Scoping Study on India’s Tyre Industry: Potential, Challenges & Recommendations

India’s road transport system is expanding rapidly, driven by sustained economic growth, urbanization, nationwide expressway development, rising freight movement, and increasing vehicle ownership. Heavy-duty vehicles (HDVs)—specifically trucks and buses—consume nearly 70 per cent of India’s diesel and represent a major source of transport emissions (TERI, 2022). As India works to decouple economic growth from environmental degradation, advanced tyre technologies have emerged as a critical yet underutilized lever to improve fuel efficiency, enhance road safety, and curb emissions.

Nationally, the transport sector contributes approximately 15 per cent of total CO₂ emissions, with road transport accounting for 92 per cent of that share. Heavy-duty freight trucks make up only 3 per cent of the vehicle fleet, yet generate over half of particulate matter (PM) emissions. With domestic freight demand projected to quadruple by 2050, decarbonizing this sector is essential for meeting national climate commitments (NITI Aayog, 2022).

Concurrently, the global tyre industry is modernizing through radial construction, tubeless architectures, advanced silica compounds, and low rolling resistance (LRR) designs. As one of the world's leading tyre manufacturing hubs, India is witnessing a parallel shift: radialization is accelerating, backed by supportive policy frameworks including AIS-142 standards, BEE star labelling, HDV fuel-efficiency norms, and the PM E-DRIVE scheme. Furthermore, India’s expanding network of Free Trade Agreements (FTAs) presents a clear strategic opportunity to integrate domestic manufacturing deeper into global supply chains.

To evaluate these dynamics, TERI assessed the heavy-duty tyre market and its direct impact on freight emissions. TERI's cost-benefit analysis confirms that LRR tyres substantially lower annual operating expenditures, with top-tier designs offering the highest net fuel savings and superior lifecycle economics. Sector consultations mirror this trend, showing that commercial fleet operators increasingly weigh lifetime fuel efficiency and tread durability over initial purchase price.

Against the backdrop of national net-zero targets, dedicated freight corridors, accelerated fleet electrification, and upcoming BS-VII standards, deploying advanced tyre technologies offers immediate economic and climate returns. Maximizing these gains will require harmonizing star-labelling systems, expanding certified testing infrastructure, incentivizing LRR adoption, and aligning domestic regulatory standards with international best practices.