Driving Forward: How India’s Tyre Exports Surged Amid Global Challenges in FY2023-24

The Indian tyre industry showcased remarkable resilience in FY2023-24, achieving total exports worth ₹23,073 crore, matching the previous fiscal year’s performance. This achievement, announced by the Automotive Tyre Manufacturers’ Association (ATMA), is particularly noteworthy given the challenging global landscape in the year’s first half.

A Tale of Two Halves

In the initial six months of FY2023-24, Indian tyre exports faced significant hurdles. Demand plummeted due to an economic slowdown in advanced economies, geopolitical uncertainties, and persistent inflationary pressures. Yet, the second half of the fiscal year told a different story. With a sharp 12% increase in export value compared to the same period a year ago, the sector rebounded strongly, reflecting its ability to adapt and thrive in adversity.

Global Footprint and Quality Assurance

Indian tyres are now exported to over 170 countries, including key markets like the US and EU. This extensive reach underscores the global appreciation for the quality and value proposition offered by Indian manufacturers. ATMA Chairman Arnab Banerjee emphasized this sentiment, stating, “The resurgence in tyre exports highlights the industry’s resilience and ability to carve a niche in global markets despite a tough external environment.”

A High Export-to-Turnover Ratio

With an impressive turnover of approximately ₹90,000 crore and exports exceeding ₹23,000 crore, the Indian tyre industry stands out as a sector with a high export-to-turnover ratio. This strength positions it as a pivotal player in India’s manufacturing and export landscape.

Opportunities and Challenges

The global economic recovery presents a promising opportunity for Indian tyre manufacturers to expand their footprint further. However, the industry faces critical challenges, particularly concerning the accessibility of natural rubber, a key raw material. Current regulations, including pre-import conditions and a reduced export obligation period from 18 months to just 6 months, create operational constraints.

ATMA has called for policy interventions to address these issues, urging the government to restore the export obligation period to its original timeline to ensure smoother operations and enhance export performance.

The Road Ahead

The Indian tyre industry’s performance in FY2023-24 demonstrates its ability to navigate challenging terrains and emerge stronger. With strategic policy support and the right market conditions, the sector is well-poised to accelerate exports in the coming years, reinforcing India’s position as a global leader in tyre manufacturing.

As global demand rebounds, the Indian tyre industry is ready to drive forward—leveraging its quality, adaptability, and expanding global reach to achieve new milestones on the international stage.