India’s tyre industry has achieved a record-breaking export performance, with overseas shipments reaching ₹27,312 crore in FY26, reflecting a 9% increase over the previous year’s ₹25,057 crore. The achievement comes despite global trade uncertainties, rising logistics costs and higher tariffs imposed by the United States, one of the industry’s key export markets.
The United States remained the largest destination for Indian tyre exports, accounting for ₹4,082 crore, or 15% of total export value. However, the country’s share declined from 17% a year earlier after the US raised tariffs on Indian tyre imports from 25% to 50% in August 2025. The tariff increase made Indian products less competitive compared to those from several rival exporting nations.
Despite this setback, Indian manufacturers successfully expanded their presence in other international markets. Germany emerged as the second-largest export destination, followed by Italy, Brazil and France. Industry data shows Indian tyres are now exported to more than 170 countries, highlighting the sector’s growing global reach.
Industry body Automotive Tyre Manufacturers Association (ATMA) credited the strong performance to market diversification, improved competitiveness and sustained investments in manufacturing capacity. Over the past four to five years, tyre companies have invested nearly ₹30,000 crore in greenfield and brownfield expansion projects to boost production and strengthen export capabilities.
The industry also received some relief when the US reduced tariffs on most Indian goods to 18% in February 2026. Industry leaders believe the move could support export growth in the coming months and improve India’s competitiveness in the American market.
With an annual turnover of around ₹1 lakh crore, the tyre sector remains one of India’s leading manufacturing industries.
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