Pirelli to Source Up to 800,000 Car Tyres From BKT Plants in India

Pirelli plans to have up to 800,000 premium passenger car tyres produced in India by 2030 under a new manufacturing agreement with Balkrishna Industries (BKT), India's off-highway tyre specialist.

The deal starts as an off-take agreement (a contract in which one company commits to buying another's output) rather than a joint venture. BKT will manufacture the tyres at one of its newly built plants, working to technology and quality specifications set by Pirelli. The site will build both Pirelli- and BKT-branded tyres for sale in India and for export markets.

For Pirelli, the arrangement closes a gap. The Italian tyre maker runs commercial operations in India but has no local manufacturing, and the agreement is intended to strengthen its position in the country's high-value tyre segment.

What did the two companies say?

BKT chairman and managing director Arvind Poddar framed the deal as a fit between two different businesses. He said: "This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies."

Pirelli CEO Andrea Casaluci pointed to the industrial division of labour. He said: "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."

Could the deal become a joint venture?

The companies have left that door open. They may subsequently establish a 50:50 joint venture, subject to conditions that have not been disclosed, to develop a dedicated Indian facility for high-value passenger car tyres. No further details on those conditions, the timing, or the potential investment size have been released. Until a joint venture is confirmed, the 800,000-unit volume rests on the off-take structure alone — an announced intention rather than a committed plant programme.

Why is BKT entering car tyres now?

BKT has built its business on off-highway tyres for agricultural and industrial equipment. It has recently announced plans to enter India's two-wheeler, passenger car and commercial vehicle tyre markets, and the Pirelli contract supports that passenger car entry. BKT expects the partnership to open opportunities in both domestic and export sales.

What is driving the demand case?

Pirelli supplied the market mathematics behind the deal. Indian car registrations are estimated to grow by 5–7% annually between 2025 and 2030, the company said. Over the same period, the premium passenger car tyre market is projected to expand almost five times — roughly the difference between steady volume growth and a segment reshaping itself around higher-priced products.

The India deal follows another capacity commitment from Pirelli. Last month, the company's board approved a multi-year investment plan of about €1bn ($1.14bn) to expand its tyre manufacturing site in Rome, Georgia, in the US. Taken together, the two moves show Pirelli adding volume outside Europe through both owned capacity and contract manufacturing.

What to watch next

The first signal to track is production start-up at the designated BKT plant, which will show whether the off-take volumes are on schedule. The second is any announcement that the 50:50 joint venture conditions have been met, which would convert the arrangement into a dedicated facility with committed capital. The third is BKT's parallel entry into two-wheeler and commercial vehicle tyres, a test of whether an off-highway specialist can scale across the passenger market.