Exclusive: TVS Srichakra eyes ₹1,000 Crore Export Revenue by '30, Focuses On Premiumisation

TVS Eurogrip is charting an aggressive international expansion trajectory, targeting a three-fold increase in export revenues to ₹1,000 crores by the end of this decade, as the Indian two-wheeler tyre manufacturer accelerates its global footprint across key markets.

The Madurai-based company recently achieved a significant milestone by becoming the first Indian tyre maker to secure OE fitment exports to Europe, marking a watershed moment for the domestic industry's international aspirations. This breakthrough comes as TVS Eurogrip expands its presence across over 85 countries globally, with established operations spanning 12 European nations and growing market penetration in key Asian economies.

Strategic Entry into US Market

Speaking exclusively about the company's latest expansion, TK Rabi, Chief Operating Officer of TVS Srichakra, revealed the scale of their American venture: "We've recently launched in the month of July we launched our 190 sizes in the US for the aftermarket and it was done in Miami". The US launch represents a calculated move into one of the world's largest tyre markets, focusing primarily on aftermarket sales where the company has demonstrated success in other international territories.

The timing appears strategic, coinciding with India's robust tyre export performance. Indian tyre exports surpassed ₹25,000 crores in FY25, growing 9% year-on-year despite global economic uncertainties, with the United States accounting for 17% of total export value, making it India's largest tyre export destination. 

European Success Story Drives Confidence

TVS Eurogrip's confidence in international markets stems from its proven European track record. "In 2019 we opened up our Europe office and with help of experts there we've been able to penetrate the European market. So we are now present in almost about 12 countries in Europe, competing with the major brands there," Ravi explained.

The company's European success has been bolstered by significant infrastructure investments, including a design center in Milan, Italy, that has developed over 120 products and manages approximately 250 projects annually alongside the Madurai R&D center. This dual-location approach has enabled TVS Eurogrip to combine Indian manufacturing cost advantages with European design expertise and testing capabilities.

Ambitious Revenue Projections

Current export operations contribute 10-12% of TVS Eurogrip's overall revenues, approximately ₹300 crores, but the company's growth trajectory suggests substantial expansion potential. "Ambitiously I would say that we should do kind of ₹1,000 crores" by decade-end, Ravi projected, representing a three-fold increase from current levels.

This growth target appears achievable given the company's consistent export growth exceeding 30% annually over the past three years. The expansion strategy leverages TVS Eurogrip's manufacturing capacity of approximately one lakh tyres per day from facilities in Madurai and Uttarakhand, providing sufficient production bandwidth to support international demand.

Manufacturing Infrastructure Supports Growth

TVS Eurogrip's expansion strategy is underpinned by robust manufacturing capabilities. The company operates production facilities with an annual capacity of approximately 36 million tyres across its Madurai and Uttarakhand plants, providing sufficient scale to meet both domestic and international demand without immediate capacity expansion requirements.

 "I don't think there's an expansion requirement for at least the next couple of years. I think we have the capacity to manage the demand," Ravi confirmed, suggesting the existing infrastructure can support the ambitious export growth targets through improved utilization rates.

Market Positioning and Competitive Advantage

The company's international strategy focuses heavily on aftermarket sales across most global territories, with OEM supply limited to one Italian manufacturer currently. This approach allows TVS Eurogrip to avoid the complex qualification processes typically required for OE fitment while building brand recognition in replacement markets.

"Basically we are primarily in the aftermarket in Europe and the US, even in other countries outside of India primarily our focus is the aftermarket," Ravi noted, highlighting the company's pragmatic approach to international expansion.

The aftermarket focus aligns with broader industry trends, as India's two-wheeler tyre market is projected to grow from USD 3.16 billion in 2025 to USD 6.05 billion by 2031 at a CAGR of 11.2%, driven by increasing vehicle ownership and replacement demand. 

Regional Expansion Strategy

Beyond the US and Europe, TVS Eurogrip has established footholds across diverse geographic markets. The company's presence spans Indonesia, Philippines, Thailand, Korea, and Taiwan in Asia, while maintaining decades-long operations in Latin America and Middle East & Africa (LATAM and MEA) regions.
This geographic diversification provides risk mitigation against regional economic fluctuations while capitalizing on varying growth cycles across different markets. The company's ability to compete with major international brands in European markets demonstrates product quality and performance capabilities that should translate effectively to other premium markets.