Domestic tyre industry revenue likely to grow 12-fold by 2047: Report

India’s domestic tyre industry revenue is projected to rise 12-fold to Rs. 13,00,000 crore (US$ 147.73 billion) by 2047, fuelled by premiumisation and export growth, according to a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India. Production volumes are expected to expand nearly four times, driven by strong demand from original equipment manufacturers (OEMs), replacement tyres, and the rapid growth of vehicle exports. The report highlighted that electrification, servitisation, higher raw material prices, and a shift in the revenue mix will significantly boost the industry’s value.
Partner and Leader, Automotive at PwC India, Leader Mr. Kavan Mukhtyar said India’s path to Viksit Bharat 2047 offers a major opportunity for tyre exports, particularly in commercial and passenger vehicle segments across the United States (US) and European Union (EU). Rising infrastructure investments and robust domestic consumption are forecast to push OEM and replacement tyre revenue at a 10% Compound annual growth rate (CAGR) through 2047, creating a strong foundation for sustainable growth in a dynamic global mobility landscape.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.