Tyre Exports Touch Record ₹27,312 Crore In FY26 Despite U.S. Tariff Headwinds

India’s tyre exports rose to a record ₹27,312 crore in FY26, registering a 9% increase from ₹25,057 crore in the previous fiscal, even as higher tariffs in the U.S. weighed on shipments to the country, according to data shared by the Automotive Tyre Manufacturers Association (ATMA).

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The U.S. continued to be the largest overseas market for Indian tyre makers, accounting for exports worth ₹4,082 crore during FY26. However, its share in total exports declined to 15% from 17% in FY25 and 18% in FY24, reflecting the impact of trade-related measures introduced over the past year.

Commenting on the industry’s performance, ATMA Chairman Arun Mammen said on June 3 that tyre exports remained resilient despite supply chain disruptions, elevated logistics expenses and uncertainties in global trade.

U.S. Tariffs Impact Export Mix

The decline in the U.S. share followed a tariff increase imposed in August 2025, when duties on tyre imports from India were raised from 25% to 50%. This high charge has affected the competitiveness of Indian products in America and the firms have increased their market share elsewhere.

Though there have been challenges in terms of exports to the U.S., exports as a whole have been increasing.
Earlier this year, the situation was eased by the reduction of tariffs on Indian exports to the U.S. to 18% in February. It is anticipated that exports will be facilitated in the coming months.

Europe Becomes Significant Market For Growth

With the U.S. as an unfavorable place for business, the European market has turned out to be very significant for Indian exports.

Germany is now the second-largest exporter of Indian tyres, comprising 7% of total exports. Italy and Brazil contributed 5% each, while France represented 4% of exports. According to industry data, Indian tyres are now shipped to more than 170 countries.

The broader geographic spread helped offset weakness in individual markets and supported the industry’s export growth trajectory during the fiscal year.

Capacity Expansion Supports Growth

The export performance comes amid significant investments in manufacturing capacity. ATMA said tyre makers have invested nearly ₹30,000 crore in greenfield and brownfield expansion projects over the past four to five years.

The industry currently generates annual revenue of around ₹1 lakh crore, with exports contributing more than one-fourth of total turnover.

Although geopolitical developments and higher energy costs remain areas of concern for manufacturers, the sector’s latest export figures indicate sustained demand across global markets. The industry’s expanding international footprint and continued investment in capacity have helped maintain growth despite changes in trade policies and external market conditions.