The Indian tyre industry is projected to achieve a twelve-fold increase in revenue, reaching ₹13,000 crore by 2047, driven by strong domestic demand from original equipment manufacturers (OEMs), robust replacement tyre demand, and accelerated expansion of vehicle exports.
Production Volumes Expected to Quadruple
The joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India, titled “Viksit Bharat 2047: Vision and Roadmap for the Indian Tyre Industry,” estimates that production volumes could expand approximately four times by 2047. Factors such as a shift in revenue mix, premiumisation, rising raw material prices, increasing export share, electrification, and servitisation drive the revenue growth.
Industry Leadership Perspective
“The Indian tyre industry stands at the cusp of a transformational journey, driven by rapid economic growth, evolving mobility trends, and an expanding global footprint,” said Arun Mammen, Chairman, ATMA. “The findings underscore immense growth potential, with revenue projected to grow 12-fold by 2047. As we move towards ‘Viksit Bharat 2047,’ the tyre industry is poised to play a pivotal role in enabling India’s automotive ambitions to build a resilient and future-ready sector.”
Strategic CHARGE Framework
PwC India has recommended a CHARGE framework to guide the industry toward its 2047 vision. This approach focuses on six levers:
*Customer Relevance – delivering customer-centric value propositions
*High-Quality Standards – ensuring continuous quality improvements
*Adaptability – responding agilely to market trends
*Resilience, Resource Efficiency, and Sustainability – enhancing cost competitiveness and operational efficiency
*Growth through Innovation – adopting advanced technologies and global innovations
*Empowering Alliances and Partnerships – building strategic collaborations to drive growth
Drivers of Domestic Demand
Rising per capita income drives robust passenger vehicle (PV) and two-wheeler (2W) sales, while infrastructure development and growing consumption boost commercial vehicle (CV) demand, together driving OEM tyre demand. Additionally, increasing mobility and freight activity support replacement tyre demand.
Export Potential and Challenges
Adopting export-centric strategies—backed by market-specific innovations, improved access through free trade agreements, cost competitiveness, and brand positioning—will accelerate growth in exports, particularly in PV and CV segments.
However, challenges remain, including:
*Ensuring sustained and cost-competitive natural rubber supply
*Navigating a dynamic regulatory environment
*Addressing non-tariff barriers in international markets
*Managing disruptive mobility technologies such as vertical take-off and landing (VTOL) that may impact domestic tyre demand
Conclusion
The ATMA-PwC report, reported by thehindubusinessline.com, shows that strategic planning, technology adoption, and strong partnerships position the Indian tyre industry to achieve exponential growth and contribute significantly to India’s automotive sector by 2047.
