Pirelli and BKT Join Hands to Make Premium Car Tyres in India — 8 Lakh Units a Year by 2030

Premium Tyres, Made in India

Italian tyre maker Pirelli and India's Balkrishna Industries, better known as BKT, have signed a set of agreements to manufacture premium passenger car tyres in India. Under the first phase, BKT will produce up to 800,000 Pirelli-branded tyres a year by 2030 at its new passenger car radial plant in Bhuj, Gujarat, to Pirelli's own technical and quality standards.

Pirelli has sold tyres in India for years but has never made them here. The deal gives the Italian brand local manufacturing without building a factory itself, and gives BKT a premium customer as it expands beyond its traditional off-highway tyre business into cars, two-wheelers and commercial vehicles.

Three Agreements, Two Phases

The two companies signed a framework agreement, an offtake agreement and a service agreement on October 22. The offtake arrangement, which runs until December 31, 2031, includes minimum annual purchase commitments from Pirelli, matched by capacity commitments from BKT. The second phase envisages a 50:50 joint venture and a dedicated plant for high-value car tyres sold under both brands.

Item	Detail
Phase one	BKT makes up to 8 lakh Pirelli-branded tyres a year by 2030
Plant	BKT's passenger car radial plant, Bhuj, Gujarat
Phase two	50:50 joint venture with a dedicated high-value tyre plant
JV target	Incorporation by December 31, 2030
Board	Four members, two nominated by each partner
Service agreement	Pirelli provides testing and technical support for BKT tyres

Neither company has disclosed the joint venture's investment, location or eventual capacity, which leaves the second phase firmly in the planning stage.

Why India, and Why Now

The logic is in the numbers. Pirelli estimates that Indian car registrations will grow 5 to 7 percent every year between 2025 and 2030, and that the premium car tyre market will expand nearly five-fold over the same period. That is a market worth building a factory for.

"India is taking an ever more central role in the evolution of the global automotive industry," said Marco Tronchetti Provera, executive chairman of Pirelli. BKT joint managing director Rajiv Poddar said Pirelli's choice of BKT was a recognition of the manufacturing strength the Indian firm has built over decades. The move lands in a busy tyre market: JK Tyre has said it will raise prices by 4 to 5 percent in the December quarter, and CEAT has announced a 4 to 6 percent increase. See how ownership costs shift on our car value section.

What This Means for You

Tyres are a quiet, recurring cost that most buyers forget when they sign for a car. A premium tyre can cost two to three times a mass-market one, and until now almost all of it was imported. Local manufacturing should, over time, bring premium tyres closer to buyers' budgets and shorten supply chains, though that will not happen overnight and no one has promised lower prices. For an Indian car owner, the practical takeaway is simple: a wider choice of premium tyres, made closer to home, is good news for your next replacement set. Browse more industry stories in our news section.

(Sources: Pirelli and Balkrishna Industries joint press releases, 22 October 2026; Autocar India, 22 October 2026; ETAuto, 22 October 2026; The Hindu BusinessLine, 22 October 2026. Image credits: Hullian111, CC BY-SA 4.0, via Wikimedia Commons.)

::KEY_NUMBERS:: Pirelli-branded tyres by 2030 | 8 lakh JV stake | 50:50 India car registrations growth | 5-7% a year Premium tyre market | to grow nearly 5x ::TLDR:: BKT will make Pirelli-branded car tyres at its Bhuj plant in Gujarat A 50:50 joint venture and a dedicated plant are planned for phase two Pirelli currently has no manufacturing in India India's premium tyre market is projected to grow nearly five-fold ::TIMELINE:: 22 Oct 2026 | agreements signed By 2030 | up to 8 lakh Pirelli tyres made in India By 31 Dec 2030 | JV incorporation targeted 31 Dec 2031 | offtake agreement ends if JV is operational ::GLOSSARY:: PCR | passenger car radial, the standard construction for car tyres Off-take agreement | a deal where one firm agrees to buy a set volume of another's output BKT | Balkrishna Industries, an Indian maker best known for off-highway tyres ::PROS:: Local premium tyre manufacturing Technology transfer to an Indian maker New jobs and export potential ::CONS:: Plant location and investment not disclosed BKT is new to passenger car tyres Prices for buyers may not fall soon ::POLL:: Will made-in-India premium tyres cut your running costs? || Yes, over time || No, premium stays premium || Only for luxury cars ::SOURCES:: Pirelli and BKT press releases; Autocar India; ETAuto; The Hindu BusinessLine