India’s tyre exports climbed to an all-time high of ₹27,312 crore in FY2025-26, registering a 9% year-on-year growth from ₹25,057 crore in the previous fiscal, according to data released by the Ministry of Commerce. The performance marks the second consecutive year of 9% export growth, achieved despite persistent challenges such as elevated logistics costs, supply chain disruptions, and global economic uncertainty.
The United States remained the largest export destination for Indian tyres, accounting for 15% of total export value at ₹4,082 crore. However, its share declined from 17% in FY25 following the increase in tariffs on Indian tyre imports from 25% to 50% in August 2025. The subsequent reduction of tariffs to 18% in February 2026 helped ease pressure on exporters during the closing months of the fiscal year.
Apart from the US, key export markets included Germany (7%), Italy (5%), Brazil (5%), and France (4%), highlighting the industry’s continued success in expanding its presence across developed and emerging markets. According to the Automotive Tyre Manufacturers’ Association (ATMA), sustained export growth has been supported by market diversification strategies, cost optimisation efforts, and supportive government policies.
Over the past four to five years, Indian tyre manufacturers have invested nearly ₹30,000 crore in greenfield and brownfield expansion projects to strengthen production capacity and improve competitiveness. The domestic tyre industry currently generates an estimated annual turnover of around ₹1 lakh crore, with exports contributing more than 25% of total industry revenue.
While ongoing geopolitical tensions, including the crisis in West Asia, continue to impact energy prices and global supply chains, the industry remains optimistic about future growth prospects. ATMA believes that ongoing trade negotiations and India’s increasing integration into global value chains will create new opportunities for export expansion in the coming years.
