Milan/Mumbai: Italian tyre manufacturer Pirelli and India’s Balkrishna Industries Ltd. (BKT) have signed a strategic agreement to manufacture up to 800,000 Pirelli-branded premium passenger car tyres in India by 2030. The partnership also lays the groundwork for a potential 50:50 joint venture and a dedicated manufacturing facility, marking a significant step in Pirelli’s expansion into one of the world’s fastest-growing automotive markets.
The agreement brings together Pirelli’s expertise in high-performance tyre technology and BKT’s established manufacturing capabilities in India. It will initially focus on local production of Pirelli-branded tyres, with both companies exploring a broader industrial partnership to serve domestic and international markets.
BKT to Manufacture Pirelli Tyres at New Indian Facility
Under the first phase of the agreement, BKT will manufacture up to 800,000 Pirelli-branded tyres by 2030 through an off-take arrangement. Production will take place at one of BKT’s newly constructed manufacturing plants, equipped with advanced production technology.
The tyres will be manufactured according to Pirelli’s specified technological requirements and quality standards, allowing the Italian company to strengthen its presence in India without immediately establishing a wholly owned manufacturing operation.
The arrangement represents an important shift for Pirelli, which currently maintains only a commercial presence in the Indian market. Local manufacturing could help the company respond more effectively to rising demand for premium passenger car tyres.
For BKT, traditionally associated with its industrial manufacturing expertise, the agreement provides an opportunity to expand its presence in the passenger car tyre segment while benefiting from Pirelli’s technological capabilities and international brand recognition.
50:50 Joint Venture Could Bring Dedicated Premium Tyre Plant
Beyond the initial manufacturing arrangement, Pirelli and BKT intend to explore the creation of an equally owned joint venture.
Subject to certain conditions, the proposed venture would establish a dedicated production facility for High Value passenger car tyres under both the Pirelli and BKT brands.
The planned facility would cater not only to India’s automotive market but also to international customers, potentially giving both companies additional opportunities in the premium tyre segment.
However, the joint venture and new plant remain proposals under the second phase of the agreement. The companies have not disclosed the proposed investment amount, factory location, production capacity or construction timeline.
India’s Growing Automotive Market Drives Partnership
The agreement comes as India continues to attract international automotive manufacturers and component suppliers seeking to capitalise on expanding vehicle ownership and demand for higher-value products.
According to projections cited by the companies, passenger car registrations in India are expected to increase by approximately 5–7% annually between 2025 and 2030. The premium passenger car tyre market is also projected to expand almost fivefold.
Such growth could create substantial opportunities for tyre manufacturers as demand increases for products designed to meet the performance, efficiency and comfort requirements of modern vehicles.
For Pirelli, whose business is concentrated on premium and high-value tyres, India represents an opportunity to expand its presence in a market where demand for such products is expected to increase.
BKT, meanwhile, stands to benefit from access to premium passenger car tyre technology as it diversifies its business.
Pirelli and BKT Leadership Outline Strategic Ambitions
Marco Tronchetti Provera, Executive Chairman of Pirelli, highlighted India’s growing importance to the global automotive industry.
“India is taking an ever more central role in the evolution of the global automotive industry, thanks to the market’s growth, development of mobility and progressive strengthening of the Country’s industrial and technological competencies. The agreement with BKT, a first-class industrial partner with solid roots in India and a significant international presence, represents for Pirelli a strategic choice which will allow us to strengthen our position in a market among those with the greatest growth potential and to accompany its evolution, drawing on our competencies, innovation and positioning in the segments with the greatest value”.
Arvind Poddar, Chairman and Managing Director of Balkrishna Industries Ltd. (BKT), said: “This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies”.
Andrea Casaluci, CEO of Pirelli, expressed confidence that combining the companies’ respective capabilities would open new business opportunities and support the growing preference for premium tyres in India.
“We are confident that the collaboration between BKT, with its industrial excellence and knowledge of the market, and Pirelli, bringing innovative technologies and high-end positioning, will not only open new opportunities for both groups but will also contribute to the growing premiumization of the Indian tyre market. The outlook for the national automotive market, and especially for the partnership’s premium products is very promising. And the time is right to catch that wave”.
Rajiv Poddar, Joint Managing Director of BKT, described the agreement as recognition of the Indian manufacturer’s established production capabilities.
“When a globally established brand such as Pirelli chooses BKT, it is a recognition of the manufacturing strength, quality and expertise we have built over decades. We are proud to bring our industrial scale to this partnership and to serve customers not only in India but also across our international markets. Pirelli’s technological leadership and BKT’s industrial capabilities provide together a strong foundation for lasting values.”
A New Chapter for Premium Tyre Manufacturing in India
The Pirelli-BKT agreement reflects the increasing importance of India as both an automotive consumer market and a manufacturing destination for international companies.
For Pirelli, the partnership offers a route towards establishing a local production footprint in a market where it currently operates commercially. For BKT, it provides an opportunity to enter a new product category and strengthen its position in the broader automotive supply chain.
Much will depend on how quickly the initial manufacturing arrangement progresses and whether the proposed joint venture moves from planning to production.
Nevertheless, the partnership highlights a broader transition in India’s automotive industry, where growing demand for premium vehicles and components is encouraging manufacturers to invest in more sophisticated domestic production. As the market develops, India could increasingly become not just a destination for premium automotive products, but a manufacturing base supplying them to the rest of the world.
