“India is emerging as a global hub for tyre manufacturing”

The industry has recently crossed the Rs1 lakh crore turnover mark. How do you view its growth journey?

The industry has undergone a remarkable transformation. Indian tyre companies today operate world-class manufacturing facilities, invest substantially in technology and R&D, and compete successfully in some of the most demanding markets globally. Over the last 5-6 years, the industry has announced investments of approximately Rs60,000 crore in greenfield and brownfield expansion, a significant part of which has already been commissioned.

Growth is increasingly being driven by technology, premiumisation and exports. At the same time, domestic demand continues to reflect India’s unique operating environment. National highways constitute only a small proportion of the country’s overall road network, while commercial vehicles operate across widely varying road, load and climatic conditions. Durability and safety therefore remain critical considerations for fleet operators, and quality bias tyres continue to be preferred in several applications. This also underlines an important point: tyre standards need to recognise India’s distinctive road infrastructure, usage patterns and operating conditions.

Despite global headwinds, tyre exports touched a record level in FY25-26. What explains this resilience?

It reflects the competitiveness that the Indian tyre industry has built over the years. Indian tyres are now exported across global markets, including the highly discerning markets in North America and Europe. The growing acceptance of Indian tyres in these markets is a strong validation of our manufacturing and technological capabilities. However, the global trading environment remains uncertain. Tariff and non-tariff barriers can alter competitiveness very quickly. Improving market access and ensuring the availability of raw materials at globally competitive prices will be critical to sustaining the export momentum.

The West Asia conflict has disrupted supply chains and pushed up raw material costs. What policy support does the industry need?

The tyre industry is highly raw material-intensive and depends on imports for several critical inputs. The recent conflict has created considerable supply chain volatility and sharply increased procurement costs for some materials. The Government’s temporary exemption of select raw materials from basic customs duty provided timely relief. Given the long procurement and transportation lead times for the tyre industry, we believe the exemption needs to continue for a longer period and should cover other critical raw materials adversely affected by the crisis. There are also materials that are not manufactured domestically and are entirely import-dependent. Customs duty on such materials only adds to manufacturing costs in India. For an industry seeking to expand its global footprint, uninterrupted availability of critical raw materials at competitive prices is essential. 

The industry has itself stepped in to address natural rubber availability through Project INROAD. How significant has the initiative been?

INROAD is a unique example of industry and government coming together to address a long-term raw material challenge. Four leading tyre companies — MRF, CEAT, JK Tyre and Apollo Tyres, committed Rs1,100 crore towards developing 200,000 hectares of new rubber plantations, predominantly in the Northeast, in partnership with the Rubber Board. In 5 years, nearly 180,000 hectares have been brought under rubber plantations, benefiting more than 200,000 growers. As these plantations mature, the focus is shifting to skilling growers, improving productivity and quality and creating processing infrastructure. The objective is not merely to plant rubber trees but to build a sustainable and productive natural rubber ecosystem.

ATMA has also flagged the surge in waste tyre imports. Why is this a serious concern?

The scale of the increase itself calls for urgent policy attention. Imports of waste and scrap rubber have risen almost eight-fold: from 2.64 lakh tonnes in FY20-21 to 21.91 lakh tonnes in FY25-26. Our particular concern is waste tyres entering India in a form that could allow end-of-life tyres to find their way back into use. This has serious implications for road safety, the environment and the domestic recycling ecosystem. ATMA has proposed a straightforward policy intervention: used and waste tyres should be allowed to be imported only in cut pieces or shredded form under the restricted import policy.