Italian tyre manufacturer Pirelli and India’s Balkrishna Industries Limited (BKT) have entered into a strategic partnership to manufacture premium passenger car tyres in India, marking a significant step in Pirelli’s expansion in the country’s automotive market.
Under the first phase of the agreement, BKT will manufacture up to 8 lakh Pirelli-branded passenger car tyres annually by 2030 at its upcoming manufacturing facility in Bhuj, Gujarat. Production is expected to begin in the next financial year, with the tyres manufactured according to Pirelli’s technical specifications and quality standards.
Proposed 50:50 Joint Venture
The partnership also envisages a second phase involving a proposed 50:50 joint venture between Pirelli and BKT. Subject to the partners finalising their business plans and meeting the required conditions, the venture will establish a dedicated manufacturing plant for high-value passenger car tyres.
The proposed facility will manufacture tyres under both the Pirelli and BKT brands, serving customers in India and international markets. The companies have not yet announced the plant’s location, investment or production capacity.
Pirelli Gains Manufacturing Access to India
Pirelli, headquartered in Italy, currently has a commercial presence in India but does not operate a local tyre manufacturing facility. The partnership will allow the company to strengthen its position in one of the world’s major automotive markets by combining its premium tyre technology with BKT’s domestic manufacturing capabilities.
For BKT, the agreement supports its expansion beyond its traditional off-highway tyre business, which serves agriculture, mining, construction and industrial applications. The partnership also includes technical cooperation, with Pirelli supporting BKT’s development of passenger car, SUV and two-wheeler tyres.
India’s Premium Tyre Market Attracts Investment
The companies expect India’s car registrations to grow by 5–7% annually between 2025 and 2030. They also estimate that the premium passenger car tyre market could expand almost fivefold during the same period.
The partnership is designed to capitalise on rising demand for premium vehicles and high-performance tyres while creating opportunities for domestic production and exports.
By combining Pirelli’s technology with BKT’s manufacturing expertise, the agreement could strengthen India’s role in the global automotive supply chain and support the expansion of its premium tyre segment.
