BKT ties up with Pirelli for premium car tyres as rivals commit ₹8,600 crore

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Rising SUV sales, premiumisation and demand for larger tyres are reshaping India’s passenger-vehicle tyre market. Established manufacturers have announced ₹8,600 crore in capacity expansion, while BKT is seeking to diversify beyond off-highway tyres through assured orders, technical expertise and a future manufacturing venture with Pirelli.

By Amit Vijay Mohile _12460

Updated - October 22, 2026 at 09:20 PM. | Mumbai

BKT will separately pay Pirelli in euros for testing and technical services covering its own passenger-car, SUV and two-wheeler tyres

Balkrishna Industries (BKT) on Thursday announced a partnership with Italian tyre maker Pirelli to manufacture premium passenger car and SUV tyres at its Bhuj plant in Gujarat, targeting annual production of up to 8 lakh Pirelli-branded tyres by 2030. The companies have not disclosed when production will begin.

Rajiv Poddar, BKT’s Joint Managing Director, said the partnership would accelerate its existing plans to enter new tyre categories, describing Pirelli’s decision as “a recognition of the manufacturing strength, quality and expertise we have built over decades”.

Under three agreements signed on October 22, the companies plan a 50:50 joint venture to establish a new tyre factory in India, sharing manufacturing capacity equally. BKT will separately pay Pirelli in euros for testing and technical services covering its own passenger-car, SUV and two-wheeler tyres. The venture’s incorporation is targeted by December 31, 2030, although investment, capacity and commissioning details remain undisclosed.

The partnership comes as Bridgestone, Michelin, CEAT and Apollo Tyres have announced combined investments of approximately ₹8,600 crore to expand Indian production. Apollo accounts for ₹5,810 crore, CEAT ₹1,314 crore, Bridgestone approximately ₹750 crore ($85 million) and Michelin nearly ₹686 crore.

BKT has separately outlined a ₹6,800 crore investment programme through FY29 covering off-highway and on-highway tyres, carbon black and infrastructure. Whether the Pirelli venture requires additional investment remains unclear.

India’s premium tyre opportunity extends beyond luxury cars. SUVs account for more than half of passenger-vehicle sales, driving demand for larger 17-inch to 22-inch tyres. Electric vehicles require tyres designed for greater weight, higher torque and reduced noise, while the expanding vehicle population supports replacement demand.

Manufacturing orders, technology support

Under the initial offtake agreement, Pirelli has committed to minimum annual purchases, although year wise quantities, contract value and margins remain undisclosed. Pricing will reflect actual raw-material and conversion costs, providing demand visibility without guaranteeing profitability.

The arrangement gives BKT, traditionally an off-highway tyre specialist serving agriculture, mining and construction, an established premium customer while it develops its own passenger-car brand. Pirelli’s trademark and specified know-how can be used only for tyres supplied to Pirelli and its affiliates.

Marco Tronchetti Provera of Pirelli, said India’s economic development and growing demand for technologically advanced tyres made it important to the company’s international strategy.

BKT targets ₹23,000 crore in revenue by FY30, with on-highway tyres contributing approximately 20 per cent, or ₹4,600 crore.

Competition builds capacity

Bridgestone, which reported around 20 per cent of India’s passenger-vehicle replacement tyre market in 2024, plans to add 11 lakh tyres annually at Pune by 2029. CEAT plans another 35 lakh annually at Chennai by FY28, while Michelin is expanding premium-car tyre production and Apollo is adding passenger-car and commercial-vehicle capacity.

BKT and Pirelli expect India’s premium car-tyre market to grow almost fivefold between 2025 and 2030, without disclosing its starting size.

For Pirelli, the partnership offers Indian manufacturing capacity; for BKT, the challenge is building a profitable passenger-car tyre business against established competitors.

Published on October 22, 2026

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