The Indian tyre industry is aiming to increase its export value to over $5 billion (Rs 41,655 crore) and emerge amongst the top 3 global tyre hubs by 2030, said Anshuman Singhania, Chairman, Automotive Tyre Manufacturers Association (ATMA).
He was speaking at the ATMA Annual Conclave 2024 the flagship event representing the tyre industry in India.
Tyre exports from India have witnessed growth at an accelerated pace and have nearly doubled in the last 4 years. Indian manufactured tyres are being exported to more than 170 countries. Major global markets such as the EU, US, Brazil, UAE and UK recognise the quality of tyres made in India, with exports currently standing at $3 billion (Rs 24,993 crore), which is over 25 percent of industry turnover, said Singhania.
Citing data from the Ministry of Commerce, Government of India, ATMA has stated that tyre exports from India have gone up from Rs 12,844 crore in FY2020 to Rs 23,125 crore in FY2023. Interestingly, the United States is the largest market for Indian tyres accounting for nearly 25% of the total exports from India.
Challenges to the global trade and economy due to recessionary conditions, rising interest rates and geopolitical issues have led to slowing of external demand. However, the tyre industry is making concerted efforts by aligning with suppliers, government, and industry bodies to achieve this goal.
ATMA states that tyre exports can be aided by signing up Free Trade Agreements (FTAs) with significant tyre importing countries like LATAM (Colombia, Brazil, Argentina) and Africa (Nigeria, Ghana etc).
“We have petitioned the Government to negotiate the FTAs so as to promote export of tyres from India. Strategic partnerships, market insights, and a keen understanding of international regulations have stood the industry in good stead and will help us further as we explore global opportunities.
We have urged auto OEMs to work towards increased export of vehicles from India with Indian manufactured tyres fitted on them which will further help us showcase our capabilities to potential markets, fostering global recognition. With support from the entire ecosystem, Indian tyre companies can become a force to reckon with in the global tyre sector,” added Singhania.
