Indian tyre industry revenue to hit ₹13 lakh crore by 2047: ATMA–PwC report

Share via: By 2047, when the country hopes to achieve its “Viksit Bharat” vision, tyre production volumes could expand nearly four-fold, with revenues growing twelve times to touch a staggering ₹13 lakh crore. …Read More <div class="imgWrapper" data-item-event="image_clicked" data-ga-widget="Image Interactions" data-ga-label="https://auto.hindustantimes.com/auto/news/indian-tyre-industry-revenue-to-hit-rs-13-lakh-crore-by-2047-atma-pwc-report-41758097359905.html" data-ga-action="Image Clicked" data-item-element="image" data-item-story-title="Indian tyre industry revenue to hit ₹13 lakh crore by 2047: ATMA–PwC report” data-item-target-url=”/auto/news/indian-tyre-industry-revenue-to-hit-rs-13-lakh-crore-by-2047-atma-pwc-report-41758097359905.html” data-item-story-segment=”N/A”> By 2047, when the country hopes to achieve its “Viksit Bharat” vision, tyre production volumes could expand nearly four-fold, with revenues growing twelve times to touch a staggering ₹13 lakh crore. (Photo is representational) View Personalised Offers on Check Offers India’s tyre industry doesn’t often make headlines beyond price hikes and raw material shortages. But if the projections in a new ATMA–PwC report are anything to go by, tyres may soon be the unsung heroes of India’s mobility and manufacturing story. By 2047, when the country hopes to achieve its “Viksit Bharat” vision, tyre production volumes could expand nearly four-fold, with revenues growing twelve times to touch a staggering ₹13 lakh crore. The journey from a largely domestic-focused sector to a global player could redefine how we think of tyres, not just as rubber rings on wheels, but as high-tech, sustainable, export-ready products. Also Read : Ceat reduces tyre prices to pass on GST cut benefit The demand engine: OEMs, replacement and exportsThe domestic market remains the bedrock. As infrastructure spending surges and per capita incomes rise, OEM demand is expected to grow at nearly 10 per cent CAGR. Passenger vehicles and two-wheelers will continue to be the biggest pull, while commercial vehicles, tied closely to freight and consumption, will add muscle. Replacement demand will also swell as people and goods move more, a quiet but steady driver of revenues. Exports, however, are the big wild card. The study indicates India can radically widen its global presence by focusing on targeted usage scenarios and capitalizing on emerging new free trade deals. Indian tyres may increasingly roll along US and EU highways, as long as cost competitiveness and brand equities are honed. This is no modest transformation, from domestic supplier to global brand ambassador of Indian manufacturing. From rubber to premium tech: the future mixThe sharp spike in revenue is not just about volume but about premiumisation. Tyres are no longer “dumb rubber.” Advanced material engineering, electronics integration like TPMS (tyre pressure monitoring systems), and professional fleet services are transforming them into tech products. For fleet operators, servitisation, periodic management, advisory, health tracking, will become as critical as the truck itself. In other words, the tyre industry is on the same digitalisation and services path that the auto industry has already embarked on. Also Read : Here are the key tyre checks to make today Sustainability adds another layer. Finding alternatives to natural rubber, reducing emissions across the value chain, and adopting futuristic manufacturing techniques are now boardroom imperatives. The PwC “CHARGE” framework pushes for adaptability, innovation and partnerships, softer words perhaps, but hard realities for an industry tied to volatile raw materials and global regulations. The bigger question: can India hold its grip?Arun Mammen of ATMA, see this as a once-in-a-generation opportunity. Tyres, he argues, will play a pivotal role in enabling India’s automotive ambitions. PwC’s experts echo the sentiment, stressing that brand-building and tech-led productivity will decide whether India can truly command global competitiveness. The optimism is well placed, but the road is not free of potholes. Natural rubber availability, regulatory unpredictability, and non-tariff barriers could slow momentum. Add disruptive mobility shifts, from EVs to vertical take-off and landing (VTOL) vehicles, and the industry will need agility as much as scale. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 17 Sept 2025, 16:00 pm IST
Source: hindustantimes.com