Indian tyre exports reached an all-time high of ₹27,312 crore in FY26, registering a 9 per cent increase from ₹25,057 crore in the previous fiscal, according to data released by the Commerce Ministry. This marks the second consecutive year of 9 per cent growth in tyre exports, highlighting the resilience and global competitiveness of the Indian tyre industry despite geopolitical uncertainties and a slowing global economy.

The strong export performance was achieved amid significant disruptions in global supply chains, elevated logistics costs and trade-related uncertainties across key markets, said Arun Mammen, Chairman of the Automotive Tyre Manufacturers Association (ATMA).

The US remained the largest export destination for Indian tyres, accounting for 15 per cent of total export value at ₹4,082 crore. However, its share declined from 17 per cent in the previous year after the US administration increased tariffs on Indian tyre imports from 25 per cent to 50 per cent, putting Indian exporters at a competitive disadvantage compared to several competing economies that continued to enjoy lower tariff barriers.

Lower tariffs

In a relief for exporters, the US reduced tariffs on most Indian goods from 50 to 18 per cent in February, improving the outlook for tyre exports to the American market.

Through market diversification, cost optimisation and policy support, the Indian tyre industry was able to maintain export momentum. The other leading export destinations for Indian tyres are Germany (7 per cent), Italy (5 per cent), Brazil (5 per cent), and France (4 per cent).

While ongoing geopolitical developments, including the West Asia crisis, continue to pose challenges through supply chain disruptions, higher energy costs and inflationary pressures, the industry remains optimistic about the long-term export outlook. Ongoing trade agreements and greater integration of India into global value chains are expected to create fresh opportunities for export growth.

As global supply chains continue to evolve, India is increasingly being recognised as a reliable sourcing destination for high-quality tyres. Supported by technological advancements, sustainability initiatives and favourable trade engagements, the Indian tyre industry is well positioned to strengthen its role in global markets in the years ahead, said Mammen.

Published on June 3, 2026