Indian Tyre Exports Hit Record High in FY2025-26 Despite Global Trade Challenges

India's tyre industry achieved its highest-ever export performance in FY2025-26, with Indian tyre exports reaching ₹27,312 crore, according to data released by the Ministry of Commerce. The achievement represents a 9% increase compared with exports worth ₹25,057 crore in the previous fiscal year. It also marks the second consecutive year in which export growth reached 9%, demonstrating the sector’s resilience despite challenging global trade conditions, elevated freight costs, supply chain disruptions, and persistent economic uncertainty across several international markets.

The India tyre sector continued to strengthen its global presence through strategic market expansion and operational efficiency improvements. Industry participants managed to maintain export momentum even as international logistics networks faced disruptions and geopolitical tensions affected trade flows. The latest export figures underline the growing competitiveness of Indian manufacturers and their ability to serve a broad range of overseas markets under evolving economic conditions.

Major Export Markets Driving Growth

The United States remained the largest individual destination for Indian tyre exports during FY2025-26. Exports to the country were valued at ₹4,082 crore, accounting for approximately 15% of total export earnings. While the US retained its leading position, its share declined from 17% in the previous fiscal year due to changes in import tariff policies that impacted trade volumes during part of the year.

In August 2025, tariffs on Indian tyre imports into the United States increased from 25% to 50%, creating additional challenges for exporters. However, the tariff rate was subsequently reduced to 18% in February 2026, offering relief during the closing months of the fiscal year. The adjustment helped improve market conditions and supported export activity as manufacturers navigated changing trade regulations.

Top International Destinations for Indian Tyre Exports

Beyond the United States, developed and emerging markets continued to contribute significantly to export growth. Germany, Italy, Brazil, and France remained among the leading destinations, highlighting the industry's success in broadening its international footprint and reducing dependence on a single export market.

Investment and Capacity Expansion Support Export Momentum

ATMA attributed the strong export performance to several factors, including market diversification strategies, cost optimisation initiatives, and supportive policy measures. The industry body noted that manufacturers have worked to strengthen their global competitiveness while adapting to changing trade dynamics and customer requirements across regions.

Over the last four to five years, tyre manufacturers have collectively invested around ₹30,000 crore in both greenfield and brownfield expansion projects. These investments have enhanced production capabilities, improved operational efficiency, and enabled companies to meet growing domestic and international demand. The industry's annual turnover is estimated at approximately ₹1 lakh crore, with exports now contributing more than one-fourth of total output.

Future Outlook for the Tyre Industry

Although ongoing geopolitical developments, including tensions in West Asia, continue to influence energy prices and supply chain stability, the industry remains optimistic about future growth prospects. Rising integration into global supply chains and the potential benefits of new trade agreements are expected to create additional opportunities for Indian manufacturers in overseas markets.

Industry stakeholders believe that sustained investments, broader market access, and improved international trade partnerships can help maintain export growth momentum in the coming years. As manufacturers continue to strengthen capacity and diversify customer bases, the sector is well positioned to enhance its role in global tyre trade while contributing to India's manufacturing and export ambitions.

Frequently Asked Questions

What was the value of Indian tyre exports in FY2025-26?
Indian tyre exports reached a record value of ₹27,312 crore during FY2025-26. This represented a 9% increase over the previous fiscal year's export value of ₹25,057 crore. The achievement marked the second consecutive year of 9% export growth despite challenges such as higher logistics costs, supply chain disruptions, tariff changes, and uncertainty in global economic conditions. The performance highlights the industry's growing competitiveness and expanding presence across international markets.

Which countries were the largest markets for Indian tyre exports?
The United States remained the largest export destination, accounting for 15% of total export value and generating ₹4,082 crore in exports during FY2025-26. Other major markets included Germany with a 7% share, Italy and Brazil at 5% each, and France at 4%. These markets demonstrate the industry's diversified export portfolio and its ability to establish a strong presence across both developed and emerging economies around the world.

What factors contributed to the growth of Indian tyre exports?
Export growth was supported by market diversification, cost optimisation initiatives, policy support, and significant investments in manufacturing capacity. Tyre manufacturers invested approximately ₹30,000 crore in expansion projects over the past several years, improving production capabilities and efficiency. Industry efforts to enter new markets and reduce dependency on specific regions also helped sustain growth despite geopolitical challenges, logistics pressures, and changing tariff structures affecting international trade.