India Advanced Tyre Market – Industry Size, Share, Trends, Opportunity, and Forecast, By Vehicle (On-Highway Vehicle and Off-Highway Vehicle), By Tyre (Run-Flat, Airless and Pneumatic), By Material (Natural Rubber, Synthetic Rubber, Steel, Elastomers and Others), By Region & Competition, 2021-2031F

Market Overview

The India Advanced Tyre Market was valued at USD 277.52 million in 2025 and is expected to reach USD 387.03 million by 2031 with a CAGR of 5.70% during the forecast period. The India Advanced Tyre Market is witnessing significant evolution as consumers and fleet operators increasingly prefer technologically enhanced products. This transformation is shaped by the rising focus on safety, performance, and sustainability in tyre manufacturing. As vehicle parc expands, the replacement cycle for tyre shortens, fueling consistent demand. The market is benefiting from the introduction of smart tires equipped with sensors that monitor pressure and tread depth, supporting proactive maintenance. Growing adoption of electric vehicles is further influencing tire design and materials, with manufacturers innovating to offer low-noise, high-durability solutions.

The market’s momentum is driven by stricter regulatory norms around fuel efficiency and emissions, prompting automakers and suppliers to integrate low rolling-resistance and lightweight tyres. According to the Bureau of Energy Efficiency, tire rolling resistance can impact vehicle fuel consumption by up to 20%, making it a priority area for optimization. Another catalyst is the surging demand for premium vehicles with superior ride quality, requiring high-performance tires that balance comfort and safety. Sustainability is reshaping purchasing decisions as consumers embrace products made with recycled or renewable materials. Radialization trends are transforming the commercial vehicle segment, reflecting a shift away from conventional bias-ply products.

While opportunities are abundant, the market faces challenges, such as fluctuations in natural rubber prices and rising costs of advanced raw materials. Manufacturers must also navigate evolving consumer expectations for longer-lasting tires without compromising safety. High initial costs associated with smart and specialty tires could limit adoption among price-sensitive buyers. The lack of standardized infrastructure for tire recycling and disposal further constrains sustainability efforts. As India pushes toward electrification and stricter performance norms, companies will need to scale up investments in R&D and adapt manufacturing processes to meet the emerging requirements.

Market Drivers

Growing Vehicle Production

India’s rising automotive production fuels consistent demand for advanced tires across segments. According to SIAM, over 25 million vehicles were produced in FY2023, reflecting robust growth in passenger cars, commercial vehicles, and two-wheelers. This expanding vehicle base increases both original equipment (OE) and replacement demand. As manufacturers ramp up capacity to serve domestic and export markets, the need for technologically superior tires with enhanced durability and performance becomes critical. Advanced tires help OEMs meet stringent fuel efficiency and emissions targets while improving ride comfort. Increased radialization in trucks and buses further boosts demand for specialized products. The production surge underpins opportunities for suppliers to innovate and cater to diverse applications ranging from premium passenger vehicles to heavy-duty fleets.

Emphasis on Fuel Efficiency

The Indian government’s focus on reducing vehicular emissions has encouraged adoption of low rolling-resistance tyres. According to the Bureau of Energy Efficiency, rolling resistance contributes up to 20% of a passenger car’s fuel consumption. Advanced tyres with optimized tread patterns and innovative rubber compounds reduce energy loss and enhance fuel economy. Fleet operators recognize the long-term cost benefits of such products, especially in logistics where fuel is a major expense. As more consumers seek fuel savings, tire manufacturers are investing in R&D to develop products that exceed regulatory standards. This shift aligns with India’s commitment to carbon reduction and sustainability, positioning fuel-efficient tires as a key driver of market growth.

Rising Radialization

Radialization, particularly in commercial vehicles, is transforming the market landscape. According to IRMRA, radialization rates in truck and bus segments surpassed 55% in 2023. Radial tyres offer advantages such as lower heat build-up, improved fuel efficiency, and longer life compared to bias-ply alternatives. Their superior performance in high-load applications makes them essential for fleets prioritizing operational efficiency. As logistics and e-commerce expand, demand for radial tires with enhanced durability and retreadability will continue to rise. This trend supports innovation in tread design and materials tailored for Indian road conditions, reinforcing radialization as a core growth driver in the coming years.

Sustainability Initiatives

Consumers are increasingly valuing products with a lower environmental footprint. The Automotive Tyre Manufacturers’ Association reports growing investments in sustainable materials and processes. Tyres incorporating renewable or recycled content are gaining traction among environmentally conscious buyers. Government policies encouraging waste management and circular economy practices further support this trend. Companies developing low-emission production techniques and greener materials can capture premium segments and strengthen brand reputation. Sustainability also extends to performance, as advanced tires enhance fuel efficiency, contributing indirectly to emissions reduction. This convergence of environmental responsibility and consumer preference is a pivotal market driver.

Emerging Electric Vehicle Adoption

The accelerating shift to electric mobility is reshaping tire requirements. EVs generate instant torque and typically weigh more than conventional vehicles, creating new challenges in wear resistance and noise control. Advanced tires engineered for EVs feature specialized compounds and optimized sidewalls to handle these stresses. The need for low rolling resistance is even greater in EVs to extend driving range. As India targets 30% EV penetration by 2030, the demand for such specialized tyres will rise sharply. Manufacturers with EV-ready portfolios will be well-positioned to capitalize on this transition, making electrification a strategic driver of growth.

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Key Market Challenges

Fluctuating Raw Material Prices

One of the primary challenges for India’s advanced tyre market is the volatility in raw material costs. Natural rubber prices, influenced by global supply dynamics, currency fluctuations, and weather patterns, can swing sharply, affecting production economics. Synthetic rubber and specialty chemicals, derived from crude oil, are also susceptible to price variability driven by global geopolitical events and energy markets. Tire manufacturers must navigate these uncertainties while maintaining price competitiveness. Sudden cost spikes can squeeze margins, especially for producers catering to the price-sensitive Indian market. Securing stable supply contracts and exploring alternative raw materials are strategies adopted to mitigate these risks. However, achieving consistency in material quality while managing costs remains a persistent challenge for the industry.

Consumer Price Sensitivity

While demand for advanced tires is rising, Indian consumers remain highly cost-conscious. Many vehicle owners prioritize upfront price over long-term benefits like fuel savings or extended tire life. High-performance tires with features such as low rolling resistance, sustainable materials, or smart sensors often carry a premium price tag. Convincing buyers to invest in these advanced solutions is challenging, particularly in mass-market segments. Fleet operators, though focused on total cost of ownership, may also hesitate to adopt pricier products unless savings are clearly demonstrated. Balancing innovation with affordability is crucial for market penetration. Manufacturers must find ways to reduce costs through scale, localized production, or technology partnerships to make advanced products viable in a value-driven market.

Limited Infrastructure for Recycling

India faces infrastructure gaps in tire recycling and proper disposal. While sustainability is gaining momentum, organized collection and recycling systems remain underdeveloped. According to ATMA, only a fraction of discarded tires are recycled through formal channels, with many ending up in unregulated markets or being burned, contributing to pollution. The lack of established recycling plants limits manufacturers’ ability to close the loop on sustainability initiatives. Regulatory clarity on extended producer responsibility (EPR) exists but enforcement varies across regions. This challenge constrains manufacturers eager to market sustainable tires and hampers progress toward circular economy goals. Industry stakeholders are calling for stronger policy frameworks and investment in recycling technology to bridge this gap.

Technology Adoption in Manufacturing

Integrating advanced manufacturing technologies, such as automation, precision mixing, and digital quality control, poses hurdles for many tire producers in India. High capital investment, workforce training needs, and operational disruptions deter rapid adoption. Smaller manufacturers, in particular, struggle with the financial burden of upgrading facilities to produce high-specification tires. Advanced tire designs, including low rolling resistance or EV-specific products, demand precise process controls and new machinery. The gap in technical know-how can slow the industry’s ability to compete globally and meet evolving customer expectations. Bridging this technology divide is essential to ensure that Indian-made tires align with modern performance standards and export quality requirements.

Regulatory Compliance Complexity

Regulatory standards governing tire performance, safety, labeling, and sustainability are evolving rapidly in India. New rules on rolling resistance, wet grip, and noise levels are being introduced to align with global norms. While these regulations drive market quality upward, they also create compliance challenges. Manufacturers must invest in rigorous testing, certification, and product redesigns, adding to costs and development timelines. Variations between domestic and export market standards further complicate production planning. Non-compliance risks product recalls, fines, and reputational damage. Smaller players may find it particularly difficult to keep pace with changing requirements, potentially consolidating market share among larger, better-resourced firms.

Key Market Trends

Smart Tyre Integration

Tires are transforming from passive components into smart devices capable of delivering real-time data. Embedded sensors now monitor parameters like temperature, air pressure, and tread wear. Fleet operators gain predictive maintenance capabilities, reducing downtime and operational costs. Passenger vehicle owners benefit from enhanced safety and performance insights. As digital mobility solutions expand, smart tires will integrate with vehicle telematics, enabling alerts and service scheduling. While adoption in India remains nascent, interest is growing, driven by connected vehicle trends and the rising sophistication of consumer expectations. Challenges include sensor durability under Indian road conditions and achieving cost-effective production for mass segments. Nevertheless, smart tires represent a significant innovation wave reshaping product differentiation and value propositions.

Sustainable Materials and Green Manufacturing

Environmental sustainability is influencing tire production across the industry. Manufacturers are incorporating renewable materials such as bio-based rubbers, silica from rice husk ash, and recycled rubber compounds. According to ATMA, sustainable manufacturing is gaining prominence due to regulatory pressures and consumer awareness. Energy-efficient processes, water conservation, and reduced carbon emissions form core parts of manufacturers’ sustainability roadmaps. India’s environmental policies are nudging manufacturers toward greener practices, including the upcoming mandates on tire recycling. Companies positioning themselves as sustainable brands can attract premium buyers and enhance export competitiveness. While challenges around costs and scalability persist, sustainability remains a compelling trend driving R&D and brand differentiation in the advanced tire segment.

Growth in Electric Vehicle Specific Tyres

The rapid growth of EVs is driving demand for specialized tires. Electric vehicles exert higher torque and often weigh more, necessitating unique tire designs. Manufacturers are developing low rolling resistance tires that extend EV range while maintaining grip and durability. Noise reduction is also a key focus, as electric drivetrains operate quietly, making road noise more noticeable. According to India’s Ministry of Heavy Industries, the country targets 30% EV adoption by 2030, which will require significant advancements in tire technology. EV-specific tires are expected to proliferate across both passenger and commercial segments. This trend is propelling R&D investments and collaborations, ensuring tire designs meet the evolving needs of electric mobility.

Focus on Retreadable Tyres

Economic pressures and sustainability goals are reviving interest in retreadable tyres, especially in commercial segments. Retreading extends tire life, lowers fleet costs, and conserves raw materials. As fuel costs and operational expenses rise, logistics companies are increasingly opting for retreaded solutions. Advances in retread technology improve safety, performance consistency, and appearance, boosting confidence among users. Government policies promoting circular economy practices add momentum to this trend. While retreading remains primarily associated with commercial vehicles, interest is expanding into specialty segments like off-highway equipment. The growth of organized retreading facilities and quality certification standards will be crucial to maintaining product trust and market expansion.

Digital Sales and Consumer Engagement

Digitalization is transforming how consumers research and purchase tires. E-commerce platforms, company websites, and digital retail apps offer detailed product comparisons, reviews, and doorstep fitting services. Urban consumers, in particular, are shifting toward online channels for convenience and transparency. Manufacturers are investing in virtual showrooms, augmented reality tools, and AI-powered recommendation engines to engage buyers. This trend is especially relevant for advanced tire products, where technical features require clear explanations to justify premium pricing. Digital engagement also facilitates direct feedback loops, shaping product development. As internet penetration rises and consumer behavior evolves, digital channels will play a pivotal role in the advanced tire market’s growth trajectory.

Segmental Insights

Vehicle Insights

The India Advanced Tyre Market encompasses diverse vehicle categories, reflecting distinct performance requirements and technological preferences. On-highway vehicles, including passenger cars, two-wheelers, trucks, and buses, form a significant share of demand for advanced tires. These vehicles require products optimized for safety, fuel efficiency, and ride comfort. Manufacturers develop specialized tread designs, low rolling resistance compounds, and noise-reduction features tailored for urban and highway conditions. The growing preference for radial tires among commercial fleets reflects the need for higher durability, longer tread life, and improved fuel economy. As vehicle owners become increasingly conscious of sustainability and total cost of ownership, advanced tires equipped with smart features and sustainable materials are gaining traction in on-highway applications.

Off-highway vehicles, such as agricultural tractors, earthmoving equipment, mining trucks, and industrial machines, create a parallel but equally critical segment. These applications demand tires engineered to withstand harsh operating conditions, heavy loads, and abrasive surfaces. Performance parameters like cut resistance, heat dissipation, and traction are vital in these sectors. Advanced off-highway tires incorporate reinforced sidewalls, specialized compounds, and unique tread patterns to deliver superior durability and operational safety. The modernization of Indian agriculture and infrastructure projects fuels demand for technologically sophisticated off-highway tires. Operators seek solutions that reduce machine downtime, enhance productivity, and lower maintenance costs. Retreadability is a valued feature, particularly in sectors where cost efficiency drives purchasing decisions.

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Region Insights

In 2025, The North region stands out as a crucial market for advanced tires in India due to its significant automotive base and diverse vehicular demand. This region encompasses major urban centers and extensive highway networks that see heavy traffic from both passenger vehicles and commercial fleets. Urbanization, coupled with economic development, has increased vehicle density, prompting higher demand for technologically superior tires that enhance safety and driving comfort. Roads in North India range from smooth expressways to rugged rural paths, driving the need for tires that offer both durability and performance. Advanced tire solutions tailored to varying terrains help reduce maintenance intervals, ensuring uninterrupted mobility for commercial operators and private consumers alike.

Industrial growth and construction activities contribute significantly to the off-highway vehicle segment in the North. Infrastructure development projects create demand for specialized tires capable of handling heavy machinery, earthmoving equipment, and transport vehicles operating under severe loads and environmental stress. As government spending on infrastructure remains robust, tire manufacturers continue innovating to supply products with enhanced heat resistance, cut protection, and longer operational lifespans. In the agricultural sector, the North’s prominence as a major farming region generates steady demand for advanced agricultural tires. Farmers increasingly look for tires that improve traction, reduce soil compaction, and deliver greater fuel efficiency for tractors and other machinery.

East India’s advanced tyre market is growing steadily, fueled by expanding infrastructure, rising vehicle ownership, and increased demand for durable, high-performance tyres suitable for varied road conditions. Urbanization in cities like Kolkata and industrial activity in states like Odisha and Jharkhand drive both OEM and replacement demand. Consumers increasingly prefer radial and tubeless tyres for better fuel efficiency and safety. However, challenges remain in distribution reach and price sensitivity among rural users, shaping market strategies for manufacturers.

Recent Developments

• In May 2025, Rubber King announced the expansion of its product portfolio by unveiling a new range of pneumatic tires at LogiMAT India 2025. The launch targets applications in material handling and warehousing equipment, enhancing durability and load-carrying capacity. These tires feature advanced rubber compounds designed for longer service life under demanding industrial operations. The move signals Rubber King’s strategic push into specialized segments within the Indian advanced tire market.
• In May 2025, JK Tyre launched India’s first passenger car tire incorporating ISCC PLUS-certified sustainable materials. The innovation uses bio-based and recycled materials to reduce the environmental footprint of tire manufacturing. This milestone reflects a growing shift toward sustainability in the advanced tire market. JK Tyre positions the product as part of its long-term commitment to green technologies and circular economy practices.
• In June 2024, JK Tyre announced the launch of next-generation tires for commercial vehicles, expanding its product lineup to meet modern transport demands. The new tires feature enhanced tread designs for superior grip, reduced rolling resistance, and longer life cycles. These products aim to support fleet operators in lowering fuel costs and improving operational efficiency. The launch underscores JK Tyre’s focus on innovation in the advanced tire segment.
• In October 2024, Michelin revealed plans for the next phase of its Indian strategy, focusing on tubeless truck radial tires. The company highlighted tubeless technology as a solution for improving fuel efficiency, load capacity, and operational safety in India’s commercial vehicle sector. These tires are engineered to deliver superior heat resistance and lower rolling resistance. Michelin’s investment reflects growing market demand for advanced radial products in heavy-duty applications.

Key Market Players

• Apollo Tyres Ltd.
• Bridgestone Corporation
• Continental AG
• Goodyear Tire & Rubber Company
• Kumho Tire Co. Inc.
• Michelin Group
• MRF Limited
• Pirelli & C. S.p.A.
• Sumitomo Rubber Industries Ltd
• Yokohama Rubber Company Limited

Report Scope:

In this report, the India Advanced Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         India Advanced Tyre Market, By Vehicle:

o    On-Highway Vehicle

o    Off-Highway Vehicle

·         India Advanced Tyre Market, By Tire:

o    Run-Flat

o    Airless

o    Pneumatic

·         India Advanced Tyre Market, By Material:

o    Natural Rubber

o    Synthetic Rubber

o    Elastomers

o    Others

·         India Advanced Tyre Market, By Region:

o    North

o    South

o    West

o    East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Advanced Tire Market.

Available Customizations:

India Advanced Tyre Market report with the given market data, TechSci Research, offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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