The domestic tyre industry is likely to register a 7-8 per cent growth in the current fiscal on the back of replacement demand, according to people tracking the sector. JK Tyre & Industries MD Anshuman Singhania said the Indian tyre industry remains an export-heavy manufacturing sector, with outbound shipments surpassing Rs. 25,000 crore in FY25. "In FY26, the Indian tyre industry is expected to achieve 7-8 per cent growth on the back of the strong domestic replacement demand despite muted OE (original equipment) offtakes", Singhania said in an analyst call. The growth is attributed to consistent investments in capacity expansion, improvements in manufacturing efficiency and increased focus on enhancing the R&D capabilities, he noted. "With the upcoming festive season, coupled with the benefits of the recent repo rate cuts and favorable monsoon conditions, we expect the consumer sentiments to improve further", Singhania said.

Icra Senior Vice President & Co-Group Head (Corporate Ratings) Srikumar Krishnamurthy said domestic tyre demand from Original Equipment Manufacturers (OEMs) in commercial and passenger vehicle segments is likely to lag the growth in two-wheelers. "Replacement demand, which represents the largest pie of the tyre industry, is expected to be supported by factors like favorable rural sentiments, festive demand, and expected rate cut effect on consumption, even as urban demand is soft", he added. However, exports are likely to face headwinds from ongoing geopolitical developments and uncertainties around US tariffs, he stated.