The Indian tyre industry is on track for remarkable growth, with production volumes expected to expand nearly four times and revenues projected to increase twelve-fold, reaching ₹1,300 thousand crore by 2047. This forecast is part of the 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 anticipated surge in revenue is attributed to multiple factors, including a shift in the industry’s revenue mix, premiumization, rising raw material costs, greater export participation, electrification, and the adoption of service-based solutions.
Kavan Mukhtyar, Partner and Leader – Automotive at PwC India, remarked, “India’s journey toward Viksit Bharat 2047 presents an extraordinary opportunity for the tyre industry—not only to fulfill the needs of its growing domestic customer base but also to scale exports in key segments like commercial and passenger vehicles to markets such as the US and EU. Emerging mobility trends, global market dynamics, and sustainability goals create a unique environment for transformation. Rapid innovation, advanced material engineering, sustainable alternatives to natural rubber, and a focus on brand-building and digital technologies will be critical to unlocking the industry’s full potential.”
Arun Mammen, Chairman of ATMA, added, “The Indian tyre sector is at the threshold of a major transformation. With accelerating economic growth, evolving mobility patterns, and an expanding global presence, the industry’s prospects are significant. The ATMA-PwC report confirms that by embracing premiumization, sustainability-driven innovation, and a technology-first approach, the sector can achieve a twelve-fold growth in revenue by 2047 and support India’s automotive ambitions.”
PwC India has introduced the CHARGE framework to guide the tyre industry toward sustainable growth. The framework is built on six strategic pillars designed to address emerging market dynamics and future-proof the sector. These include Customer Relevance, which focuses on delivering solutions tailored to evolving consumer expectations, and High-Quality Standards, emphasizing continuous improvement in product and service excellence.
The third pillar, Adaptability, highlights the need for companies to respond swiftly to technological advancements and market shifts, ensuring agility in operations and strategy. Resilience, Resource Efficiency, and Sustainability form the fourth pillar, encouraging the optimization of operations while minimizing environmental impact through efficient use of resources.
Growth Through Innovation stands as the fifth pillar, calling for rapid advancements in materials, processes, and digital technologies to maintain a competitive edge. The final pillar, Empowering Alliances and Partnerships, underscores the importance of collaboration across the value chain to enhance competitiveness and deliver shared benefits.
Sanjay Dawar, Partner and Leader – One Consulting, PwC India, said, “The tyre industry stands at a pivotal moment. Realizing this ambitious growth will require an integrated approach combining innovation, sustainability, digital transformation, and strong partnerships. PwC is committed to helping industry players craft strategies that accelerate progress, build resilience, and contribute to the vision of Viksit Bharat 2047.”
Domestically, the industry is poised for robust expansion, with tyre revenues expected to grow at a 10% CAGR through FY47. Rising passenger vehicle and two-wheeler sales, fueled by increasing incomes, will be a key driver. Commercial vehicle demand will also benefit from infrastructure spending and enhanced freight mobility. However, limited natural rubber availability and the rise of alternative mobility solutions, such as VTOL aircraft, may present challenges.
On the global front, exports are projected to see significant growth by FY47. Companies are encouraged to focus on product innovation for targeted use cases, leverage free trade agreements, and improve cost competitiveness. Despite the potential, challenges such as regulatory complexities, non-tariff barriers, and securing affordable rubber supplies will need to be addressed. Additionally, servitization opportunities — including professional tyre management services, TPMS-enabled monitoring, and fleet optimization — are expected to gain rapid traction. To fully realize these opportunities, companies must solve issues around scalability, data security, and compliance.
Based in New Delhi, the Automotive Tyre Manufacturers’ Association (ATMA) is a leading industry body representing major tyre manufacturers in India, accounting for over 80% of the country’s tyre production. As the recognized voice of the tyre industry, ATMA actively collaborates with the government to advocate for industry interests and supports policy development. It also engages with global stakeholders—including the media, NGOs, and other associations—to highlight the perspective of the Indian tyre sector on key issues.
