Fuelled by robust domestic vehicle production, aftermarket demand and a surge in automotive exports, India's tyre industry is poised for transformative growth. A joint vision from the Automotive Tyre Manufacturers’ Association (ATMA) and PwC India projects that by 2047, production volumes could quadruple, while revenue is expected to multiply 12-fold to an estimated INR 13 trillion. This exponential financial expansion will be driven by a shift in the industry's revenue mix towards more premium products, rising raw material costs, a growing export share, the transition to electric vehicles and the emergence of servitisation models.

To achieve this ambitious vision, a strategic framework termed CHARGE has been proposed. This approach focuses on six critical levers: enhancing Customer relevance, upholding high-quality standards, fostering adaptability, building resilience through resource efficiency, driving growth via innovation and empowering strategic alliances. The framework is designed to help tyre manufacturers become more agile, customer-centric and technologically advanced to improve operational efficiency and global competitiveness.

Domestic growth will be primarily driven by strong original equipment and replacement markets. Rising incomes are boosting passenger and two-wheeler sales, while significant infrastructure investment is increasing commercial vehicle demand, in turn supporting aftermarket tyre sales. However, challenges such as domestic natural rubber availability and new mobility technologies could impact growth.

Concurrently, tyre exports are positioned for substantial expansion. Key strategies to accelerate international growth include innovation for specific use cases, securing new free trade agreements and enhancing cost competitiveness and brand perception. Nevertheless, exporters must navigate obstacles like volatile regulations and non-tariff barriers.

A significant trend will be the rise of servitisation, where fleet operators increasingly adopt professional tyre management services. Demand for these solutions, including tyre health monitoring and advisory services, will be driven by a focus on operational efficiency and customer requirements. For this market to reach its full potential, tyre companies must develop scalable, economically viable models while addressing data security and regulatory concerns.

Kavan Mukhtyar, Partner and Leader – Automotive, PwC India, said, "India’s journey towards Viksit Bharat 2047 presents a huge opportunity for the tyre industry, not only to meet the aspirations of its domestic customer base but also to exponentially scale up tyre exports, especially in the commercial vehicle and passenger vehicle segments across key markets like US and EU. Emerging consumer trends and mobility shifts, a dynamic global business environment and sustainability imperatives present a unique opportunity for the Indian tyre industry to transform itself and drive sustainable growth through 2047. Innovating at speed for global markets through advanced material engineering, finding sustainable alternatives for natural rubber and addressing sustainability imperatives throughout the value chain will be key to unlocking growth potential for the industry. Additionally, brand strengthening in export markets and investing in digital technologies across the value chain will be essential to drive productivity and a sustained global competitive advantage.”

Arun Mammen, Chairman, Automotive Tyre Manufacturers’ Association (ATMA), said, "The Indian tyre industry stands at the cusp of a transformational journey, driven by rapid economic growth, evolving mobility trends and an expanding global footprint. The findings of the ATMA-PwC report underscore the industry’s immense growth potential, with revenue projected to grow 12-fold by 2047. This growth will be fuelled by a shift towards premiumisation, sustainability-led innovation and a strong focus on technology and exports. As we move towards ‘Viksit Bharat 2047’, the tyre industry is poised to play a pivotal role in enabling India’s automotive ambitions to build a resilient and future-ready sector."

Sanjay Dawar, Partner and Leader – One Consulting, PwC India, said, “The Indian tyre industry is at an inflection point, with the potential to create significant economic value and strengthen India’s global competitiveness. Achieving this 12-fold revenue growth will require a holistic approach – one that brings together innovation, sustainability, digital transformation and strong partnerships across the ecosystem. At PwC, we are committed to working alongside industry stakeholders to co-create strategies that can accelerate momentum, build resilience and help realise the Viksit Bharat 2047 vision."

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Kumho Tire Co., Ltd. said it achieved a series of strong results in ESG evaluations in 2025, reflecting progress in sustainability, governance and risk management.

The company received a Gold medal for the second consecutive year from EcoVadis, which assesses corporate sustainability performance across environment, labour and human rights, ethics and sustainable procurement. In 2024, Kumho Tire ranked in the top 5 per cent of about 150,000 companies assessed globally. In 2025, its scores improved notably in labour and human rights and ethics, supported by stronger ethical management systems and an expanded data management scope.

Kumho Tire also secured an overall A rating in the 2025 ESG assessment by the Korea ESG Standards Institute. The company said it improved by one grade year on year after strengthening management practices, including building a human rights management framework, setting employee diversity targets, increasing information security investment and introducing board evaluations.

The company has participated in the Carbon Disclosure Project since 2022 and in 2025 received an A- rating for water security, recognising its water management capabilities. It was also placed on the highest A List in the Supplier Engagement Assessment, citing progress in climate change response and ESG management across the supply chain.

Kumho Tire has maintained an AA rating in ESG assessments by MSCI since 2022 and was included as a Yearbook member in S&P Global’s Corporate Sustainability Assessment, ranking within the top 15 per cent of the auto components sector. It was also recognised at the 2025 Korea Sustainability Conference, organised by the Korean Standards Association, ranking first for a third consecutive year in the tyre category of the Korean Sustainability Index. Its sustainability report was selected as an outstanding report for a second consecutive year in the manufacturing category of the Korean Readers’ Choice Awards.

Jung Il-taek, chief executive of Kumho Tire, said: “Kumho Tire manages issue-specific goals and initiatives in an integrated manner under its ESG management strategy. We will continue to strengthen and embed ESG management to build a solid foundation for sustainable growth and to develop into a global brand with credibility and authenticity.”

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Kumho Tire Co., Ltd. said it signed a partnership agreement late last year with UK-based driving simulator specialist Ansible Motion to develop next-generation digital tyres.

The agreement was confirmed on 5 January. The signing ceremony was attended by Kim Young-jin, executive vice-president and head of research and development at Kumho Tire, and Dan Clark, chief executive of Ansible Motion, along with other representatives from both companies.

The partnership is being pursued under the slogan “Kumho Tire with Ansible Motion: Driving the Future with Digital Tires”. The two companies agreed to collaborate on enhancing tyre performance validation systems using advanced digital simulation technology, with a focus on improving competitiveness in tyres for electric vehicles and high-performance cars.

Ansible Motion provides driving simulator technology designed to replicate real-world road conditions with high precision. Its systems allow vehicle dynamics, driving safety and ride comfort to be assessed in a virtual environment.

Kumho Tire said it expects the introduction of Ansible Motion’s latest driving simulator into its research and development processes to reduce the time and cost associated with vehicle testing and prototype production. The company also aims to enable more accurate and efficient performance verification from the early stages of development and to strengthen its digital-based R&D capabilities in response to changes in the mobility sector.

Kim said: “Cooperation with Ansible Motion will serve as an opportunity for Kumho Tire to take a significant step forward in transforming its research and development paradigm towards a digital focus. By actively utilising advanced simulation technology, we will introduce high-performance, high value-added products optimised for the future mobility environment and continue to strengthen our competitiveness in global markets.”

Clark said: “Our collaboration with Kumho Tire will be an important example of how driving simulation technology can accelerate innovation in the tyre industry. We look forward to contributing to the advancement of the global mobility industry through the technical synergy between our two companies.”

The partnership forms part of Kumho Tire’s wider digital transformation and sustainable technology strategy. The company plans to apply advanced driving simulation tools across its R&D processes to improve development efficiency and precision, with the aim of accelerating digital tyre development for electric and high-performance vehicles.

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Bridgestone Aircraft Tire Europe, a subsidiary of Bridgestone Corporation, has received a Gold rating from EcoVadis, the sustainability assessment platform, placing the company among the top five per cent of the 130,000 companies evaluated worldwide across 220 industry sectors.

The result marks a sharp improvement from recent years. The company achieved a Bronze rating two years ago and ranked in the top 15 per cent last year.

“After receiving Bronze just two years ago, this EcoVadis Gold Medal recognises the rapid progress we’ve made on our sustainability journey,” said Jean-Philippe Minet, managing director of Bridgestone Aircraft Tire Europe. “Last year, we were in the top 15 per cent and advancing to the top five per cent this year reflects the collective effort and commitment of the BAE team. This achievement showcases our progress in building a more sustainable commercial aviation sector.”

The 2025 Gold rating follows a year in which the company completed a full carbon footprint assessment covering Scopes 1, 2 and 3, carried out an energy audit and developed a decarbonisation roadmap.

It also reported zero lost-time accidents for a fourth consecutive year and implemented projects aligned with the Bridgestone E8 Commitment, including partnerships supporting sports, charitable activities, cancer-focused organisations and initiatives for underprivileged children.

EcoVadis assesses how organisations integrate sustainability into business and management systems across four pillars: environment, labour and human rights, ethics, and sustainable procurement.

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Nokian Tyres has earned a leadership-tier A- score from CDP for its climate change mitigation efforts for the sixth consecutive year. CDP, a global environmental disclosure non-profit, assesses thousands of companies on their transparency, risk management and tangible actions towards decarbonisation.

An A- rating places Nokian Tyres among the highest performers, reflecting robust ambition, target-setting and operational execution. A prime example of this commitment is the company’s pioneering tyre factory in Romania, which operates as the world’s first full-scale zero-CO₂-emissions production facility. It runs entirely on renewable energy, including wind, hydro, biomass and solar power, and even generates manufacturing steam without fossil fuels.

Supporting these operational milestones, Nokian Tyres has set a long-term goal of achieving net-zero greenhouse gas emissions by 2050. Furthermore, the company’s near-term emission reduction targets have received validation from the Science Based Targets initiative for aligning with the 1.5°C warming limit, underscoring a strategy grounded in contemporary climate science.

Teppo Huovila, Vice President – Quality and Sustainability, Nokian Tyres, said, “Achieving a leadership-level score for the sixth year in a row shows that climate action is deeply embedded in how Nokian Tyres develops its operations and products. We want to deliver solutions that make a real difference, both for the environment and for the drivers who choose our tyres. Our actions for reducing emissions and improving sustainability translate into safer, more efficient and environmentally responsible mobility.”

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