Pirelli and BKT team up for India’s premium tyre production
Italian tyre maker Pirelli has formed a collaboration with India’s Balkrishna Industries (BKT) to manufacture up to 800,000 Pirelli-branded premium passenger tyres each year by 2030. Under the terms, BKT will produce the tyres at one of its newly constructed plants while meeting Pirelli’s technical and quality requirements. The initial arrangement operates through an off-take agreement.
This partnership covers both Pirelli and BKT-branded tyres, with sales directed toward India and global markets. BKT, which has historically specialized in off-highway tyres, is now expanding into passenger car and commercial vehicle tyres. The alliance accelerates BKT’s entry into the premium tyre category, a segment where Pirelli already holds a strong presence.
While Pirelli maintains commercial operations in India, it currently lacks local production facilities. The agreement seeks to bolster its position in the country’s growing high-end tyre market, where consumer demand is increasing steadily. The companies have also discussed the possibility of forming a 50:50 joint venture for a dedicated manufacturing plant in India, though no official timeline or additional details have been released.
Arvind Poddar, BKT’s chairman, emphasized that the partnership merges both companies’ strengths to capitalize on India’s expanding market while generating shared value. Andrea Casaluci, Pirelli’s CEO, highlighted how the collaboration combines BKT’s production capabilities with Pirelli’s technological advancements to promote premium tyre adoption in India.
India’s passenger vehicle registrations are expected to rise by 5–7% annually from 2025 through 2030. During the same period, the premium passenger tyre market is projected to grow nearly five times its current size. This development supports Pirelli’s broader expansion plans, particularly its recent approval of a €1 billion investment to expand its US manufacturing site in Rome, Georgia.
BKT’s transition into passenger and commercial vehicle tyres aligns with industry-wide shifts, as manufacturers increasingly diversify to meet rising consumer needs. The partnership enables Pirelli to secure a larger share of India’s expanding premium tyre segment while helping BKT establish itself in a competitive market.
Pirelli’s move into local production reflects its strategy to strengthen market penetration in high-growth regions. The company’s decision to invest in both India and the US shows its commitment to scaling operations in key markets where demand for premium products remains strong.
