How is India's tyre industry expected to grow 12 times to Rs 1.30 lakh crore by 2047?

New Delhi, Sep 16 (NationPress) A recent report indicates that India's tyre industry is poised to experience substantial growth, with revenues projected to increase by 12 times to Rs 1.30 lakh crore by 2047, driven by a resilient original equipment manufacturer (OEM) base, rising vehicle exports, and robust replacement demand.

Throughout this period, the industry's production volume is expected to expand nearly 4 times.

The remarkable revenue growth is largely a result of a shift in the tyre industry's revenue composition, enhanced premiumization, rising raw material costs, a growing export share, and trends towards electrification and servitisation, as stated in a joint report from the Automotive Tyre Manufacturers Association (ATMA) and PwC India.

As India strives towards Viksit Bharat 2047, significant opportunities emerge for the tyre industry, enabling it to fulfill the demands of its domestic customer base while also expanding tyre exports, particularly in the commercial and passenger vehicle segments in prominent markets such as the US and EU, according to Kavan Mukhtyar, Partner and Leader – Automotive at PwC India.

He further emphasized that evolving consumer trends, shifting mobility patterns, a dynamic global business landscape, and sustainability considerations present a pivotal chance for the Indian tyre industry to innovate and ensure sustainable growth leading up to 2047.

The report highlights that strong sales in passenger vehicles (PV) and two-wheelers (2W), driven by rising per capita incomes, along with increased commercial vehicle (CV) sales resulting from robust infrastructure investment and consumption demand, are set to bolster OEM tyre demand.

Furthermore, enhanced mobility and freight availability are expected to fuel demand for replacement tyres.

Export-centric growth strategies, supported by innovations tailored to specific markets and use cases, improved access through new free trade agreements, enhanced cost competitiveness, and better brand positioning—particularly in the PV and CV tyre sectors—are all expected to contribute significantly to export acceleration.

Challenges such as ensuring sustained, cost-competitive supplies of natural rubber, navigating a dynamic regulatory landscape, and overcoming non-tariff barriers will be critical for export growth.

Arun Mammen, Chairman of the Automotive Tyre Manufacturers’ Association (ATMA), remarked that the Indian tyre industry is on the brink of a transformative journey, propelled by rapid economic advancement, changing mobility trends, and an expanding global presence.

He noted, "This growth is set to be driven by a focus on premiumization, innovations rooted in sustainability, and a robust emphasis on technology and exports. As we approach ‘Viksit Bharat 2047,’ the tyre industry is positioned to play a crucial role in realizing India’s automotive ambitions and fostering a resilient, future-ready sector."

Additionally, the growing recognition of the importance of tyre health management and the end customer demand for TPMS-ready fleets are likely to boost the need for services such as professional periodic tyre management, tyre advisory, and optimal fleet management solutions.

According to the report, tyre companies must identify economically viable methods to navigate data security and regulatory challenges to unlock their full servitisation potential.