- Apollo Tyres will invest INR 35 billion in FY2027 for India and Hungary tire capacity expansion.
- The company secured new OEM approvals while operating near full utilization across India and Europe.
Apollo Tyres has announced an INR 35 billion capital expenditure plan for FY2027 as the company aims to strengthen production capacity across key global markets. The investment strategy will focus heavily on expanding truck and passenger vehicle tire manufacturing operations in India, while additional funds will support passenger car tyre production growth in Hungary. The company revealed the details during its latest investor update, highlighting sustained demand momentum across multiple vehicle segments.
Out of the total planned investment, nearly INR 30 billion has been allocated for Indian operations to expand truck and car tire manufacturing capacity. The remaining approximately INR 5 billion will be directed toward the Hungary facility, which is expected to focus exclusively on passenger car tyre production expansion. Apollo Tyres indicated that the ongoing demand environment has created pressure on existing manufacturing infrastructure, requiring aggressive capacity enhancement initiatives to support future growth plans.
Apollo Tyres Capacity Expansion Allocation for FY2027
| Region | Investment Allocation | Expansion Focus |
|---|---|---|
| India | INR 30 Billion | Truck and Car Tire Capacity |
| Hungary | INR 5 Billion | Passenger Car Tyre Capacity |
The company also reported strong operational performance across its manufacturing network. Capacity utilisation levels in both India and Europe reached approximately 90% during Q4 FY26. Management stated that demand remained exceptionally strong even through April, with production facilities struggling to fully match market requirements. The high utilisation levels indicate continued demand recovery and stable order flow from both replacement and original equipment manufacturer channels.
On the European restructuring front, Apollo Tyres confirmed that the Enschede manufacturing plant in the Netherlands will officially cease production operations on June 30, 2026. Following the closure, future expansion activity within Europe will be concentrated solely at the Hungary facility. The restructuring strategy is expected to streamline operational efficiency while aligning manufacturing investments toward high-demand passenger vehicle tire categories.
The company also strengthened its OEM portfolio during the quarter by securing fresh approvals from leading automotive manufacturers including BMW, MINI, Genesis, KIA, and Mahindra. These approvals are linked to passenger vehicle tire programs and are expected to support Apollo Tyres’ premium positioning strategy in domestic and international markets. The new partnerships further reinforce the company’s growing presence within global OEM supply chains.
Frequently Asked Questions
What is Apollo Tyres’ capex plan for FY2027?
Apollo Tyres has announced an INR 35 billion capital expenditure plan for FY2027 to expand manufacturing capacity in India and Hungary. Around INR 30 billion will be invested in India for truck and car tire production expansion, while nearly INR 5 billion will support passenger car tyre capacity enhancement in Hungary. The company aims to address rising demand levels and strengthen its manufacturing footprint across key markets while improving supply capabilities for both OEM and replacement segments.
Why is Apollo Tyres closing its Netherlands plant?
Apollo Tyres will stop production at its Enschede plant in the Netherlands on June 30, 2026, as part of its European restructuring strategy. Following the closure, the company plans to centralize future European expansion activities at its Hungary facility, which will focus on passenger car tyre production. The restructuring is intended to improve operational efficiency, optimize manufacturing investments, and align production capacity with market demand trends across Europe.
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