Italian tyre manufacturer Pirelli has entered into a strategic partnership with India’s Balkrishna Industries Ltd (BKT) to manufacture up to 8 lakh Pirelli-branded tyres annually by 2030 at BKT’s upcoming facility in Bhuj, Gujarat. Production is expected to commence in the next financial year, according to BKT Joint Managing Director Rajiv Poddar.
Under the first phase of the agreement, BKT will manufacture tyres to Pirelli’s specifications under a five-year off-take arrangement. Pirelli will market the products under its own brand, with production volumes expected to increase gradually to reach up to 8 lakh tyres annually in the fourth and fifth years.
The partnership also envisages a second phase involving a proposed 50:50 joint venture to manufacture premium passenger car tyres under both Pirelli and BKT brands. However, the investment requirement, plant location and detailed business plan for the proposed joint venture are yet to be finalised.
The proposed manufacturing operations will cater to both domestic and international markets. The partners have agreed on the broad terms of the joint venture, but further discussions on business plans and manufacturing locations will follow.
For Pirelli, which currently has a commercial presence in India, the partnership marks a strategic move to strengthen its position in the country’s premium tyre segment. BKT, traditionally a major manufacturer of off-highway tyres, is seeking to expand into the passenger car tyre market through the collaboration.
The companies expect to benefit from India’s expanding automotive market and rising demand for premium tyres. According to their announcement, car registrations in India are projected to grow by 5–7% annually between 2025 and 2030, while the premium car tyre segment is expected to expand nearly fivefold.
Under the proposed joint venture, Pirelli and BKT would maintain separate distribution networks while sourcing tyres from the manufacturing facility. The arrangement is expected to combine Pirelli’s expertise in premium passenger car tyres with BKT’s manufacturing capabilities, creating opportunities in India and overseas markets.
