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.
By Vehicle Type:
Passenger Vehicles are anticipated to dominate the India Electric Vehicle Tire Market with the largest share during the forecast period. This dominance attributes to the swift improvement in the economic standards of the people and their increasing disposable income, demonstrating a greater inclination toward private ownership of vehicles and triggering the sales of automobiles, including EVs, and directly influencing the tire market. Besides, massive support from the government through favorable policies, incentives, and subsidiaries, alongside encouragement for an accelerated purchase of EVs. For instance:
Backed by such encouragement, the EV industry is swiftly gaining pace, demonstrating a rise in the sales of passenger cars & its influence on the elevating demand for EV tires across India. For Instance:
Two-Wheelers are anticipated to emerge as an area of opportunity in the Electric Vehicle Tire Market across India during the forecast period. It owes principally to the high traffic congestion issues due to a swift rise in the vehicle fleet, compelling people to opt for two-wheelers as a convenient medium of transportation.
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. In fact, the country demonstrated a 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.
On the other hand, Commercial Vehicles are projected to make a substantial contribution to the overall expansion of the EV Tire Market in India during the forecast period. It owes principally to the greater government focus on developing the public transportation infrastructure, exemplifying a rise in the procurement of commercial electric vehicles, and representing favorable segments towards the inclusion of EVs in the priority sector.
Besides, since these vehicles operate for longer hours and cover miles per day, the need for timely maintenance & replacement for tires is elevating and augmenting the demand for EV tires. Moreover, owing to the growing concerns over environmental degradation and the high number of lower-income people, the population using public transport in India is massive. It, in turn, projects a high prominence of robust transportation infrastructure, backed by government support, exhibiting EVs for commercial use & boost the overall growth of the India Electric Vehicle Tire Market in the coming years.
By Product Type:
Radial Tires are anticipated to acquire the largest share in the India Electric Vehicle Tire Market during the forecast period. This growth attributes 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:
Therefore, with such innovative technologies in Electric Vehicles 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.
On the geographical front, the India Electric Vehicle Tire Market witnessed growth throughout the country, owing to the active participation of state governments & their encouragement to buy EVs through frameworks, policies, incentives, etc. In a bid to promote sustained mobility, different regions in the country waived off the prevailing road tax partially or fully for electric vehicles.
Kerala & Telangana are aiming for massive growth in the number of Electric vehicles, including public buses, by 2025 to boost the transportation infrastructure, reduce emissions, and address congestion issues. On the other hand, Uttar Pradesh, followed by the capital city, New Delhi, and the state of Bihar, has been dominant in the industry, acquiring the largest market share by demonstrating high EV sales & their influence on the EV Tires.
Regulatory Landscape in the India Electric Vehicle Tire Market
As the country is focused on bringing electrification across different sectors & prominently in the automotive industry, the government of India announced the National Electric Mobility Mission Plan (NEMP) 2020 with several strategies and components, such as the procurement of hybrid electric vehicles.
This plan also comprises incentives, and Supply Side incentives, in connection with demand incentives and firm commitments for producing Electric Vehicles by stimulating retro-fitment of on-road vehicles and their hybrid kit.
Under the plan, the government announced a scheme for Faster Adoption & Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India). Around 30 Original Equipment Manufacturers (OEM) and 137 Models of all categories of vehicles are registered under this scheme. Till now, the Total incentive amount disbursed is about INR 359 Crores for 2.8 Lakhs vehicles.
Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles would be given green license plates and exempted from permit requirements. It also issued a notification advising states to waive road tax on EVs, which will help reduce the initial EV cost.
Recent Developments in the India Electric Vehicle Tire Market
Since the adoption of EVs on a large scale is yet to be fledged across the country, the lack of well-established charging infrastructure is contributing to slow-paced vehicle sales. It, in turn, is demonstrating a restraining effect on the EV Tire market across India.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The India Electric Vehicle Tire Market is projected to grow at a CAGR of more than 100% during 2022-27.
A. The improper charging infrastructure EV is limiting the vehicle sales and directly impacting the tire industry in the country, owing to which the India Electric Vehicle Tire Market might witness challenges in the expansion during the forecast period.
A. Two-wheelers is anticipated to emerge as an area of remunerative opportunities for the leading players in the India Electric Vehicle Tire Market during the forecast period.
A. Uttar Pradesh with highest registered vehicles would offer substantial growth prospects in the India Electric Vehicle Tire Market during 2022-27.