BKT and Pirelli sign deal to produce premium car tyres in India, plan 50-50 JV

Balkrishna Industries (BKT) and Italy’s Pirelli have signed agreements to start making Pirelli‑branded passenger‑car tyres in India, with a 50‑50 joint venture planned for a later phase. The first phase lets BKT produce up to 800,000 Pirelli passenger‑car radial tyres by 2030, meeting Pirelli’s technical and quality standards and supplying them to the brand for sale in India and abroad. The arrangement runs until 31 December 2031 unless the joint venture is set up earlier, and includes minimum annual purchase commitments from Pirelli matched by BKT’s production capacity. Both firms aim to incorporate the joint venture by 31 December 2030, pending required conditions, and the new company would have a four‑member board with two directors from each side. In a separate technical‑services deal, Pirelli will aid BKT’s development of passenger‑car, SUV and two‑wheeler tyres, giving access to overseas testing sites, proving grounds and simulation tools. The partners are betting on a surge in India’s premium tyre market, forecasting a 5‑7 % yearly rise in car registrations through 2030 and an almost five‑fold increase in demand for premium car tyres.

Context

India’s growing middle class is driving higher sales of premium vehicles, which in turn boosts demand for high‑performance tyres; the BKT‑Pirelli tie‑up aims to meet this demand by combining local manufacturing capacity with global tyre expertise.