India Tyre Market – Industry Size, Share, Trends, Opportunity, and Forecast, By Vehicle Type (Passenger Car, Light Commercial Vehicle (LCV), Medium & Heavy Commercial Vehicles (M&HCV), Off-the-Road Vehicles (OTR), Two-Wheelers, Three-Wheelers), By Demand Category (OEM vs Replacement), By Tyre Construction Type (Radial vs Bias), By Region, By Competition, 2021-2031F

Market Overview

The India Tyre Market was valued at USD 13.88 Billion in 2025 and is expected to reach USD 22.16 Billion by 2031 with a CAGR of 8.11% during the forecast period. Rising urbanization and increasing disposable incomes are driving higher vehicle ownership across India, spurring consistent demand for both OEM and aftermarket tyres. The tyre industry is witnessing growth across two-wheelers, passenger cars, and commercial vehicles, supported by infrastructure development and the growing e-commerce logistics sector. Local manufacturing capacity expansion and a shift towards premium tyres are reshaping the market structure and fueling investment flows. According to the Automotive Tyre Manufacturers’ Association (ATMA), India produced about 221 million tires in FY2023-24, up from 213 million in the previous year. Replacement demand continued to dominate, accounting for nearly 65% of tire consumption across segments like passenger vehicles, two-wheelers, and commercial vehicles.

Demand for technologically advanced tires such as radial, tubeless, and low rolling resistance variants is gaining momentum with consumers focusing on safety, durability, and fuel efficiency. Digital platforms for tire sales and services are expanding rapidly, encouraging more organized retail formats. EV adoption is also prompting innovation in tire designs suitable for electric vehicles, offering quieter and more durable solutions. Tire recycling and circular economy initiatives are becoming increasingly visible as sustainability pressures rise.

Despite these growth factors, challenges such as fluctuating raw material prices, dependence on imports for specialized tire components, and regulatory compliance complexities persist. Intense market competition, availability of low-cost alternatives, and rising transportation costs are also weighing on margins. Adapting to evolving consumer expectations while maintaining cost efficiency remains critical for players operating in the market.

Market Drivers

Expanding Vehicle Parc and Sales

India's expanding motor vehicle population, driven by rising disposable incomes and aspirational ownership, is fueling tire demand across OEM and replacement segments. With increasing urbanization and improved connectivity in rural areas, the uptake of two-wheelers, passenger cars, and light commercial vehicles is rising steadily. Data from the Society of Indian Automobile Manufacturers (SIAM) indicates that domestic vehicle production rose in FY2023-24, with two-wheeler production reaching 20.14 million units and passenger vehicles 4.26 million units. This drives original equipment (OE) tire demand alongside strong replacement volumes. This upward trajectory in production and vehicle sales enhances the need for original tires during manufacturing and ensures consistent aftermarket demand as these vehicles age and require periodic tire replacements. Furthermore, favorable policies such as PLI schemes and faster vehicle registration approvals are strengthening automobile sales momentum. These dynamics stimulate a multi-channel tire demand pipeline from manufacturing to distribution. As the average life of tires remains limited due to India's diverse and challenging terrain, repeat purchases become a regular consumer behavior, further adding to volume growth. The growing penetration of personal mobility and last-mile transportation will continue to contribute to the expanding tire consumer base over the coming years.

Infrastructure Development and Road Expansion

Massive investments in road infrastructure under government programs like Bharatmala and PM Gati Shakti are catalyzing mobility across urban and remote areas, thus pushing demand for both personal and commercial vehicles. The Indian Ministry of Road Transport and Highways (MoRTH) reports ongoing improvements in road infrastructure under the Bharatmala Pariyojana scheme. Over 34,800 km of highways were completed by 2023, supporting freight and passenger vehicle movement and indirectly boosting tire wear-and-tear and demand.

Improved road networks result in higher vehicle utilization and longer travel distances, increasing tire wear and thus accelerating replacement frequency. The construction of expressways, highways, and rural roads also facilitates the movement of heavier loads and commercial freight, encouraging the use of durable, load-bearing tires in trucks and buses. Simultaneously, better infrastructure supports the expansion of intercity and intracity passenger transport systems, which contributes to bus fleet modernization and corresponding tire needs. 

Rising Replacement Demand

India’s tire market is highly replacement-driven, where recurring wear due to extreme climatic conditions, overloaded vehicles, and mixed driving terrains ensures ongoing demand for tire replacement. Consumers in both urban and rural settings typically replace tires based on usage rather than mileage thresholds, leading to faster turnover. The average lifespan of tires in India is lower compared to global benchmarks, especially in commercial vehicles where load intensity is higher. As vehicle ownership becomes more widespread, especially in Tier-II and Tier-III cities, the replacement market sees robust growth across categories such as motorcycles, passenger vehicles, and goods carriers. The evolving preference for branded, performance-oriented, and durable tires in the replacement segment is also steering growth in premium and mid-tier segments. Organized retail formats and online tire platforms are further enhancing the consumer replacement experience, reducing friction and increasing conversion. This sustained replacement cycle forms the backbone of tire market revenues.

Technological Advancements in Tyre Design

Innovation in tire materials, construction, and performance optimization is driving higher consumer interest and better value proposition across price bands. Radialization in commercial vehicle tires, introduction of low rolling resistance compounds, and noise-reduction treads for EVs are reshaping how consumers and OEMs perceive tire quality and function. Technologies like self-sealing tires, advanced tread wear indicators, and chip-embedded tires for real-time monitoring are improving road safety and maintenance predictability. These developments are also aligned with global regulatory trends toward sustainability, safety, and emissions control. Manufacturers are increasingly incorporating AI-enabled production systems, smart compounding, and automation to ensure consistent product performance and scalability. In urban markets, these innovations help address consumer concerns related to comfort, handling, and durability. Across vehicle classes, such technologies improve fuel efficiency, reduce operational costs, and enhance lifecycle value. The growing willingness among consumers to pay a premium for longer-lasting, safer tires underscores the importance of continuous R&D investment.

EV Adoption and Tailored Tyre Solutions

As electric vehicle adoption gains momentum across two-wheelers, passenger cars, and commercial fleets, demand is rising for specialized tire designs that accommodate the unique requirements of EVs. These vehicles typically weigh more due to battery packs, exerting greater stress on tires, and operate with higher torque, which impacts tread wear. Furthermore, consumers expect quieter rides, prompting development of low-noise tire treads and sound-absorbing compounds. Tire companies are now designing EV-specific models that optimize rolling resistance, enhance range, and support regenerative braking. Fleets and OEMs increasingly require tires that can handle varied urban terrains while maximizing energy efficiency. With government initiatives pushing EV adoption and the rise of shared mobility platforms choosing electric fleets, the relevance of EV-compatible tires is growing. Such adaptation helps manufacturers cater to evolving mobility trends while ensuring compliance with emerging industry standards and expectations. EV-centric tire innovation is now a distinct growth lever across both B2C and B2B markets.

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Key Market Challenges

Volatile Raw Material Prices

The tire industry is highly sensitive to fluctuations in the prices of key raw materials like natural rubber, synthetic rubber, carbon black, and steel cords. These materials are either domestically sourced under limited supply or heavily imported, exposing manufacturers to global price volatility and currency exchange fluctuations. A significant portion of natural rubber is imported from countries in Southeast Asia, making the industry susceptible to supply chain disruptions and geopolitical tensions. According to the Rubber Board of India, India’s natural rubber consumption for tire manufacturing reached over 1.26 million tonnes in FY2023-24. The tire industry consumes about 70% of India’s total rubber usage, highlighting its critical link to the allied rubber and plantation sectors. When prices rise, manufacturers face margin pressure, especially in a price-sensitive market like India, where passing cost increases to consumers can impact demand. This instability affects not just procurement strategies but also long-term planning, pricing models, and inventory management. In such an environment, even marginal price movements in commodities can significantly influence profitability. Managing this volatility while maintaining competitiveness requires agile sourcing practices, supply chain resilience, and increased domestic production capacity, which continue to pose significant operational and strategic challenges.

Increased Competition from Unorganized Sector

The Indian tire market includes a sizable unorganized segment consisting of local retreaders, non-branded tire sellers, and grey-market imports that offer products at lower prices. These players often operate outside regulatory compliance, safety standards, and taxation frameworks, enabling them to sell at highly competitive rates, particularly in rural and semi-urban regions. This affects the market share of organized players who invest in R&D, quality assurance, and brand-building. The presence of counterfeit and sub-standard tires further complicates market dynamics, leading to price distortions and safety concerns. While brand-conscious urban consumers increasingly prefer certified products, a large portion of the market remains driven by cost over quality. This inhibits efforts to upgrade consumer behavior toward premium and technologically advanced products. Tackling the unorganized sector through policy enforcement, consumer awareness, and incentivizing quality compliance remains a persistent challenge for the formal tire industry.

Regulatory and Compliance Complexity

The Indian tire industry must comply with a multitude of regulatory standards related to quality certification, environmental safety, and roadworthiness. The Bureau of Indian Standards (BIS) mandates compulsory certification, while energy efficiency, noise emissions, and rolling resistance norms are increasingly becoming stringent. As India aligns more closely with global automotive safety and emission norms, tire manufacturers face pressure to adapt swiftly without significantly raising product costs. For exporters, compliance with diverse international regulations including EU labelling norms and U.S. safety standards adds another layer of complexity. Non-compliance risks product recalls, reputational damage, and penalties. Regulatory transitions also entail frequent investments in testing infrastructure, documentation, and certification processes. Small and mid-sized manufacturers often struggle to match these evolving compliance requirements. Balancing innovation, affordability, and regulatory readiness continues to be an operational hurdle, particularly in a market where regulatory changes are often rolled out on short timelines.

Key Market Trends

Rise of Smart and Connected Tyres

The emergence of smart tire technology is transforming traditional tire performance into a digitally connected experience. Smart tires are integrated with sensors that provide real-time data on pressure, temperature, tread depth, and overall condition, enhancing safety and preventive maintenance. These solutions are increasingly being adopted by commercial fleets to monitor tire health remotely, minimize downtime, and optimize fuel efficiency. Such features are also gaining interest among tech-savvy individual car owners who seek better control over vehicle performance. Tire manufacturers are collaborating with software developers and telematics companies to create value-added services such as predictive maintenance alerts and integration with fleet management systems. As logistics operators and shared mobility platforms prioritize efficiency and automation, smart tires are becoming integral to cost and risk management strategies. Although currently niche, this trend is expected to gain significant traction with declining sensor costs, wider OEM adoption, and policy support for intelligent transport systems.

Growth of E-commerce Tire Retailing

Digital platforms are becoming an essential part of tire distribution, offering customers convenience, price comparison, doorstep delivery, and installation services. Online tire marketplaces are reshaping traditional retail by offering a wider range of options, user reviews, and transparent pricing. This shift is particularly relevant for urban and semi-urban consumers who prefer online channels for informed purchases. E-commerce adoption is also helping tire manufacturers expand their reach without heavy investments in brick-and-mortar infrastructure. The rise in digital payment systems, easy returns, and value-added services such as free alignment or installation has further accelerated this trend. For replacement tires, online ordering is increasingly paired with home service models that deliver and install tires at the customer’s location. This digitally-enabled sales channel is unlocking new revenue streams, reducing distribution costs, and providing rich consumer data for targeted marketing. The rise of omni-channel strategies indicates a long-term shift in how tires are marketed and sold.

Focus on Sustainability and Eco-Friendly Tyres

Environmental sustainability is becoming a central theme in tire manufacturing and consumption. Companies are exploring biodegradable materials, bio-based rubber, and low-emission production methods to align with global climate goals and local environmental regulations. Consumers are also showing growing preference for sustainable products that reduce their carbon footprint, encouraging companies to invest in green tires. These eco-friendly tires offer lower rolling resistance, improved fuel economy, and longer service life. Manufacturers are also working on improving the recyclability of tires through circular economy models that involve collection, reuse, and energy recovery. Labeling schemes certifying sustainable practices, such as ISCC+ certification, are emerging as industry benchmarks. Many OEMs and fleet operators are mandating the use of eco-certified tires as part of their ESG goals. This emphasis on green manufacturing and responsible disposal is gradually redefining product design, marketing, and supply chains, establishing sustainability not as a niche offering but a mainstream demand driver.

Segmental Insights

Tyre Construction Type Insights

Tire construction in India is broadly classified into radial and bias types, each serving distinct use cases across various vehicle categories. Radial tires feature layers of fabric with cords running at 90 degrees to the direction of travel, offering better flexibility, reduced rolling resistance, and improved fuel efficiency. These characteristics make radial tires particularly suitable for long-distance travel and high-speed performance, contributing to smoother rides, less heat buildup, and longer tread life. In contrast, bias tires, also known as cross-ply tires, have cords arranged in a crisscross pattern, delivering high sidewall strength, better shock absorption, and resistance to external impacts. This construction style is well-suited for off-road applications and uneven terrains, making them commonly used in agricultural machinery, industrial equipment, and certain commercial vehicles operating under rugged conditions.

Both radial and bias tires continue to find relevance in India’s diverse transportation ecosystem. While radial tires are widely preferred for their efficiency benefits in urban, highway, and logistics applications, bias tires remain prevalent in segments where initial cost sensitivity and load-bearing capabilities outweigh long-term savings. In heavy-duty haulage, construction fleets, and rural mobility, bias tires offer a dependable and cost-effective solution, especially where maintenance infrastructure is limited. Their ability to handle variable load profiles and operate on damaged or unpaved roads makes them a reliable choice for challenging environments.

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Region Insights

In 2025, the northern region of India emerged as a key contributor to tire demand, driven by its dense road network, high vehicle population, and active freight and passenger transport operations. States such as Delhi, Uttar Pradesh, Punjab, and Haryana experienced strong growth in both original equipment and replacement tire segments, supported by a combination of urbanization, rural mobility expansion, and commercial vehicle circulation. The region's well-connected highways and expanding city infrastructure generated consistent tire wear, translating into increased replacement cycles across two-wheelers, passenger cars, and goods carriers. Demand for radial tires, especially in buses and trucks operating across industrial and agricultural zones, gained traction due to longer haulage routes and higher road quality in intercity corridors.

Northern India’s role as a transit corridor linking eastern, central, and western parts of the country contributed to sustained tire consumption. The presence of key transport and logistics hubs, including NCR and parts of western Uttar Pradesh, reinforced tire replacement frequency due to high vehicle turnover. Commercial fleets operating on tight schedules and high payloads generated regular demand for long-lasting and high-performance tires. Consumers in metropolitan and Tier-II cities exhibited rising awareness about tire quality, fuel-saving capabilities, and brand performance, prompting increased demand for feature-rich products in the replacement market.

The tire market in West India thrives on dense urbanization, industrial hubs, and vibrant trade activity, driving high demand for both replacement and OEM tires. Cities like Mumbai, Pune, and Ahmedabad generate significant sales in passenger and two-wheeler segments, while Gujarat’s strong logistics and industrial base fuels commercial vehicle tire consumption. Growth in road infrastructure, rising vehicle ownership, and active ports bolster tire sales and distribution networks. According to ATMA and SIAM data trends, West India remains a crucial market, benefiting from proximity to raw material imports and export ports, ensuring robust demand across radial and bias tire categories.

Recent Developments

• In June 2025, Continental announced a strategic realignment of its operations in India to focus on localization, efficiency, and future mobility solutions. This includes optimizing its footprint and leveraging synergies in R&D and manufacturing across tire and automotive technologies.
• In January 2025, BKT Tires showcased its advanced off-highway tire range at the Bharat Mobility Global Expo 2025. The company presented new solutions tailored for construction, agriculture, and mining vehicles, emphasizing durability and sustainability.
• In May 2025, JK Tyre introduced India’s first AI-backed sustainable tire designed to optimize fuel efficiency and enhance road safety. The tire integrates intelligent features for performance tracking and aims to support fleet operators in predictive maintenance.
• In May 2025, JK Tyre launched India’s first ISCC Plus-certified sustainable car tire, reinforcing its commitment to environmental responsibility. The certification reflects adherence to international sustainability standards and promotes the use of eco-friendly raw materials in tire production.
• In January 2025, Michelin India presented its latest mobility solutions at the Bharat Mobility Global Expo 2025. The company displayed innovations focused on safety, sustainability, and digital integration, including connected tire systems and low-resistance eco tires.

Key Market Players

• MRF LIMITED
• Apollo Tyres Ltd
• JK Tyre & Industries Ltd
• CEAT Limited
• Balkrishna Industries Limited (BKT)
• Goodyear India Limited
• CONTINENTAL TYRES INDIA PVT LTD.
• Yokohama India Pvt. Ltd
• Hankook Tire & Technology Co., Ltd
• TVS SRICHAKRA LIMITED

Report Scope:

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

·         India Tyre Market, By Vehicle Type:

o    Passenger Car

o    LCV

o    M&HCV

o    OTR

o    Two-Wheeler

o    Three-Wheeler

·         India Tyre Market, By Demand Category:

o    OEM

o    Aftermarket

·         India Tyre Market, By Tyre Construction Type:

o    Radial

o    Bias

·         India 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 Tire Market.

Available Customizations:

India Tire 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).