India’s tyre exports have reached a record level of around AUD $50 billion (₹27,312 crore / US$3.09 billion) in FY26, marking a 9% increase compared to the previous year. The growth comes despite global supply chain disruptions, rising logistics costs and ongoing trade uncertainties.
The strong performance is being driven by Indian tyre manufacturers expanding their footprint across more than 170 countries, supported by capacity expansion and favourable trade agreements, including the Australia–India Economic Cooperation and Trade Agreement (ECTA).
Australia has emerged as a growing destination for Indian tyre exports under ECTA, which allows eligible tyres to enter the Australian market duty-free. Major Indian companies such as MRF, Apollo Tyres, CEAT and JK Tyre continue to supply passenger vehicle, commercial vehicle and off-the-road tyres to Australian buyers.
Australia currently imports an estimated AUD $60–65 million worth of new pneumatic rubber tyres from India each year, with expectations of further growth as trade ties strengthen under the bilateral agreement.
The United States remains India’s largest export market for tyres, accounting for around AUD $7.5 billion (₹4,082 crore) in shipments. It is followed by Germany, Italy, Brazil and France. At the same time, Indian manufacturers are increasingly diversifying into new markets to reduce dependence on any single region.
According to the Automotive Tyre Manufacturers Association (ATMA), the sector’s export success reflects sustained investments in technology, product innovation and manufacturing expansion. Over the past four to five years, tyre companies have invested approximately AUD $55 billion (₹30,000 crore) in greenfield and brownfield projects to boost production capacity and meet rising global demand.
ATMA Chairman Arun Mammen said the industry has shown strong resilience despite geopolitical tensions, shifting trade policies and economic uncertainty.
With an annual turnover of about AUD $185 billion (₹1 lakh crore), India’s tyre industry remains one of the country’s most export-driven manufacturing sectors, with overseas shipments contributing more than 25% of total industry revenue.
Industry experts say continued market diversification, trade agreements like ECTA, and deeper integration into global automotive supply chains will be key to sustaining export growth and strengthening India’s position as a global tyre manufacturing hub.