Pirelli and Balkrishna Industries Sign Strategic Deal to Produce Premium Tyres in India by 2030

POLICY WIRE — Milan and Mumbai — Italian tyre manufacturer Pirelli and Indian counterpart Balkrishna Industries, commonly known as BKT, announced a strategic partnership on Thursday to manufacture up to 800,000 Pirelli-branded premium car tyres in India by 2030.

The collaboration marks Pirelli’s initial local manufacturing foothold in India, where the company previously maintained strictly commercial operations. Driven by the Poddar family, the agreement positions both firms to capitalize on India’s rapidly expanding car tyre market, which industry projections estimate will grow nearly fivefold by the end of the decade.

Structured in multiple stages, the arrangement begins with an interim offtake contract utilizing existing capacity at BKT’s Bhuj plant backed by fixed pricing mechanisms. The initial phase will see BKT produce the branded tyres in a modern facility outfitted with advanced manufacturing technologies.

Looking ahead, the partnership establishes a framework for a future 50:50 joint venture dedicated to operating a brand-new production plant in India. Rajiv Poddar noted that BKT’s industrial capabilities, quality standards and long-standing expertise provide a strong foundation for partnerships of this scale.

Following the announcement, shares of Balkrishna Industries climbed 4 percent on the stock market, reaching their highest trading value for October. The alliance bridges European design with robust Indian production infrastructure to target one of the most dynamic regional automotive markets worldwide.

Reporting by Policy-Wire (PW)