Pirelli and Balkrishna Industries Ltd (BKT) have entered into a strategic agreement to tap the growth potential of India’s passenger car tyre market, combining Pirelli’s premium tyre technology with BKT’s manufacturing capabilities and established industrial presence in the country.
Under the first phase, BKT will manufacture up to 800,000 Pirelli-branded tyres by 2030 at a newly constructed facility equipped with advanced technology. Production will follow Pirelli’s specified technological and quality standards. The agreement also envisages a second phase, subject to certain conditions, involving a proposed 50:50 joint venture and a dedicated plant to manufacture high-value passenger car tyres under both brands for Indian and international markets.
India’s car registrations are projected to grow by 5–7 per cent annually between 2025 and 2030, while the premium car tyre market is expected to expand almost fivefold. The partnership is intended to position both companies to benefit from this demand. For Pirelli, it marks a strategic step towards strengthening its presence beyond its existing commercial operations in India, while enabling BKT to enter the passenger car tyre segment and expand its market reach.
Marco Tronchetti Provera, Executive Chairman, Pirelli, said: “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, 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, Pirelli, added: “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, BKT, commented: “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.”