Pirelli, BKT Sign Agreement Targeting India’s Car Tire Market
Pirelli and BKT signed a strategic agreement to pursue growth opportunities in India’s car tire market. The Pirelli and BKT agreement includes plans for tire production and a potential joint venture focused on high-value passenger car tires.
India’s automotive sector is projected to expand, with car registrations estimated to increase 5–7% annually from 2025 to 2030. The premium car tire segment is expected to grow nearly fivefold during the same period.
Tire Production Plans
The partnership begins with an off-take agreement under which BKT will produce up to 800,000 Pirelli-branded tires by 2030. Production will take place at one of BKT’s newly constructed plants in India.
BKT will manufacture the tires according to Pirelli’s specified technological and quality standards, it said. The companies said the facility is equipped with advanced technology.
A potential second phase, subject to conditions, would establish a 50-50 joint venture. The companies would also establish a dedicated production plant for high-value car tires under both the Pirelli and BKT brands. The plant would serve India and other international markets.
Agreement Supports Market Expansion
Pirelli currently has only a commercial presence in India. The agreement aims to strengthen its position in a market with growing demand for high-value tires.
For BKT, the partnership supports its entry into the passenger car tire segment, it said. The agreement is also expected to create opportunities in domestic and international markets.
Pirelli and BKT Executives Comment on Agreement
“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,” said Marco Tronchetti Provera, executive chairman of Pirelli. “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.”
“This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies,” said Arvind Poddar, chairman and managing director of BKT.
“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,” said Andrea Casaluci, CEO of Pirelli. “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.”
“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,” said Rajiv Poddar, joint managing director of BKT. “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.”