bio-based, recycled, and sustainable raw materials is reducing environmental impact across tyre compounds.
Indian tyre manufacturers are increasingly investing in renewable energy, water conservation, and sustainable materials to meet global environmental standards.
Positive Outlook for the Future
The Automotive Tyre Manufacturers' Association (ATMA) remains optimistic about the sector's future prospects. The industry body believes that ongoing trade negotiations, improving market access, stronger global supply chain integration, and continued investment in manufacturing capacity will support future export growth.
India's position as a cost-competitive manufacturing destination — combined with its growing reputation for quality and reliability — is expected to create new opportunities in both established and emerging markets. This quality trajectory is already visible in the premium segment. For buyers comparing top-tier options, our Michelin Primacy 4 ST vs Continental UC7 vs Yokohama BluEarth comparison shows what global manufacturing excellence looks like in practice.
India's tyre industry is world-class — and the best of it is available at your doorstep. Browse premium tyres from leading global brands at TyresNmore with expert guidance and doorstep fitment across India.
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FAQs
What were India's tyre exports in FY2025-26?
India exported tyres worth ₹27,312 crore during FY2025-26 — the highest export value ever recorded by the industry.
How much did exports grow compared to FY2024-25?
Exports increased by 9%, rising from ₹25,057 crore in FY2024-25 to ₹27,312 crore in FY2025-26.
Which country is the largest importer of Indian tyres?
The United States remains the largest export destination, accounting for 15% of total tyre export value (₹4,082 crore).
Why did exports to the US face challenges during the year?
The US increased tariffs on Indian tyre imports from 25% to 50% in August 2025. These tariffs were later reduced to 18% in February 2026, providing significant relief to exporters.
How many countries import tyres from India?
Indian tyre manufacturers currently export to more than 170 countries worldwide.
Which are the top export destinations after the US?
Germany (7%), Italy (5%), Brazil (5%), and France (4%) are among the leading markets for Indian tyre exports.
How much has the tyre industry invested in expansion?
Manufacturers have invested approximately ₹30,000 crore in greenfield and brownfield projects over the last four to five years.
What is the estimated size of India's tyre industry?
The industry's annual turnover is estimated at around ₹1 lakh crore.
What share of industry revenue comes from exports?
Exports now contribute more than 25% of the industry's total output.
What are the biggest challenges facing tyre exporters?
Key challenges include geopolitical tensions, fluctuating energy prices, shipping disruptions, supply chain uncertainties, and changing international trade policies.
What is the future outlook for Indian tyre exports?
The outlook remains positive due to capacity expansion, market diversification, growing global demand, and India's increasing integration into international supply chains. ATMA remains optimistic about sustained growth in the years ahead.
Final Word
The record export figure of ₹27,312 crore in FY2025-26 represents more than just another year of growth. It reflects the sector's transformation into a globally competitive manufacturing powerhouse capable of navigating trade disruptions, economic uncertainty, and geopolitical challenges.
Backed by significant investments, expanding production capacity, and a diversified export strategy spanning more than 170 countries, India's tyre industry has established a strong foundation for the future. For Indian consumers, this translates directly into better products, higher standards, and world-class options — available right at your doorstep through TyresNmore.
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