JK Tyre plans ₹6,110 crore push into premium, smart and EV tyres

what happened

Indian tyre maker JK Tyre & Industries plans to put ₹6,110 crore into a shift toward premium tyres, products with embedded sensors and electric-vehicle solutions. According to Moody's, the company hopes this will restore profitability that is being squeezed by rising raw-material prices.

Of the total, ₹1,130 crore goes to expansion already under way and ₹4,980 crore to new projects to be completed over the next three to four years. Managing Director Anshuman Singhania told businessline that premium passenger tyres of 16 inches and above should rise from roughly 27–30 per cent of sales to more than 50 per cent within two years. He also aims to build the country's leading commercial truck-tyre service business within three years.

why it matters

For markets, the signal is that premium products and services could support margins, but only if costs are kept under control. In July–September, consolidated EBITDA fell 35.9 per cent to ₹343.14 crore, while revenue rose 20.7 per cent to ₹4,840.73 crore. Raw materials make up about 65–67 per cent of manufacturing costs, so their prices remain a key factor for investors.

market impact

JK Tyre and Indian tyre makers: a shift to premium products and fleet services could support margins, while raw-material costs remain the main risk.

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