India's Tire Industry Poised for Growth in FY2026
Date：2025/7/11
According to a recent industry assessment by ICRA, India's tire industry is projected to grow by 6-8% in FY2026, primarily driven by replacement demand in the domestic market. This forecast comes as the sector faces headwinds from U.S. tariffs impacting export markets and elevated natural rubber prices limiting margin recovery.
The rating agency expects a slight improvement in operating margins this fiscal year, following a 290-basis-point contraction in FY2025. Stabilizing natural rubber prices, manufacturers' price hikes, and moderate crude oil costs will support this recovery, though natural rubber prices remain high despite recent corrections. In Q4 FY2025, ICRA estimates a 3% sequential and 8% year-on-year growth in the Indian tire industry's revenue, supported by stronger replacement demand and sustained export volumes, even as original equipment demand lags. ICRA forecasts a 7-9% revenue growth for major tire manufacturers in FY2026, driven by domestic sales and an improved product mix.
India's tire exports continue to face challenges from U.S. import tariffs, with inflation and competitiveness emerging as key risks for domestic manufacturers. After a 15% increase in the previous fiscal year, tire export volumes declined by 9% in FY2025, though this reduction had minimal impact on domestic capacity utilization.
The industry plans a modest capacity expansion over the next three years, with an estimated investment of ₹2,000-2,500 billion. This growth reflects manufacturers' confidence in sustained domestic demand despite external market pressures.
Information source: Comprehensively compiled from securities information and network information.
Disclaimer: The content contained in it comes from the Internet, WeChat public account and other public channels, we have a neutral attitude towards the views in the article, and this article is for reference and communication only. The copyright of the reprinted manuscript belongs to the original author and institution, if there is any infringement, please contact us to delete.