Apollo Tyres Capacity Expansion Approved for Andhra Pradesh Plant

On February 4, 2026, Apollo Tyres announced a major manufacturing update after its board of directors approved an Apollo Tyres capacity expansion at the company’s Andhra Pradesh plant. The decision reflects sustained demand momentum in the domestic tyre market and the company’s focus on strengthening its passenger and commercial vehicle tyre portfolio.

Apollo Tyres capacity expansion details for PCR and TBR

The Andhra Pradesh facility currently operates with an installed capacity of 7.1 million Passenger Car Radial tyres per annum and 1.6 million Truck Bus Radial tyres per annum, including additions already under implementation. Capacity utilisation at the plant stands at 82% for PCR tyres and 89% for TBR tyres, indicating high operating efficiency.

Tyre Category	Installed Capacity (million tyres per annum)	Capacity Utilisation
Passenger Car Radial (PCR)	7.1	82%
Truck Bus Radial (TBR)	1.6	89%

Planned capacity additions and timelines

Under the approved plan, Apollo Tyres will add:

• 3.7 million tyres per annum of PCR capacity

• 1.3 million tyres per annum of TBR capacity

The expanded capacities are expected to be fully operational by the end of FY 2029, enabling the company to meet rising OEM and replacement market demand across vehicle segments.

Investment plan and funding structure

The total investment required for the Apollo Tyres capacity expansion at the Andhra Pradesh plant is estimated at INR 58.1 million. According to the company, the planned capex will be funded through a balanced mix of internal accruals and debt, supporting financial discipline while enabling long-term growth.
With utilisation levels already nearing optimal thresholds, the additional PCR and TBR tyre manufacturing capacity positions Apollo Tyres to improve supply resilience, enhance scale efficiencies, and align production capabilities with projected market growth in India’s passenger and commercial vehicle sectors.