Apollo Tyres to Invest ₹5,810 Crore in Major Manufacturing Expansion

Apollo Tyres has announced that it will invest ₹5,810 crore to expand manufacturing capacity at its Andhra Pradesh facility, as the company positions itself to meet rising demand across passenger and commercial vehicle tyre segments. The investment will be financed through a combination of internal accruals and debt, the company stated in a stock exchange filing.

Under the expansion programme, Apollo Tyres will increase passenger car radial (PCR) capacity by 52 per cent, adding 3.7 million units, and truck and bus radial (TBR) capacity by 82 per cent, adding 1.3 million units, per annum by 2029.

The company currently operates with an annual capacity of 7.1 million tyres in the PCR segment and 1.6 million tyres in the TBR segment, with capacity utilisation rates of 82 per cent and 89 per cent, respectively.

Expansion and Likely Market Growth

Apollo Tyres stated it anticipates healthy growth in both PCR and TBR categories in the short to medium term and intends to expand capacity in alignment with projected demand.

Strong Financial Performance

The announcement follows the company's reported 40 per cent year-on-year increase in consolidated net profit to ₹471 crore for the quarter ended 31 December 2025. Revenue from operations grew 12 per cent to ₹7,743 crore during the quarter, compared with ₹6,928 crore in the corresponding period last year.

Robust Demand Across Markets

Chairman Onkar Kanwar said Apollo Tyres recorded double-digit volume growth across geographies and market segments in the quarter. India delivered its best-ever quarterly performance, driven by growth in replacement, exports and OEM channels, while European operations tracked broader market trends. Kanwar said demand momentum remains healthy and is expected to continue.