The Indian tyre industry is expected to reach a turnover of INR 1 lakh crore (approximately $14 billion) within the next three years, according to the Automotive Tyre Manufacturers Association (ATMA).

The industry has invested INR 35,000 crore (about $4.8 billion) in new capacity and debottlenecking over the past three years in response to expected growth in demand due to an increase in economic activity and infrastructure growth.

The new capacity will primarily benefit the truck and bus radial and passenger car radial manufacturing sectors.

Demand for tyres is also being driven by the premiumization of the passenger car market and the increasing preference for SUVs, which require higher profile tyres for 16-inch wheels and above.