India's tyre exports achieved an all-time high of Rs 27,312 crore in the financial year 2025-26, registering a 9 per cent increase over the Rs 25,057 crore recorded in the previous fiscal year, according to data released by the Ministry of Commerce.
This marks the second successive year of 9 per cent growth, achieved despite increased logistics costs, supply chain disruptions, and widespread global economic uncertainty.
US remains the largest market despite duty hike
The United States continued to be the largest market for Indian tyre exports, accounting for Rs 4,082 crore or 15 per cent of the total export value. However, its share declined from 17 per cent in the previous year after the US administration increased duties on Indian tyre imports from 25 per cent to 50 per cent in August 2025. Exporters received some relief when the duty was reduced to 18 per cent in February 2026.
Other key export destinations
Germany accounted for 7 per cent of exports, followed by Italy and Brazil at 5 per cent each, and France at 4 per cent. These figures reflect the continued expansion of established markets beyond the US.
Industry performance and investments
The Automotive Tyre Manufacturers' Association (ATMA) attributed the industry's consistent performance to national policy support, cost optimisation, and market diversification. Tyre manufacturers have invested about Rs 30,000 crore in greenfield and brownfield capacity expansion over the past four to five years. Exports now account for more than one-fourth of the industry's total output, with an estimated annual turnover of Rs 1 lakh crore.
Challenges and outlook
The West Asia crisis and other ongoing geopolitical developments continue to impact supply chain stability and energy prices. However, ATMA expressed optimism that future export growth would be supported by expanding trade agreements and India's increasing integration into global value chains.
