Tyre enthusiasts worldwide, spanning beyond India, are in for an exhilarating era as the Indian Tyre Industry propels itself towards an ambitious goal of surpassing $5 billion in export value and securing a spot among the top three global tyre hubs by the year 2030. Anshuman Singhania, Chairman of the Automotive Tyre Manufacturers Association (ATMA), shared these exciting developments during the ATMA Annual Conclave 2024, the flagship event for the Tyre Industry.
Current Status
Over the past four years, Indian tyre exports have demonstrated remarkable growth, nearly doubling in value. The industry has successfully expanded its reach to more than 170 countries, with major global markets such as the EU, US, Brazil, UAE, and UK recognising the high quality of Indian manufactured tyres. The current export value stands at $3 billion, contributing to over 25% of the industry's turnover.
Export Statistics
According to data from the Ministry of Commerce, Government of India, tyre exports from the country have risen from INR 12,844 crore in FY20 to INR 23,125 crore in FY23. Notably, the United States emerges as the largest market for Indian tyres, constituting nearly 25% of the total tyre exports from India.
Despite challenges in the global trade landscape due to recessionary conditions, rising interest rates, and geopolitical issues impacting external demand, the tyre industry remains resilient. Collaborative efforts with suppliers, Government bodies, and industry stakeholders are underway to overcome these challenges and achieve the ambitious export target.
FTAs, Global Expansion
Singhania emphasised the need to sign FTAs with significant tyre-importing countries, particularly in LATAM (Colombia, Brazil, Argentina) and Africa (Nigeria, Ghana, etc.). Petitions have been submitted to the Government to initiate negotiations for FTAs, aiming to promote the export of Indian tyres.
Strategic Initiatives
Strategic partnerships, a deep understanding of international regulations, and market insights have positioned the Indian tyre industry for success. The industry is actively engaging with OEMs to encourage increased exports of vehicles fitted with Indian manufactured tyres, aiming to showcase the capabilities of Indian products to potential global markets.
Conclusion
With support from the entire ecosystem, Indian Tyre companies are poised to become a formidable force in the global tyre sector. The industry's commitment to quality, strategic partnerships, and proactive initiatives will contribute to the continued growth and success of Indian tyre exports on the global stage.
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