Indian tyre exports hit record Rs 27,312 crore FY26

Record exports, but the US mix weakens

India’s tyre exports rose to a record Rs 27,312 crore in FY26, even as trade barriers in the United States reduced the country’s share in one of the industry’s most important overseas markets. The United States remained the largest destination by value, but its share of India’s tyre export basket fell. The shift highlights how tariff actions can change trade flows even when headline export numbers stay strong. For Indian manufacturers, the challenge has been to protect margins while keeping volumes steady. The data also suggests that diversification toward Europe and other regions is becoming a structural response rather than a short-term adjustment. Indian tyres are now exported to more than 170 countries, giving exporters multiple routes to maintain growth.

What changed in the US market

The most direct trigger was the US tariff action on Indian tyre imports. The tariff was hiked from 25% to 50% in August 2025, raising landed costs for importers and squeezing pricing flexibility for Indian suppliers. In FY26, the US accounted for 15% of total Indian tyre exports by value, translating to Rs 4,082 crore. That was lower than the previous fiscal year, when the US share was 17% and the export value was around Rs 4,260 crore. In FY24, the US share stood at 18%, underscoring a multi-year decline in mix rather than a one-off fluctuation. For exporters, a lower share does not automatically mean lower relevance, but it does indicate pressure on competitiveness in that market.

FY26 export growth stayed resilient

Despite the setback in the US share, India’s tyre exports still expanded at a healthy pace. Exports rose 9% year-on-year from Rs 25,057 crore in FY25 to Rs 27,312 crore in FY26, marking the second consecutive year of 9% growth. Separate industry and government datasets cited in the material place FY25 exports at Rs 25,051 crore, a small variation versus Rs 25,057 crore. Either way, the broad picture is consistent: FY25 exports were a little above Rs 25,000 crore and FY26 scaled a new record. JK Tyre and Industries managing director Anshuman Singhania also highlighted that the industry is export-heavy, with outbound shipments surpassing Rs 25,000 crore in FY25.

Europe and emerging markets take a larger role

To preserve margins and maintain volume growth, domestic players increased focus on the European Union and other overseas markets. Germany emerged as the second-largest destination for Indian tyre exports in FY26 with a 7% share. It was followed by Italy (5%), Brazil (5%), and France (4%), based on the FY26 destination mix mentioned. The data also points to increased procurement by these markets as exporters recalibrate. In FY25, Germany’s share was cited at 6%, Brazil at 5%, and France at 4%, indicating Europe’s role was already significant before the FY26 shift. Another FY25 destination list also included the UAE at 4%, showing that the Middle East remains relevant even if it is not in the FY26 top list provided.

Demand mix: domestic still dominates volumes

Even with record export values, India’s tyre sector remains primarily driven by domestic demand. The sector’s domestic market accounts for 75% of total volume, with exports contributing the remaining 25%. Replacement demand is a central driver and accounts for half of annual sales, supporting steadier consumption patterns even when OEM demand is soft. The outlook referenced expects steady revenue growth of 7% to 8% this year, with OEM off-take likely subdued and exports steady. Export volume (the 25% share) is expected to grow 4% to 5%, supported by demand from Europe, Africa and Latin America. This mix matters because it frames exports as a meaningful growth engine, but not the sole determinant of industry health.

Why the tariff shock matters for pricing and competitiveness

Tariff increases typically pressure exporters in two ways: by raising end-market prices and by compressing supplier margins if price hikes cannot be fully passed through. With the US tariff moving to 50%, Indian suppliers face a tougher negotiation environment with importers who can compare global alternatives. A falling US share from 18% in FY24 to 15% in FY26 suggests that some demand may be shifting or that sourcing strategies are changing. At the same time, the US remains the largest destination in value terms, which means companies cannot ignore the market even when diversification accelerates. The industry response described focuses on reallocating growth efforts rather than retreating from exports. Over time, such changes can influence capacity planning, product mix, and customer concentration risk.

Key numbers at a glance

Destination mix: the basket is broadening

Market impact: what investors and businesses can track

The record export value in FY26 signals continued external demand, but the composition change is the bigger takeaway. A lower US share combined with a tariff hike indicates that future export growth may depend more on Europe and other regions than it did a few years ago. For investors, the mix shift can affect realisations because pricing, compliance needs, and competitive intensity differ by geography. The domestic market’s 75% volume share provides a stabilising base, especially when exports face policy uncertainty. The near-term expectations of 7% to 8% revenue growth and 4% to 5% export volume growth underline steady, not explosive, momentum. Replacement demand being about half of annual sales is another factor supporting predictability. Companies with wider market access across the 170-plus countries mentioned may be better positioned to manage policy shocks.

Conclusion

India’s tyre exports reached Rs 27,312 crore in FY26, extending a second straight year of 9% growth, but the US tariff hike to 50% coincided with America’s share slipping to 15%. Exporters are responding by deepening presence in Europe and other markets, with Germany rising as the second-largest destination and Italy, Brazil, and France also featuring prominently. The next key watchpoints are how export mix evolves across FY27 and whether demand from Europe, Africa, and Latin America sustains the expected 4% to 5% export volume growth.