The Bad PlaceTimes of India | Tyre makers step on the accelerator with ₹10K-cr capex in FY27
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India’s leading tyre manufacturers – MRF, Apollo Tyres, CEAT, JK Tyre & Industries and Balkrishna Industries – are gearing up for a massive expansion in FY 27, committing to a combined capital‑expenditure of more than ₹10,000 crore across passenger‑car, truck‑bus, two‑wheeler and off‑highway segments. Apollo Tyres leads with a ₹3,500‑crore plan (about 80 % earmarked for growth), allocating roughly ₹3,000 crore to expand truck and passenger‑radial capacities in India and the remainder for passenger‑car tyre production at its Hungarian plant. MRF will spend over ₹2,000 crore, CEAT is budgeting ₹1,350‑₹1,400 crore – a 25 % rise from FY 26 – while Balkrishna Industries has approved an extra ₹2,000 crore on top of its FY 26 outlay of ₹2,800 crore. JK Tyre intends to invest about ₹1,130 crore to boost truck‑bus, passenger‑car and all‑steel light‑truck radial capacities, operating at over 95 % utilisation in the TBR segment and 90 % overall. Despite robust demand driven by replacement growth, premiumisation and infrastructure‑linked mobility, the firms remain cautious of raw‑material, energy and logistics cost volatility stemming from the West‑Asia crisis, and are poised to pass on price hikes to safeguard margins.
Tyre makers step on the accelerator with ₹10K-cr capex in FY27
Chennai: Amid geopolitical uncertainties and raw material cost pressures, India’s leading tyre makers are pressing ahead with aggressive capacity expansion plans, banking on a healthy demand outlook driven by replacement segment, premiumisation and infrastructure-led mobility trends. Leading tyre manufacturers such as MRF, Apollo Tyres, Ceat, JK Tyre & Industries and Balkrishna Industries have lined up a combined capital expenditure of over Rs 10,000 crore for FY27.
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