India Agriculture Tire Market By Vehicle Type (Tractors, Combine Harvesters, Trailers, Others) By Demand Category (OEM Vs. Aftermarket), By Regional, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India Agriculture Tire Market has valued at USD 1.2 Billion in 2024 and is anticipated reach USD 1.6 Billion by 2030, Growing with a CAGR of 5.75%. The agricultural tire market in India is experiencing robust growth, driven primarily by the increasing mechanization of farming operations. As a predominantly agrarian country, India exhibits a significant demand for high-performance tires that cater to a wide range of agricultural machinery, including tractors, harvesters, and other equipment. For instance, India’s tractor sales hit a record 894,112 units in CY2024, up 2.55% YoY, just 5,888 units shy of 900,000. Mahindra led with 42% share (375,078 units), followed by Sonalika at 13.09%, TAFE at 11.54%, and Escorts Kubota at 9.78%. Strong December sales (99,292 units, up 25.7%) and positive farm sentiment signal robust growth ahead in CY2025.

This demand is further fueled by various factors, such as government subsidies that actively promote the adoption of advanced agricultural machinery, the introduction of cutting-edge tire technologies that enhance overall farming efficiency, and the pressing need for improved productivity in the agricultural sector. There are specific regional variations within India that contribute to the growth of the agricultural tire market. Different parts of the country have diverse agricultural practices and varying soil conditions, which require specific types of tires for optimal performance. For example, regions with heavy clay soils may require tires with deeper treads to provide better traction, while areas with sandy soils may need tires with wider treads to prevent sinking and improve stability.

Key Market Drivers

Agricultural Productivity and Land Usage

The foremost driver of the India Agriculture Tire Market is the country's agriculture sector itself. India has a predominantly agrarian economy, with a significant portion of its population engaged in farming. The demand for agricultural tires is closely tied to the level of agricultural productivity and the extent of land under cultivation. As agricultural practices evolve and modernize, the need for high-quality, durable tires increases. The expansion of agricultural land and the adoption of advanced farming techniques drive the demand for specialized tires that can handle the demands of large-scale, modern farming operations. For instance, India’s agriculture sector grew at an average rate of 5% annually from FY17 to FY23, with agricultural income rising 5.23% per year over the past decade. Kharif foodgrain production for 2024 is projected at 1647.05 LMT, up by 89.37 LMT from the previous year.

Government Initiatives and Policies

Government policies and initiatives aimed at boosting the agricultural sector have a substantial impact on the demand for agricultural tires. Various subsidy programs, grants, and schemes offered by the Indian government to promote mechanization and modern farming practices help farmers invest in new equipment, including tires. In addition, regulatory measures related to safety standards and environmental concerns influence the quality and specifications of agricultural tires, further shaping the market. For instance, a new Rs. 6,000 crore (US$ 729 million) sub-scheme under PM Matsya Sampada Yojana will support fishermen, vendors, and MSEs while improving value chains and market reach. The Agriculture Department budget rose from Rs. 21,933 crore (US$ 2.53 billion) in 2013-14 to Rs. 1,22,529 crore (US$ 14.13 billion) in 2024-25, reflecting strong government support.

Monsoons and Weather Conditions

The agriculture sector in India is heavily dependent on the monsoon season, as the majority of farming activities rely on rainfall for irrigation. The vagaries of the monsoon, with its erratic timing and rainfall patterns, can significantly affect crop production and, consequently, the demand for agricultural tires. A good monsoon season can lead to increased cultivation, while a poor season can result in reduced demand as farmers may reduce their planting. This climatic unpredictability makes the agriculture tire market sensitive to weather conditions, and manufacturers need to adapt to these fluctuations.

Rural Economy and Income Levels

The economic conditions of rural India are vital determinants of the agriculture tire market. The income levels and financial stability of farmers influence their capacity to invest in new tires and equipment. A prosperous rural economy encourages farmers to upgrade their machinery and tires, seeking to increase productivity. Conversely, economic hardships in rural areas may lead to delayed purchases or a preference for low-cost options. Hence, the rural economy's health directly impacts the market's growth and development. For instance, Rural India is progressing with multidimensional poverty falling from 24.85% to 14.96% (2015-16 to 2019-21), lifting 135 million people out of poverty. Rural internet users reached 398 million of 954 million total subscribers by March 2024. Income inequality improved, with the rural Gini coefficient dropping from 0.266 to 0.237 (FY22-23 to FY23-24). Rural wages grew steadily in FY25, with agriculture wages rising 5.7% for men and 7% for women, and non-agriculture wages up 5.5% for men and 7.9% for women.

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Key Market Challenges

Price Volatility and Cost Concerns

One of the primary challenges faced by the India Agriculture Tire Market is the volatility in prices of raw materials used in tire manufacturing, such as rubber and steel. These materials are subject to global price fluctuations, making it difficult for manufacturers to maintain stable pricing for their tires. Additionally, the cost of producing high-quality agricultural tires with the required durability and performance features can be substantial. This cost burden is often passed on to the end-users, mainly farmers, who are price-sensitive and seek cost-effective solutions. As a result, price volatility and cost concerns create a challenging environment for both tire manufacturers and their customers, impacting market stability and competitiveness.

Rural Infrastructure and Road Conditions

The state of rural infrastructure and road conditions in India poses a significant challenge to the Agriculture Tire Market. Rural areas often lack well-maintained roads, and the terrain can be uneven and rugged, which places extraordinary stress on tires. Poor road conditions can lead to faster tire wear and frequent damage, reducing the lifespan of tires and increasing maintenance costs for farmers. Furthermore, inadequate infrastructure can also hinder the distribution and supply chain for tires, making it challenging for manufacturers to reach their target markets efficiently. These infrastructure and road conditions challenges can impede the adoption of mechanization in agriculture, which, in turn, affects the demand for agricultural tires.

Counterfeit and Low-Quality Tires

The proliferation of counterfeit and low-quality tires in the market poses a substantial challenge for the India Agriculture Tire Market. These substandard tires, often sold at lower prices, may appear attractive to cost-conscious farmers, but they pose severe risks. Counterfeit tires lack the quality and durability required to withstand the demanding conditions of Indian agriculture, leading to premature wear and potentially hazardous situations in the field. Such tires can also damage farming equipment, causing additional financial burdens for farmers. Overcoming this challenge requires stronger enforcement of quality standards and increased consumer awareness regarding the dangers of counterfeit and low-quality tires.

Key Market Trends

Shift Towards Radial Tires

One significant trend in the India Agriculture Tire Market is the increasing adoption of radial tires over bias-ply tires. Radial tires offer several advantages, including better traction, reduced soil compaction, and improved fuel efficiency. These benefits make them an attractive choice for modern agricultural machinery, such as tractors and combines. As Indian farmers increasingly mechanize their operations, the demand for radial tires has been steadily growing. Manufacturers are responding to this trend by expanding their radial tire offerings, introducing new designs and sizes to cater to a broad range of farming equipment. The shift towards radial tires is expected to continue as farmers seek to optimize their productivity while minimizing environmental impact.

Customization and Specialization

The India Agriculture Tire Market is witnessing a trend towards customization and specialization. Farmers are looking for tires that are specifically designed to meet the unique needs of their crops and terrain. This trend is driven by the diversification of crops and farming practices in India, which vary significantly from region to region. For instance, rice cultivation in the wetlands of South India requires different tires compared to cotton farming in the arid regions of the North. Tire manufacturers are responding to this demand by developing specialized tire variants for various crop types and soil conditions. Customization allows farmers to maximize their agricultural efficiency and minimize crop damage.

Green and Sustainable Tires

Sustainable and environmentally-friendly practices are gaining prominence in the India Agriculture Tire Market. As awareness of environmental concerns grows, both farmers and manufacturers are seeking sustainable solutions. One key development in this context is the introduction of "green" tires, which are designed to minimize the environmental impact of tire production, use, and disposal. These tires often incorporate eco-friendly materials and are engineered for reduced rolling resistance, thereby improving fuel efficiency and lowering carbon emissions. Additionally, recycling and disposal programs for agricultural tires are becoming more common, addressing the challenge of tire waste. The trend towards green and sustainable tires aligns with global efforts to reduce the carbon footprint and will likely gain momentum in the Indian market.

Precision Farming and IoT Integration

The integration of precision farming practices and Internet of Things (IoT) technology is a transformative trend in the India Agriculture Tire Market. Precision farming involves the use of data, sensors, and automation to optimize crop management and increase yield. Tires play a critical role in this trend, as they must be equipped to work seamlessly with autonomous machinery and data-driven agriculture. Tire manufacturers are developing smart tires with embedded sensors that monitor tire pressure, temperature, and wear in real-time. These sensors not only enhance tire performance but also contribute to the efficiency of farming operations. IoT integration also enables predictive maintenance, reducing downtime and maintenance costs. As precision farming gains momentum in India, the demand for smart tires and IoT-integrated solutions is expected to grow.

Segmental Insights

Demand Category Insights             

The Aftermarket segment in India has experienced remarkable growth in recent years, driven by various factors. One of the key drivers is the rapid advancement and mechanization of agriculture practices across the country. With the government's strong emphasis on modern farming methods and the increasing use of machinery like tractors, combine harvesters, and sprayers, there is a growing demand for specialized agriculture tires. These tires are specifically designed to withstand heavy loads and navigate rough terrains, playing a crucial role in enhancing the efficiency of these machines. Moreover, the market has witnessed a significant shift towards the adoption of radial tires, known for their exceptional durability and fuel efficiency. This trend is expected to further drive the growth of the agriculture tire market in India.

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Regional Insights

In 2024, Northern India is expected to dominate the country’s agriculture tire market, driven by states like Uttar Pradesh, Punjab, Haryana, and Rajasthan, which have extensive farming of crops such as wheat, rice, and sugarcane. Rising mechanization is boosting demand for tractors, harvesters, and irrigation equipment, increasing the need for durable, high-performance tires suited for varied terrain and heavy machinery. Government subsidies and policies promoting agricultural mechanization further support this growth. As the region remains India’s agricultural hub, it will continue to lead in agricultural tire demand through ongoing advancements and increased mechanization.

The Southern region, with states like Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana, also shows strong growth in agricultural tire demand. This area’s diverse cropping patterns including rice, cotton, and spices—and increasing use of modern farming equipment drive the need for specialized tires capable of handling both dry and irrigated land. The South benefits from favorable climatic conditions that encourage multiple cropping seasons, prompting farmers to invest in machinery to enhance productivity. Growing infrastructure development and rural mechanization schemes are further stimulating the demand for robust agricultural tires in this region.

In Western India, states such as Maharashtra, Gujarat, and Madhya Pradesh are seeing rising agricultural tire demand driven by expanding cultivation of cash crops like cotton, sugarcane, and pulses. The region’s semi-arid climate and challenging terrain require tires with high load-bearing capacity and durability for effective operation in dry and rough conditions. Additionally, government support for irrigation projects and agricultural modernization is encouraging farmers to adopt mechanized solutions, boosting the need for advanced agricultural tires. The West’s focus on commercial crops and mechanized farming is expected to sustain steady growth in the tire market.

Recent Developments

• In 2024, Yokohama India introduced two new models to its esteemed Geolandar series: the Geolandar X-AT and the Geolandar M/T G003. These advanced tires are designed to provide excellent performance and durability, addressing the varied requirements of off-road enthusiasts and adventurers. The Geolandar X-AT, situated between All Terrain and Mud Terrain categories, delivers outstanding performance across multiple types of terrain.
• In 2024, TVS Srichakra, a leading manufacturer and exporter of two and three-wheeler as well as Off-Highway tires in India, introduced its innovative Steel Belted Agro-Industrial Radial Tires at The Tire Cologne 2024, a prominent global trade exhibition for the tire sector. The company presented its key products at Hall 6.1 Booth: C050–C054 during the three-day event held in Cologne, Germany. This newly launched Steel Belted Agro-Industrial Radial Tire, a pioneering product in its category, is specifically engineered for use in telescopic handlers, compact wheel loaders, and backhoe loaders, catering to both agricultural and industrial needs. The two sizes showcased included 460/70R24 for telehandlers and 340/80R18 for front axle applications of backhoe loaders.
• InFebruary 2023: Continental AG unveiled the VF TractorMaster, the largest tractor tire of its kind, boasting an impressive diameter of 2,147 millimeters. This heavyweight tire weighs 475 kg and has a remarkable load index of 10,300 kg.
• In 2024, TVS Eurogrip Tyres launched its Steel Belted Agro Industrial Radial Tyres at The Tire Cologne trade fair, designed for agricultural and industrial machinery. The company also showcased its range of two-wheeler, off-road, and agricultural tyres, reinforcing its presence in specialized segments amid a global event with over 370 exhibitors focused on tyre innovation and sustainability. 

Key Market Players

• Bridgestone Corp.
• Continental AG
•  Balakrishna Industries Limited
•  Titan International Inc.
• Trelleborg AB
• Michelin
• Nokian Tyres PLC
• Pirelli & C SpA (Prometeon Tyre Group)
• Alliance Tire Group
• Apollo Tyres

Report Scope:

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

• India Agriculture Tire Market, By Vehicle Type:    

o   Tractors

o   Combine Harvesters

o   Trailers

o   Others

• India Agriculture Tire Market, By Demand Category:      

o   OEM

o   Aftermarket

• India Agriculture Tire Market, By Region:    

o   North

o   East

o   West

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Agriculture Tire Market.

Available Customizations:

India Agriculture Tire Market report with the given market data, Tech Sci Research offers customizations according to a 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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