India Electric Vehicle Tire Market Research Report: Forecast (2025-2030)

Market Definition

Electric vehicle tires are essential components of electric vehicles that are prominently responsible for providing directional stability, enhanced endurance, and overall vehicle safety.

Market Insights & Analysis: India Electric Vehicle Tire Market (2025-30):

India Electric Vehicle Tire Market size was valued at around 8.39 Million Units in 2024 and is projected to reach 48.39 Million Units by 2030. Along with this, the market is estimated to grow at a CAGR of around 32.04% during the forecast period, i.e., 2025-30. 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.

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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:

• The NITI Aayog (National Institution for Transforming India) revealed that the investments in the EV transition in the country are estimated to be around INR 19.7 lakh crore (USD 266 billion) between 2020 and 2030. It would propel the need for greater financial liquidity & lower capital in assets & infrastructure for the same, which can be led by the NITI Aayog & World Bank to meet such requirements. 

Hence, it generates substantial opportunities for the tire industry to increase the production of EV tires and cater to the burgeoning demands. Moreover, the country's goal to maximize the adoption of Electric vehicles & achieve complete electrification by 2030, 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. 

India Electric Vehicle Tire Market Drivers:

Government Support to Boost Market Growth: The government of India is implementing various initiatives and policies that are enhancing the adoption of electric vehicle tires in the country. Policies, such as the Make in India initiative, aim to boost domestic manufacturing and support local industries. Investments in road infrastructure and manufacturing capabilities create a favorable environment for tire production and sales. Additionally, in 2024, the government introduced the PM E-DRIVE scheme with an outlay of 10,900 crores, effective from October 2024 to March 2026. The scheme aims for faster adoption of electric vehicles (EVs), setting up of charging infrastructure, and development of EV manufacturing eco-system in the country, leading to the increase in sales of the EV tire.

Similarly, in 2024, Michelin, Bridgestone, and Goodyear company along with potential investors Yokohama and Birla Tire, are set to invest around USD 348 million in India's manufacturing sector under a government scheme linking imports to local investment. This initiative, aimed at boosting domestic production of electric vehicle tires, follows the Centre’s import restrictions.

In 2024, the Electric Mobility Promotion Scheme 2024 (EMPS 2024) was launched by the Indian government to offer support of up to INR 10,000 per two-wheeler for about 3.33 lakh two-wheelers which would support the adoption of the EV tire market in India.

India Electric Vehicle Tire Market Challenges:

High Cost of Raw Materials: The cost of raw materials like natural and synthetic rubber, as well as oil-based components, can fluctuate due to market conditions, supply chain issues, and geopolitical factors. These fluctuations directly impact electric tire production costs and can squeeze profit margins. Electric Tire manufacturers are grappling with unprecedented raw material costs as natural rubber prices touched a 13-year high in June 2024. This surge has prompted leading companies such as CEAT and JK Tyres to increase prices to offset the rising costs. Moreover, according to Industry Experts, raw material prices rose by 5-6 percent in the next quarter i.e. July of 2024 impacting the overall prices of electric tires. This increase in raw material prices is primarily driven by supply shortages caused by adverse weather conditions in Southeast Asia. As India is heavily dependent on raw materials imports, the cost of electric vehicle tires would keep increasing which would further restrain the market growth in the coming years.

India Electric Vehicle Tire Market (2025-30): Segmentation Analysis

India Electric Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2025–2030 at the country levels. Based on the analysis, the market has been further classified as:

By Vehicle Type:

• Passenger Cars
• Commercial Cars
• Two-Wheelers

Based on the type of vehicles, the market is bifurcated into Passenger cars, light commercial vehicles(LCVs), and Medium & High Commercial Vehicles. Among all these, two-wheelers are anticipated to dominate the India Electric Vehicle Tire Market with the largest share during the forecast period due to increased penetration of two-wheeler electric vehicles in the Indian Market. Moreover, high traffic congestion issues due to a swift rise in the vehicle fleet, compel people to opt for two-wheelers as a convenient medium of transportation.

Besides this, massive support from the government through favorable policies, incentives, and subsidiaries, alongside encouragement for an accelerated purchase of EVs is also propelling the market growth. The FAME 2 subsidy by the Central Government allows consumers to buy electric vehicles including two-wheelers at a cheaper price. This encourages consumers to shift towards electric vehicles over fuel-powered vehicles. Additionally, with greater encouragement for EVs, Electric Two Wheelers are anticipated to continue gaining swift traction across the country and propel the demand for EV tires in the coming years. The country demonstrated total sales of electric two-wheelers much higher in 2021 by 132% than in 2020. Such aspects are set to contribute substantially to the mounting demand for EV tires and drive the industry in the coming years.

By Product Type:

• Radial Tires
• Bias Tires

Based on the product type, the market is bifurcated into Radial Tires, Bias Tires, and Composite Tires. Among all these, Radial Tires are anticipated to acquire the largest share in the India Electric Vehicle Tire Market during the forecast period. This growth is attributed to the predominant utilization of radial tires entwined with increasing investments by several prominent tire manufacturers in the development of EV Specific Radial Tires to cater to the growing EV sales in India. Backed by the unparalleled features of radial tires like ultra-low rolling resistance, higher durability, enhanced wet & dry traction, lower energy usage, and road performance, among others, radial tires stand out from their counterparts & constantly pave their way in the EV industry. For Instance:

• JK Tires recently unveiled a new range of Electric Vehicle-specific radial tires for the massive EVs across the country. The player mentions that this variant is equipped with in-house created & refined Treel TPMS sensors that perfectly suit the requirements of Light Commercial Vehicles, Passenger Vehicles, SUVs, electric trucks, buses, & two-wheelers.

Therefore, with such innovative technologies in Electric vehicle tires, Radial tires are set to make a substantial contribution to the market growth & shall continue generating lucrative opportunities for the leading players in the coming years.

India Electric Vehicle Tire Market Recent Development:

• 2024: Apollo Tyres and NATRAX partnered to establish a test track in India for validating tires for electric vehicles (EVs). The new facility will enable EV manufacturers to assess the cut and chip resistance of their tires.
• 2024: JK Tyre partnered with Vertelo to provide Connected Mobility Solutions’, a cloud-based monitoring system. Through this partnership, JK Tyre will be providing the brand’s new generation 255/70R22.5 JUXe EV tires equipped with connected Treel sensors with real-time monitoring for Vertelo’s fleet.
• 2024: Bridgestone invested USD 85 million to boost premium tire production and development in India. With this investment, the company will increase by 1.1 million tires annually by 2029 for its Pune and Indore manufacturing plants. Additionally, they will establish a satellite technology center at its Pune plant in 2025 to produce “Dan-Totsu*1 products” that will be customized optimally for the Indian market with “ENLITEN” technology*.

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