The India tyre market size reached a volume of nearly 190.54 million units in 2023. The market is projected to grow at a CAGR of 6.6% between 2024 and 2032, reaching a volume of around 339.37 million units by 2032. This growth is a testament to the dynamic automotive sector, rising vehicle ownership, and expanding road infrastructure in the country. In this blog, we explore the market’s size, share, trends, and competitive dynamics.

Market Overview

Tyres are an essential component of the automotive industry, supporting vehicle safety, fuel efficiency, and performance. In India, the tyre market is a critical segment of the economy, catering to a diverse range of vehicles, from two-wheelers to heavy commercial vehicles.

The market’s evolution is fueled by urbanization, rising disposable incomes, and government initiatives like ‘Make in India’ and extensive road infrastructure projects. India’s position as a global automotive manufacturing hub also bolsters its tyre industry’s growth.

Market Size

In 2023, the India tyre market reached a volume of approximately 190.54 million units. With a projected CAGR of 6.6%, the market is poised for significant growth, expected to hit 339.37 million units by 2032. This expansion reflects increased vehicle production, replacement demand, and rising exports to international markets.

The steady growth is supported by advancements in tyre technology, improved manufacturing processes, and a shift toward premium and specialized tyre segments.

Market Share

Key Contributors:

  1. Passenger Cars: Dominates the market, driven by urbanization and rising ownership of personal vehicles.

  2. Two and Three Wheelers: Significant share due to their affordability and utility in rural and urban areas.

  3. Light Commercial Vehicles (LCVs): Growth fueled by the expansion of e-commerce and last-mile delivery services.

  4. Medium and Heavy Commercial Vehicles (MHCVs): Strong demand linked to logistics and infrastructure projects.

  5. Others: Includes specialty tyres for agricultural and industrial vehicles.

Market Trends

Emerging Trends Shaping the Market:

  1. Radial Tyres: Increasing adoption for passenger cars and commercial vehicles due to durability and fuel efficiency benefits.

  2. Tubeless Tyres: Gaining popularity across vehicle categories for their safety and low-maintenance features.

  3. Eco-Friendly Tyres: Rising focus on sustainable production and biodegradable materials.

  4. Smart Tyres: Integration of IoT technology for real-time performance monitoring.

  5. Premium Tyre Segment: Growing demand for luxury and high-performance vehicles boosts this niche.

Market Analysis

SWOT Analysis:

Strengths:

  • Strong domestic demand and established manufacturing infrastructure.

  • Growing exports to neighboring countries and global markets.

Weaknesses:

  • Dependence on imports for raw materials like natural rubber.

  • Price sensitivity in rural markets.

Opportunities:

  • Expansion in electric vehicle (EV) tyres.

  • Increased government support for infrastructure and rural connectivity.

Threats:

  • Volatility in raw material prices.

  • Intense competition from international brands and low-cost imports.

Porter’s Five Forces Analysis:

  1. Threat of New Entrants: Moderate due to high initial investment and established competition.

  2. Bargaining Power of Suppliers: Strong, given the reliance on raw materials like rubber.

  3. Bargaining Power of Buyers: High, influenced by price sensitivity and product quality.

  4. Threat of Substitutes: Low, as alternatives to tyres are limited.

  5. Industry Rivalry: Intense, driven by price wars and product differentiation.

Market Segmentation

By Vehicle Type:

  1. Passenger Cars: Largest segment due to rising middle-class income and urbanization.

  2. Two and Three Wheelers: Dominant in rural and semi-urban markets.

  3. Light Commercial Vehicles (LCVs): Growing with the logistics and e-commerce boom.

  4. Medium and Heavy Commercial Vehicles (MHCVs): Essential for industrial and infrastructure projects.

  5. Others: Specialty tyres for tractors, industrial machinery, and niche vehicles.

By Design:

  1. Radial Tyres: Preferred for fuel efficiency and performance.

  2. Bias Tyres: Retaining a share in specific segments like heavy-duty applications.

By Type:

  1. Tubeless Tyres: Gaining traction across all vehicle categories.

  2. Tube-Type Tyres: Retaining demand in rural and budget markets.

By Tyre Size:

  1. Small and Medium-Sized Tyres: Dominant for two-wheelers and passenger cars.

  2. Large Tyres: Growing demand for commercial vehicles and industrial machinery.

By Price Segment:

  1. Budget Tyres: Popular in rural and cost-conscious markets.

  2. Mid-Range Tyres: Growing segment with balanced performance and price.

  3. Premium Tyres: Expanding with demand for luxury vehicles.

By Distribution Channel:

  1. OEM (Original Equipment Manufacturer): Steady demand from vehicle manufacturers.

  2. Aftermarket: Dominates due to replacement demand and wider reach.

  3. Online Sales: Emerging as a convenient channel with competitive pricing.

Market Growth

The India tyre market’s growth is driven by:

  • Rising vehicle ownership across urban and rural areas.

  • Expanding road infrastructure and highway projects.

  • Increasing focus on sustainable and specialized tyre production.

Government initiatives, such as tax incentives and infrastructure development programs, further support the market’s upward trajectory.

Recent Developments and Challenges in the Market

Recent Developments:

  1. Expansion of Manufacturing Facilities: Leading brands increasing production capacity.

  2. Technological Advancements: Smart and eco-friendly tyre launches.

  3. Strategic Partnerships: Collaborations for innovation and global market penetration.

Challenges:

  1. Fluctuating Raw Material Costs: Impacting profitability and pricing.

  2. Competition from Imports: Pressure from low-cost alternatives.

  3. Sustainability Issues: Need for greener production practices.

Key Players in the Market

Major players driving the India tyre market include:

  1. MRF: Market leader known for its diverse product portfolio.

  2. Apollo Tyres: Strong presence in domestic and international markets.

  3. CEAT: Focused on innovation and customer-centric solutions.

  4. JK Tyre: Renowned for its range of radial tyres.

  5. Bridgestone: Global giant with a growing footprint in India.

These players invest heavily in R&D, ensuring competitiveness and innovation.

Upcoming Challenges in Market

  • Adapting to the rising demand for electric vehicle (EV) tyres.

  • Addressing environmental concerns with sustainable production methods.

  • Balancing affordability with advanced features for price-sensitive consumers.

  • Overcoming supply chain disruptions and dependency on raw material imports.

Competitive Landscape

The India tyre market is highly competitive, with domestic and international players vying for market share. Strategies include:

  • Product diversification to cater to various vehicle categories.

  • Expanding distribution networks across urban and rural areas.

  • Leveraging digital channels for direct consumer engagement.

The India tyre market is poised for robust growth, supported by advancements in technology, rising consumer demand, and government initiatives. By addressing challenges and embracing innovation, stakeholders can capitalize on the immense opportunities this dynamic market offers.