Pirelli and BKT agree to produce premium car tyres in India by 2030

what happened

Italian tyre maker Pirelli and India's Balkrishna Industries (BKT) have agreed to produce up to 8,00,000 premium car tyres bearing the Pirelli brand in India by 2030, according to Moody's. In the first phase, BKT will make the tyres at one of its recently built factories, which marks Pirelli's first step toward a local production base.

The partners are also weighing a 50:50 joint venture for a dedicated plant focused on high-value car tyres, though that depends on certain conditions. Such a facility would make tyres under both Pirelli and BKT labels for home and export markets. The investment amount, plant location and planned capacity have not been disclosed.

The deal follows growth in India's passenger vehicle sector and rising demand for premium tyres. The companies project car registrations in India to rise 5-7% a year over 2025-2030, while the premium car tyre market should expand nearly fivefold in that period. Pirelli sells in India but has no factory there, whereas BKT, known mainly for off-highway tyres for farming, mining and construction, gains entry into passenger car tyres.

why it matters

For markets this is mainly a company-level story. Pirelli gains a local production base and a route into the high-value segment, while BKT broadens its product range. With the joint venture still conditional, its financial effect is hard to gauge for now.

market impact

Pirelli and BKT shares: expanding Indian output and BKT's move into car tyres supports growth prospects in that segment.

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