Pirelli and Balkrishna Industries Ltd. (BKT) have signed a strategic agreement to manufacture premium car tyres in India, with plans to produce up to 800,000 Pirelli-branded tyres by 2030.
Under the first phase of the agreement, BKT will manufacture the tyres at a newly constructed plant equipped with advanced technology, adhering to Pirelli's technological and quality standards. The partnership is aimed at capitalising on India's growing automotive market and rising demand for premium tyres.
The agreement also envisages a second phase, subject to certain conditions, involving the establishment of a 50:50 joint venture between the two companies. The proposed venture would set up a dedicated manufacturing facility for high-value car tyres under both Pirelli and BKT brands, catering to India and international markets.
Pirelli currently has a commercial presence in India, and the partnership marks a significant step towards strengthening its position in the country. For BKT, the agreement represents an opportunity to expand beyond its established tyre business into the passenger car tyre segment.
The companies expect India's car registrations to grow by 5-7 per cent annually between 2025 and 2030, while the premium car tyre market is projected to grow almost fivefold over the same period.
Pirelli Executive Chairman Marco Tronchetti Provera said India would play an increasingly important role in the global automotive industry's evolution, making the partnership a strategic move for the Italian tyre manufacturer. BKT Joint Managing Director Rajiv Poddar said the agreement recognised the company's manufacturing capabilities, quality standards and industrial expertise.
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