India’s domestic tyre industry is on the brink of a massive transformation. A new report predicts explosive growth over the next two decades. This surge is driven by premiumisation and a sharp rise in exports.
Revenue is expected to multiply twelve times. It is projected to reach an astounding Rs 13 lakh crore by 2047. This represents a monumental leap for the sector.
The growth isn’t just about revenue. Production volume is also set to expand approximately four times. This is according to a joint report by ATMA and PwC India.
Several key factors are fueling this expansion. A strong domestic OEM sector is a primary driver. Replacement tyre demand is also significantly contributing.
Another major factor is the accelerated expansion of vehicle exports. This creates a virtuous cycle for tyre manufacturers. The industry is perfectly positioned to benefit.
The sharp revenue growth is attributed to a changing revenue mix. Premiumisation is a critical component. Consumers are opting for higher-value products.
Increase in raw material prices also plays a role. The growing share of exports adds another layer of growth. Electrification and servitisation are emerging trends.
Kavan Mukhtyar from PwC India highlighted the opportunity. India’s journey towards Viksit Bharat 2047 is a key catalyst. The industry can meet domestic and global demands.
He emphasized scaling up tyre exports exponentially. Key markets include the US and EU. The commercial and passenger vehicle segments are crucial.
Emerging consumer trends are creating new possibilities. Mobility shifts are reshaping the landscape. A dynamic global environment offers unique chances.
Sustainability imperatives are also critical. They present an opportunity for the industry to transform. Driving sustainable growth through 2047 is the goal.
Rising economic activity will be a major booster. Infrastructure spend is a significant contributor. Strong domestic consumption will further drive growth.
OEM and replacement tyre revenue will see a 10 per cent CAGR till FY47. This consistent growth underscores the industry’s robust health. The future looks incredibly bright.
The export market is set for a significant expansion. Targeted interventions will help achieve this goal. The global stage awaits Indian tyres.