Mumbai : Due to strong domestic OEM, replacement tyre demand and accelerated expansion of vehicle exports Indian tyre industry production volume is expected expand approximately 4 times by 2047. During this period revenue is expected to grow 12 times to Rs 1,300 thousand crore industry by 2047 as per a joint report by the Automotive Tyre Manufacturers Association (ATMA) and PwC India titled, “Viksit Bharat 2047: Vision and roadmap for the Indian tyre industry”. The sharp rise in revenue growth is attributed to change in tyre industry’s revenue mix, premiumization, increase in raw material prices, growing share of exports, electrification and servitisation.

Commenting on the trends driving the growth in the tyre market, Kavan Mukhtyar, Partner and Leader – Automotive, PwC India, said, “India’s journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base but also to exponentially scale up tyre exports, especially in the commercial vehicle and passenger vehicle segments across key markets like the US and EU. Emerging consumer trends and mobility shifts, a dynamic global business environment, and sustainability imperatives present a unique opportunity for the Indian tyre industry to transform itself and drive sustainable growth through 2047. Innovating at speed for global markets through advanced material engineering, finding sustainable alternatives for natural rubber, and addressing sustainability imperatives throughout the value chain will be key to unlocking growth potential for the industry. Additionally, brand strengthening in export markets and investing in digital technologies across the value chain will be essential to drive productivity and a sustained global competitive advantage.”

Arun Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA), said, “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. The findings of the ATMA-PwC report underscore the industry’s immense growth potential, with revenue projected to grow 12-fold by 2047. This growth will be fueled by a shift towards premiumization, sustainability-led innovation, and a strong focus on technology and exports. 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.”

PwC India has proposed a CHARGE framework, which is a strategic approach designed to help the tyre industry achieve its 2047 vision by focusing on six levers: Customer relevance, High-quality standards, Adaptability, Resilience, resource efficiency and sustainability, Growth through innovation, and Empowering alliances and partnerships. This framework emphasises offering customer-centric value propositions, enhancing agility in responding to market trends, adopting futuristic technologies to drive continuous quality improvement, cost competitiveness and operational efficiency improvement, driving cutting edge and rapid global innovation, and forging strategic partnerships/ alliances to deliver on industry growth aspirations.

Sanjay Dawar, Partner and Leader – One Consulting, PwC India said, “The Indian tyre industry is at an inflection point, with the potential to create significant economic value and strengthen India’s global competitiveness. Achieving this twelve-fold revenue growth will require a holistic approach — one that brings together innovation, sustainability, digital transformation, and strong partnerships across the ecosystem. At PwC, we are committed to working alongside industry stakeholders to co-create strategies that can accelerate momentum, build resilience, and help realise the Viksit Bharat 2047 vision.”

Key highlights:

  1. Rising economic activity from infrastructure spend and strong domestic consumption will drive OEM and replacement tyre revenue by ~10% CAGR till FY47. Robust passenger vehicle (PV) and two- wheeler (2W) sales led by improving per capita income, rising commercial vehicle CV sales led by strong infrastructure spending and consumption demand is expected to drive OEM tyre demand. Increased people mobility and freight availability is expected to support replacement tyre demand. Domestic natural rubber availability and disruptive mobility options like vertical take-off and landing (VTOL) are among key factors posing challenges for growth of domestic tyre demand
  1. The export market for Indian tyres is set to expand significantly by FY47, with targeted interventions enhancing India’s export market position. Adopting export centric growth strategies supported by market and use case specific innovations, improved market access through newer Free trade agreements, improved cost competitiveness and brand positioning especially in PV and CV tyre segments will be among key factors aiding acceleration of exports. Ensuring sustained and cost competitive availability of natural rubber, dynamic regulatory environment, non-tariff barriers will be among key challenges for growth of exports.
  2. Exponential adoption of professional tyre management services among fleet operators will drive the servitisation market through FY47. Increased recognition of importance of managing tyre health, end customer demand for TPMS ready fleets etc is likely to drive demand for services like professional periodic tyre management, Tyre advisory, optimal fleet management solutions. Tyre companies will need to find economically viable solution to scale and manoeuvre data security and regulatory issue to reach servitisation potential.