A New Strategic Partnership for Pirelli and BKT in India

Pirelli and Balkrishna Industries Ltd. (BKT) have signed a strategic agreement aimed at capturing the opportunities offered by the Indian car tyre market, one of the most dynamic and enterprising on a global level.

India is today one of the most attractive automotive markets in the world, with car registrations estimated to increase by 5-7% annually from 2025 to 2030 and a premium car tyre market that will grow almost fivefold.

The partnership, which combines Pirelli’s high-end technological leadership with BKT’s local industrial positioning and strong presence, foresees a first phase based on an off-take agreement under which BKT will produce, in one of its newly constructed production plants equipped with the most advanced technology, up to 800,000 Pirelli-branded tyres by 2030 incorporating the brand’s specific technological and quality standards.

This agreement paves the way for a second phase which envisages, subject to certain conditions, the creation of a 50-50 joint venture and the construction of a production plant dedicated to High Value car tyres, both with the Pirelli brand and the BKT brand to serve India and other international markets.

For Pirelli, with only a commercial presence in India at present, the agreement constitutes a significant step towards reinforcing its positioning in a country characterised by great potential and growing demand for High Value tyres, the segment where Pirelli is focused.

For BKT, the agreement supports the company’s expansion into the passenger car tyre segment and is expected to create new opportunities in both domestic and international markets.

Marco Tronchetti Provera, Executive Chairman of Pirelli, says: “India is taking an ever more central role in the evolution of the global automotive industry, thanks to the market’s growth, development of mobility and progressive strengthening of the Country’s industrial and technological competencies.

“The agreement with BKT, a first-class industrial partner with solid roots in India and a significant international presence, represents for Pirelli a strategic choice which will allow us to strengthen our position in a market among those with the greatest growth potential and to accompany its evolution, drawing on our competencies, innovation and positioning in the segments with the greatest value.”

Arvind Poddar, Chairman and Managing Director of Balkrishna Industries Ltd (BKT), adds: “This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies.”