India's Tyre Exports Rise To Record ₹27,312 Crore In FY26

India’s tyre exports hit a record ₹27,312 crore in FY2025-26, registering a 9 per cent increase over ₹25,057 crore in the previous fiscal, according to data released by the Ministry of Commerce. The latest figure marks the second consecutive year of 9 per cent growth, achieved despite elevated logistics costs, supply chain challenges and a volatile global economic environment.

The US continued to be the largest export destination, contributing 15 per cent of total shipments, valued at ₹4,082 crore. However, its share declined from 17 per cent in the preceding year following a steep increase in import tariffs by the US administration, which raised duties on Indian tyre imports from 25 per cent to 50 per cent in August 2025. A subsequent reduction to 18 per cent in February 2026 offered some relief to exporters towards the end of the fiscal year.

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Other key export markets included Germany, accounting for 7 per cent of shipments, followed by Italy and Brazil at 5 per cent each, and France at 4 per cent. The presence across these regions indicates continued expansion into developed markets.

Industry body ATMA attributed the sustained export performance to a combination of market diversification, improved cost efficiencies and supportive policy measures at the national level.

Over the past four to five years, tyre manufacturers in India have collectively invested around ₹30,000 crore in expanding capacity through both greenfield and brownfield projects. The sector’s annual turnover is estimated at approximately ₹1 lakh crore, with exports now contributing more than a quarter of total output. Geopolitical developments, including tensions in West Asia, continue to exert pressure on energy prices and supply chain stability. Despite these headwinds, ATMA expressed confidence that ongoing trade agreements and deeper integration into global value chains will help sustain export momentum in the coming years.