Tires, an essential component of vehicles, are prominently responsible for providing directional stability, enhanced endurance, and overall vehicle safety. The automotive industry is vast and expanding swiftly worldwide, including in India, presenting substantial opportunities for the tire industry. With growing encouragement by the government to invest in Electric Vehicles (EVs) as a step toward curbing emissions and bringing environmental stability in numerous ways, the need for robust EV tires is stimulating across the country.
As the automotive industry and EVs are expanding, it is making a direct & positive influence on the tire industry in India. With the advent of next-generation technology-enabled EVs, the demand for exceptional tires complimenting these vehicles is generating growth opportunities for the automakers & tire manufacturers in the country, viewing this industry as an emerging area of opportunity.
Besides, since EVs are designed to bring instant acceleration & propulsion to run, their tires are developed with the potential to manage such torque at all times. Such factors, alongside many others cited, will help discover the aspects hinting toward an exponential growth of the EV Tire industry across India during the forecast period.
The India Electric Vehicle Tire Market is projected to grow at a CAGR of more than 100% during the forecast period, i.e., 2022-27. The market is driven by the rapidly increasing concerns over environmental degradation, excessive use of fossil fuels, and mounting emissions, leading to several health issues while challenging sustainability.
|Study Period||Historical Data: 2017-2020|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Apollo Tyres, Bridgestone, Ceat Tire, Continental AG, Cooper Tire & Rubber Company, Goodyear Tire & Rubber Co., Hankook Tire & Technology Co. Ltd., Michelin, Nokian Tyres, Pirelli & C. S.p.A., Yokohama Rubber Co. Ltd., Others|
|Unit Denominations||USD Million/Billion|
According to ICCT (The International Council on Clean Transportation), transport is a key contributor to carbon dioxide (CO2) emissions in India. Within the transportation sector, road transport is responsible for 90% of total energy consumption. It, in turn, is propelling a critical need to adopt eco-friendly alternatives like Electric Vehicles as a step toward bringing greater sustainability and directly influencing the tire industry.
Besides, the automotive sector is expansive in the country & remunerative for EVs. The government is also supporting the industry massively and encouraging the development of EVs and its associated sectors, including tires, through policies, frameworks, and regulations, among others. For instance:
Hence, it generates substantial opportunity for the tire industry to increase the production of EV tires and cater to the burgeoning demands. Moreover, with the country's goal to maximize the adoption of Electric vehicles & achieve complete electrification by 2030, it is creating massive opportunities for the EV tire industry in the country to contemplate in the future.
Furthermore, improving the economic conditions of the people, changing living standards, and greater inclination toward private ownership of vehicles are the other aspects hinting toward a rise in the sales of vehicles, including EVs, and positively influencing the tire demands in India. These aspects are very likely to prevail in the coming years and contribute to market expansion in the future.