Pirelli enters the Indian market: Strategic agreement with BKT

Pirelli enters the Indian market. The Italian tyre group, which until now has only had a commercial presence in the country, announced yesterday a strategic partnership with Balkrishna Industries Ltd. (BKT), one of the leading local manufacturers of off-highway tyres. The agreement provides for the production of up to 800,000 Pirelli-branded car tyres by 2030, to be manufactured at a newly built BKT plant equipped with sophisticated technologies that meet the Bicocca-based group’s quality standards.

The agreement with BKT. The agreement, which has just been signed, represents a significant step for Pirelli and is aimed at strengthening the Group’s position in a country such as India, which is characterised by high growth potential: the Indian car market is one of the most dynamic in the world, with registrations expected to rise by 5–7 per cent annually between 2025 and 2030 – a figure that stands in contrast to the significant decline in car sales globally. Furthermore, the market for high-end cars is also growing in India, thereby expanding the market for premium tyres, which is at the heart of Pirelli’s business. “India is playing an increasingly central role in the evolution of the global automotive industry, thanks to market growth, the development of mobility and the progressive strengthening of the country’s industrial and technological capabilities,” emphasised Marco Tronchetti Provera, Executive Chairman of Pirelli. “The agreement with BKT, a leading industrial partner with strong roots in India and a significant international presence, represents a strategic move for Pirelli that will enable us to strengthen our position in one of the markets with the greatest growth prospects and to support its evolution by leveraging our expertise, innovation and positioning in the highest-value segments.”

The joint venture. Specifically, the agreement – which combines Pirelli’s technological leadership in the high-end market with BKT’s industrial positioning and strong local presence – will be implemented in two stages. In the first phase, BKT will produce, at its own newly built plant equipped with the most advanced technologies, up to 800,000 Pirelli-branded tyres by 2030, in accordance with Pirelli’s specific technological and quality standards. Subsequently, subject to certain conditions being met, the plan is to establish a 50-50 joint venture and build a production plant dedicated to high-value car tyres, bearing both the Pirelli and BKT brands, for the Indian market and other international markets. “We are convinced that the collaboration between BKT, with its industrial excellence and market knowledge, and Pirelli, with its innovative technologies and high-end positioning, will not only open up new opportunities for both groups but will also help meet the growing demand for premium products in the Indian tyre market. The outlook for the domestic automotive market, and in particular for the partnership’s premium products, is very promising. Now is the right time to seize this opportunity,” said Andrea Casaluci, CEO of Pirelli. For BKT, the agreement supports the company’s expansion in the passenger car tyre segment: “This partnership brings together complementary expertise to capitalise on the opportunities offered by a growing market, whilst creating value for both companies,” said Arvind Poddar, Chairman and Managing Director of Balkrishna Industries Ltd.

Founded in 1987, Balkrishna Industries Ltd. (BKT) is an Indian multinational and one of the leading manufacturers of off-highway tyres, based in Mumbai. With a portfolio of over 3,600 specialised products for agricultural, industrial, construction, mining, earthmoving and materials handling applications, the company serves customers in more than 160 countries.