BKT and Pirelli Sign India Deal to Make 8 Lakh Premium Car Tyres a Year by 2030

BKT and Pirelli Move Into Premium Car Tyres in India

Balkrishna Industries, better known as BKT and long a specialist in off-highway tyres, has signed a three-part agreement with Italy's Pirelli Tyre to manufacture premium passenger car tyres in India. The deals were signed on 22 October and centre on producing up to 8 lakh Pirelli-branded tyres a year by 2030 at BKT's upcoming passenger car radial plant in Bhuj, Gujarat.

The structure comes in two phases. In the first, BKT manufactures Pirelli-branded tyres to Pirelli's specifications under an offtake agreement and sells them to Pirelli and its affiliates in India and overseas. Production is expected to begin in the next financial year, according to BKT joint managing director Rajiv Poddar.

Agreement	What It Covers
Framework Agreement	Structure and timelines for a 50:50 joint venture; incorporation targeted by 31 December 2030
Offtake Agreement	BKT makes Pirelli-branded passenger car tyres at its Bhuj plant; Pirelli commits to minimum annual purchases
Service Agreement	Pirelli provides testing and technical support for BKT-branded car, SUV and two-wheeler tyres

Why India, and Why Now

Pirelli has sold tyres in India for years but has never built them here, and this agreement is its first manufacturing foothold. The pull is the market itself. India's car registrations are expected to rise 5-7% a year between 2025 and 2030, and the premium car tyre segment is projected to grow almost fivefold over the same period, according to the two companies.

The second phase envisages a dedicated joint venture plant, owned 50:50, with a four-member board on which each partner nominates two directors and the chairmanship rotates. Manufacturing capacity would be shared equally, and the plant would serve both the Pirelli and BKT brands in India and abroad. The joint venture agreement itself is yet to be signed.

The Wider Tyre Capex Race

The deal lands in the middle of a broader expansion by global and Indian tyre makers. Bridgestone, Michelin, CEAT and Apollo Tyres have announced combined investments of roughly ₹8,600 crore to expand Indian production, with Apollo alone accounting for ₹5,810 crore, CEAT ₹1,314 crore, Bridgestone about ₹750 crore and Michelin close to ₹686 crore. BKT has separately outlined a ₹6,800 crore programme through FY29 covering off-highway and on-highway tyres, carbon black and infrastructure.

What This Means for Buyers

Local production of premium tyres should, over time, make replacement sets for cars like the Creta, Seltos and XUV700 more competitive against imports, though nothing changes overnight. Until the joint venture plant is commissioned, most of the effect will be on supply reliability rather than price. For BKT, the value is strategic: it gains a premium customer and Pirelli's testing support while it builds its own passenger car brand. Track how this reshapes the market on our sales and market data pages, and follow further industry moves on our news feed.

(Sources: Balkrishna Industries stock-exchange filing dated 22 October 2026, Pirelli press release, The Hindu BusinessLine, Financial Express. Image credits: Wikimedia Commons contributors, CC BY 4.0 and CC BY-SA 4.0)

::KEY_NUMBERS:: Annual Pirelli-branded output | up to 8 lakh tyres JV stake | 50:50 JV incorporation target | 31 December 2030 India car registrations growth | 5-7% a year to 2030 ::TLDR:: BKT will make Pirelli-branded passenger car tyres at its Bhuj plant under an offtake agreement A 50:50 joint venture and a new dedicated plant are planned as a second phase India's premium car tyre market is seen growing almost fivefold by 2030 Production is expected to begin in the next financial year ::TIMELINE:: 1987 | Balkrishna Industries founded 22 October 2026 | Framework, offtake and service agreements signed FY27 | Production of Pirelli-branded tyres expected to begin 31 December 2030 | JV incorporation target ::GLOSSARY:: PCR | Passenger Car Radial, the standard construction for car tyres Offtake agreement | a contract where one firm agrees to buy a set volume of another's output CBU | Completely Built Unit, a fully imported vehicle ::PULLQUOTE:: For Pirelli, which has sold in India without building here, this is the first real manufacturing footprint. For BKT, it is a shortcut into a segment it has never played in. ::PROS:: Brings premium local tyre manufacturing to India Gives BKT a marquee customer for its new passenger car line Reduces import dependence for premium tyres Testing support from Pirelli will lift BKT's own products ::CONS:: Joint venture is not yet signed and could still change Capacity and investment figures remain undisclosed Timelines stretch to 2030 ::POLL:: Will local premium tyre production lower replacement costs for Indian car owners? || Yes, over time || No, prices will stay high || Too early to say ::SOURCES:: Balkrishna Industries stock-exchange filing, Pirelli press release, The Hindu BusinessLine