Indian tyre maker Balkrishna Industries (BKT) and Italian tyre maker Pirelli have signed a series of agreements to manufacture Pirelli-branded passenger car tyres in India, with plans to establish a 50:50 joint venture in a second phase. While the companies have signed a framework agreement, an offtake agreement and a technical services agreement, a definitive joint venture (JV) agreement is yet to be signed.
The partnership will combine Pirelli’s expertise in high-calibre passenger car tyres with BKT’s manufacturing capabilities and industrial presence in India. While Pirelli has a commercial presence in India, it does not currently operate a local tyre manufacturing facility. BKT, meanwhile, is primarily known for its off-highway tyres – used in applications such as agriculture, mining, construction, and industrial – though it has been expanding into other segments, including passenger car tyres, commercial-vehicle radial tyres and two-wheeler tyres.
BKT-Pirelli tyre manufacturing partnership details
Under the initial phase of the partnership, BKT plans to manufacture up to 8,00,000 Pirelli-branded passenger car radial tyres in India by 2030. The tyres will be produced in line with Pirelli’s technical and quality standards and supplied to the Italian brand and its affiliates for sale in India and overseas markets.
The initial manufacturing arrangement will remain in place until December 31, 2031, unless the proposed JV can meet Pirelli’s requirements earlier. It also includes minimum annual purchase commitments from Pirelli, matched by corresponding production capacity commitments from BKT. Both companies are targeting the incorporation of the JV by December 31, 2030, subject to the fulfilment of applicable conditions.
New manufacturing facility planned for high-value passenger car tyres
In the second phase, the proposed JV will establish a dedicated manufacturing plant in India to produce high-value passenger car tyres under both the Pirelli and BKT brands, with the products catering to domestic and international markets. However, Pirelli and BKT have not disclosed the proposed plant’s location, investment, production capacity or detailed product portfolio. The JV is expected to have a four-member board, with each company nominating two directors.
Under a separate technical services arrangement, Pirelli will also support BKT’s development of passenger car, SUV and two-wheeler tyres sold under the Indian brand. This will include access to overseas testing facilities, proving grounds and simulation equipment.
Partnership targets India’s growing premium tyre market
For this partnership, Pirelli and BKT are banking on an expansion of demand for premium tyres in the Indian passenger vehicle market. The companies estimate that car registrations in India will grow 5-7 percent annually until 2030, while the premium car tyre market could grow almost fivefold over the same period.