India’s tyre exports have reached a record AUD $5 billion (₹27,312 crore/US$3.09 billion) in FY26, registering 9 per cent growth over the previous year despite global supply chain disruptions, rising logistics costs and ongoing trade uncertainty.
The strong performance comes as Indian tyre manufacturers continue to expand their presence across more than 170 countries, supported by investments in manufacturing capacity and favourable trade agreements, including the Australia-India Economic Cooperation and Trade Agreement.
Australia has emerged as a growing market for Indian tyre exports under ECTA, which allows eligible Indian tyres to enter the Australian market duty-free. Leading Indian manufacturers, including MRF, Apollo Tyres, CEAT and JK Tyre, supply passenger vehicle, commercial vehicle and off-the-road tyres to Australian customers.
Australia currently imports an estimated AUD $60–65 million worth of new pneumatic rubber tyres from India annually, with industry observers expecting further growth as trade links deepen under the bilateral agreement.
The United States remained India’s largest export destination, accounting for around AUD $7.5 billion (₹4,082 crore) worth of tyre exports, followed by Germany, Italy, Brazil and France. However, Indian manufacturers have increasingly diversified their export markets to reduce dependence on any single region.
According to the Automotive Tyre Manufacturers Association (ATMA), the sector’s export success reflects sustained investment in technology, product development and manufacturing expansion.
Over the past four to five years, tyre makers have invested approximately AUD $5.5 billion (₹30,000 crore) in greenfield and brownfield projects to strengthen production capabilities and meet growing global demand.
ATMA Chairman Arun Mammen said the industry had demonstrated remarkable resilience despite geopolitical tensions, changing trade policies and economic uncertainty.
With an annual turnover of about AUD $18 billion (₹1 lakh crore), India’s tyre industry remains one of the country’s most export-oriented manufacturing sectors, with overseas shipments contributing more than 25 per cent of total industry revenue.
Industry experts say continued market diversification, trade agreements such as ECTA, and deeper integration into global automotive supply chains will be key to sustaining export growth and strengthening India’s position as a major global tyre manufacturing hub.
Correction: This news story has been updated for accurate AUD conversion.
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