Pirelli and Balkrishna Industries Announce Tyre Production Agreement in India

Italian tyre maker Pirelli and Indian manufacturer Balkrishna Industries (BKT) have announced a strategic agreement that will see the production of up to 800,000 Pirelli-branded tyres in India by the year 2030.

According to the announcement made on Thursday, the collaboration includes a second phase featuring the creation of a 50-50 joint venture. This venture will establish a dedicated production plant in the country focused on manufacturing high-value car tyres.

Both companies highlighted strong market fundamentals driving the agreement. Car registrations in India are estimated to increase by 5% to 7% annually through 2030. Furthermore, the partnering companies project that the premium car tyre market in the region will increase almost fivefold over the same period.

For Pirelli, the partnership provides a pathway to expand its operations within a high-growth potential country where it previously maintained only a commercial presence. Meanwhile, the agreement supports Balkrishna Industries in its strategic expansion into the passenger car tyre market.

Following the announcement, market reaction was positive, with BKT's shares rising by 3.55% as of 0648 GMT.

"This partnership between Pirelli and Balkrishna Industries highlights the growing attractiveness of the Indian market, driven by steady growth in car registrations and a rising demand for premium segments. Strategic manufacturing alliances like the planned 50-50 joint venture allow established global brands to scale efficiently while enabling domestic players to diversify into high-value categories like passenger car tyres. It is a practical approach to leveraging local manufacturing capabilities for long-term sector growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes