Pirelli and BKT are strengthening their presence in the Indian tyre market through a strategic agreement that will see up to 800,000 premium car tyres produced in India under the Pirelli brand by 2030. The partnership brings together Pirelli’s expertise in high-value tyres and advanced technologies with BKT’s manufacturing capabilities, local presence and long-standing industrial experience in India.
An agreement that initially will be implemented through an off-take arrangement, under which BKT will produce up to 800,000 Pirelli-branded tyres by 2030 at one of its newly built plants in India. The facility will be equipped with advanced technologies and will manufacture the tyres according to Pirelli’s specific technological and quality standards.
A second phase of the agreement could lead to the creation of a 50-50 joint venture between Pirelli and BKT, subject to certain conditions. The planned JV would involve the construction of a dedicated plant for High Value car tyres, producing both Pirelli- and BKT-branded products for the Indian market and potentially for international markets.
Pirelli strengthens its position in India
For Pirelli, the agreement represents an important step in strengthening its position in India, where the company currently has a primarily commercial presence. The partnership with BKT would give the Italian tyre manufacturer access to an established local industrial platform in a market considered increasingly strategic for the global automotive industry.
According to the companies, car registrations in India are expected to grow by 5-7% annually between 2025 and 2030, while the premium car tyre market is expected to expand significantly over the same period.
This growth is particularly relevant for Pirelli, whose strategy is focused on the High Value tyre segment, where technological content, larger tyre sizes and premium positioning are increasingly important.
The agreement also reflects a broader trend among global tyre manufacturers towards strengthening local production in high-growth markets. Producing closer to customers can help manufacturers respond more effectively to local demand while reducing reliance on imports and creating a stronger industrial presence.
BKT expands beyond the off-highway market
For BKT, the partnership represents another important step in the company’s expansion beyond its traditional off-highway tyre business.
Bkt has been progressively broadening its product portfolio towards passenger car radial and commercial vehicle radial tyres. The agreement with Pirelli could accelerate this strategy. By combining BKT’s manufacturing scale and knowledge of the Indian market with Pirelli’s technological expertise and premium positioning.
The potential benefits therefore go beyond the initial production of Pirelli-branded tyres. If the second phase is implemented, the proposed joint venture could provide BKT with a dedicated industrial platform for High Value car tyres. While also allowing the company to strengthen its presence in both the domestic and international markets.
A strategic partnership for both companies
More than a simple manufacturing agreement, the Pirelli-BKT partnership can be seen as a strategic operation in which the two companies bring together complementary expertise and leverage their respective strengths.
Pirelli brings its technological know-how, premium brand positioning and experience in the High Value segment. BKT contributes its manufacturing capabilities, established industrial infrastructure and deep knowledge of the Indian market.
The possible 50-50 joint venture could therefore become the most significant element of the agreement. If implemented, it would create a production platform dedicated to High Value car tyres, combining Pirelli’s premium positioning with BKT’s industrial capabilities and local presence.
The timing is also significant. India is becoming an increasingly important automotive manufacturing hub, supported by growing domestic demand and the expansion of its industrial and technological capabilities. At the same time, the Indian tyre market is undergoing a process of premiumisation, with growing demand for larger and more technologically advanced tyres.
Pirelli and BKT, Agreement to Produce in India
Editorial Team
