In brief
Under the first phase, an off-take agreement, BKT will produce up to 800,000 Pirelli-branded premium car tyres by 2030 at a new plant using the most advanced technologies.
A second phase would create an equal joint venture and a High Value car tyre plant under the Pirelli and BKT brands, but only if certain conditions are met.
Car registrations in India are estimated to rise 5-7% a year over 2025-2030, and the premium car tyre market is expected to grow almost fivefold.
The agreement
Pirelli is strengthening its presence in India, where until now it had been active only on the commercial side. The deal with Balkrishna Industries (BKT), a company of the Poddar family, has two phases. The first is an off-take agreement under which BKT will produce up to 800,000 Pirelli-branded premium car tyres by 2030 in a new plant equipped with the most advanced technologies, meeting Pirelli's technical and quality standards.
Second phase and market outlook
A second phase, triggered only if certain conditions are met, provides for an equal joint venture and a plant dedicated to High Value car tyres carrying both the Pirelli and BKT brands. These tyres are intended for the Indian market and other international markets. The companies cite estimated annual growth of 5-7% in India's car registrations over 2025-2030, and a premium car tyre market expected to grow almost fivefold. Pirelli says it aims to strengthen its position in a country with high potential and rising demand for High Value tyres, a segment on which it is focused.
Company statements
Pirelli's executive chairman, Marco Tronchetti Provera, described BKT as an industrial partner with deep roots in India and a significant international presence.
“This is a strategic choice that will allow us to strengthen our position in one of the markets with the greatest growth prospects.”
Pirelli CEO Andrea Casaluci said the prospects for India's automotive market, and particularly for the premium products covered by the partnership, look very promising.
“It is the right moment to seize this opportunity.”
Arvind Poddar, president and managing director of Balkrishna Industries and son of its founder Mahabirprasad, said the partnership combines complementary skills.
“This partnership brings together complementary skills to seize the opportunities offered by a growing market, while creating value for both companies.”
About BKT
Balkrishna Industries was founded in 1987 and is one of the main producers of off-highway tyres. Its portfolio includes more than 3,600 specialised products for agricultural, industrial, construction, mining, earthmoving and material handling applications, and it serves customers in more than 160 countries. The company also makes rubber tracks for the agricultural and industrial sectors. BKT has announced its entry into the two-wheeler, passenger car and commercial vehicle segments for the Indian market. Its vertically integrated production is supported by in-house carbon black output and research and development centres focused on product innovation and application-specific design.