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Tire giants redraw India playbooks; Indian firms rework overseas
Author: Vinod Nedumudy (vinod@helixtap.com)
04 Jul 2025, 01:04 PM SGT
Highlights
India’s tire sector is at an inflection point, shaped by domestic ambitions and recalibrated global strategies. As international majors like Continental, Bridgestone, and Michelin double down on premium and local production, and local champions such as Apollo and MRF pursue global growth and EV opportunities, the industry’s future is being proactively redefined.
Continental realigns for premium passenger growth
Continental, the German tire major, has set a new course in India by discontinuing its truck and bus radial (TBR) tyre business. The move, part of a strategic realignment, underscores the company’s decision to channel its resources into the more profitable passenger car and light truck (PLT) segment. With its Modipuram plant in Meerut in Uttar Pradesh state ceasing TBR production in June 2025, Continental aims to safeguard competitiveness amid intense pricing pressure and shifting customer demand.
The company plans to invest INR100 crore (US$11.68 million) in upgrading manufacturing capabilities and expanding its premium PLT product range at Modipuram. This includes introducing tires tailored for Indian driving conditions and launching the CrossContact AT2 all-terrain tire later this year. Continental’s decision reflects a larger trend of international firms recalibrating their India strategies, focusing on high-value segments while addressing local market complexities. Its Faridabad-based sales operations and Bengaluru IT hub remain integral to its India footprint, reinforcing its ‘in the market, for the market’ philosophy.
MRF drives ahead in EV and defence segments
While global players like Continental narrow their focus, homegrown giant MRF is seizing emerging opportunities. The company is firmly establishing itself as a major supplier of tires for electric vehicles (EVs), catering to models across two-, three-, and four-wheeler categories. From Maruti’s eVitara to Tata’s Nexon EV and a host of electric scooters, MRF’s EV tyres are engineered with low rolling resistance and noise-reduction features, designed to enhance battery efficiency and ride comfort.
MRF’s role extends beyond civilian mobility. Its exclusive position as the tire supplier for India’s defence aircraft and helicopters, including the Sukhoi and Tejas jets, highlights its strategic importance. While defence remains a modest contributor to overall revenue, it is a sector of high prestige, aligned with national priorities such as ‘Make in India’.
On the export front, MRF is building momentum. With 20–25% growth in exports over recent quarters, the company now ships to more than 70 countries and aims to increase exports to 15% of total turnover. To support its ambitions, MRF has invested significantly in expanding production capacity, with over INR 2,800 crore (US$327 million) in capital expenditures across the two past fiscals. This dual strategy of domestic leadership and global expansion positions MRF as a formidable force in a transforming tire sector.
Bridgestone eyes tier 3 and 4 India with premium-mass strategy
Bridgestone India, the local arm of the Japanese tire major, on the other hand, is banking on recovery in replacement demand and deeper market penetration to drive growth. After disruptions in 2024 dented sales, the company projects a 7-8% rebound in replacement tyre demand in 2025. Bridgestone is not just focusing on metro and tier-1 cities—it is expanding its presence into tier 3 and 4 towns, aiming to capture India’s fast-growing mass-premium segment.
The company’s US$85-million investment plan, announced last year-end, targets capacity and capability upgrades at its Pune and Indore plants. By 2029, Bridgestone India expects to add 1.1 million tires annually to its production. This capacity boost will support the rollout of ENLITEN technology-based tires—designed for fuel efficiency, extended life, and lower environmental impact—suitable for both conventional and electric vehicles. The plan also includes establishing a satellite technology centre at the Pune plant to develop tires that Bridgestone claims will be a leader in their respective segments.
Bridgestone’s strategy reflects a calibrated approach to balancing premium aspirations with the realities of price-sensitive Indian consumers, while embedding sustainability at the heart of its operations.
Michelin ramps up local production to address new reality
French tyre major Michelin, which has long relied on imports for its premium passenger vehicle (PV) tires in India, is now setting up local production to overcome regulatory hurdles. With import restrictions on pneumatic tires tightening since 2020, Michelin has committed Rs 564 crore (approximately US$65.87 million) to establish PV tire manufacturing at its Chennai plant.
Targeting premium SUVs initially, Michelin plans to gradually expand its product portfolio to cater to broader market needs. The local manufacturing push is intended not just to offset import challenges, but also to demonstrate Michelin’s technological strengths with products adapted to Indian roads. Although certain raw materials and advanced tire types will still be imported, the Chennai facility is expected to provide a significant fillip to Michelin’s ambitions in India’s high-value passenger tire segment.
Michelin’s move illustrates how global players are responding to India’s policy emphasis on domestic manufacturing while positioning themselves for long-term growth in a market with rising demand for high-performance tires.
Apollo shifts gears, pairing closure with expansion
While India’s tire market presents growth opportunities, Apollo Tyres is grappling with headwinds in its global operations. The company has announced plans to shut down production at its Enschede plant in the Netherlands by 2026, citing unsustainable costs amid rising energy and labour expenses, weak demand, and competition from low-cost manufacturers. The decision marks a difficult step in Apollo’s ongoing efforts to streamline operations and ensure long-term viability in Europe.
Yet even as it scales back in one part of Europe, Apollo is pushing forward in another. The company has secured new distribution agreements in France and Scandinavia to expand the reach of its Vredestein premium bicycle tyre range. With products like the Superpasso Pro, Fortezza Senso Superiore and Aventura gaining traction among cyclists, Apollo is building a presence in Europe’s growing performance cycling market.
Apollo’s approach highlights the balancing act for the Indian major: trying to defend domestic leadership despite relatively poor results last quarter, while navigating the shifting currents of global markets.
The road ahead: Reshaping India’s tire sector
The dynamics unfolding in India’s tire sector signal a period of strategic recalibration and innovation. Global majors are refining their India playbooks to focus on premium and high-margin segments, while domestic firms like MRF and Apollo seek to consolidate home market strength and grow internationally. As the automotive landscape evolves—with the rise of EVs, regulatory shifts, and a stronger push for localisation—tire makers will need to balance technology, cost competitiveness, and market reach.
India, already among the largest automotive markets globally, offers ample headroom for growth. The ability of tire manufacturers to align with national priorities, cater to shifting consumer preferences, and embrace sustainable practices will ultimately define who leads the race in this next phase of industry transformation.