Best Tyre Stocks In India

(The stocks mentioned in the blog are as per Market Capitalisation)

In India, the automotive sector has experienced remarkable growth in recent years, driving a surge in demand for high-quality tyres. As a result, the Indian market now consists of numerous tyre companies, each offering a wide range of products to cater to diverse consumer needs.

With the rapid expansion of the Indian automotive industry, the nation is set to become the world's third-largest market in the next 5 to 6 years.

Tyre Industry in India - A Brief Overview

India is one of the leading tyre manufacturers in the world. It offers a range of products, including conventional radial and bias tyres, as well as advanced variants such as smart, puncture-proof, noise-reduction, and electric-vehicle tyres.

The industry is also expanding its footprint in premium and luxury tyre segments, previously dominated by imports. Furthermore, with the adoption of new technologies such as artificial intelligence and machine learning and compliance with technical and safety regulations, the tyre industry in India is improving its operations and becoming more efficient.

This growth is primarily driven by the development of the Indian automotive industry and by government initiatives, including subsidies to promote the use of electric vehicles. Additionally, increasing consumer health consciousness is driving demand for bicycles, creating further opportunities for the tyre market.

A 7-8% growth in revenues is projected for 2025-26, mainly driven by strong replacement demand, recent GST cuts, more stable profitability levels, and other factors. Exports crossed ₹25,000 crore in FY2025 (an increase of about 9%), with leading companies like Apollo, MRF, and CEAT dominating the market. Domestic demand is also expected to account for about 75% of the total volumes, while profitability is anticipated to stay at 13-13.5%.

The top six manufacturers in the country account for approximately 85% of the market, valued at about ₹1,000 billion (US$11.61 billion). The industry is anticipated to reach US$21.27 billion by 2030, with exports forecast to double to ₹50,000 crore by then. 

Best Tyre Stocks in India in 2026 as per Market Capitalisation

The table below mentions the top tyre stocks in India for 2026, sorted as per market capitalisation:

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Tyre Stocks in India as per Market Capitalisation

Here is a comprehensive overview of the top tyre stocks as per market capitalisation:

1) MRF Ltd.

Headquartered in Chennai, MRF Limited is a rubber tyre manufacturing company. The company’s product segment is divided into tyres, sports goods, Funskool, paints & coats and pretreads.

In the tyre segment, MRF offers tyres for a wide range of applications, including heavy-duty trucks and buses, light trucks, multi-utility vehicles (MUVs), recreational vehicles (RCVs), and passenger cars. Additionally, it provides tyres for motorsports, agricultural or farm use, military applications, forklifts, two-wheelers, three-wheelers and off-road vehicles or earthmovers. 

The company provides tyres for various models from renowned vehicle brands, including Toyota, Volvo, Nissan, Ford, Audi, Hyundai, BMW, Volkswagen, Mahindra, Maruti, and more. Moreover, MRF Limited provides services such as tyre changing, tyre repair, tyre maintenance, wheel balancing, robotic wheel alignment, nitrogen filling, and automatic car wash. 

2) Balkrishna Industries Ltd.

For more than 30 years, Balkrishna Industries Limited (BKT) has been a leader in designing and manufacturing safe, innovative and high-performing tyres for various industries, including construction, agriculture, mining, earthmoving and ports.

The company also manufactures tubes and carbon black. Its main products include Off-the-Road tyres, agricultural tyres and industrial tyres. The company's agricultural tyres are used for various applications, including tractors, harvesters, agro trucks, telehandlers and others. Its industrial tyres serve applications such as forklifts, excavators, container handlers, compactors and mobile cranes. 

Additionally, BKT’s off-the-road tyres are used on rigid dump trucks, articulated dump trucks, scrapers, underground mining vehicles, and other applications. Moreover, BKT serves both original equipment manufacturers (OEMs) and the replacement market.

With 5 manufacturing plants located in Maharashtra, Rajasthan, and Gujarat, BKT distributes its products through third-party distributors and exports them worldwide. BKT also has distribution partners in over 160 countries across 5 continents, allowing it to serve a truly global customer base.

3) Apollo Tyres Ltd.

Incorporated in 1972, Apollo Tyres Limited is a global tyre manufacturer and the leading brand in India. Apollo markets its products under 2 global brands - Apollo and Vredestein.  It offers tyres for passenger vehicles, commercial vehicles, bicycles, off-the-road vehicles, farms, and industrial applications. The Vredestein brand provides agricultural tyres,  industrial tyres, car tyres and bicycle tyres. 

It provides tyres for various companies, including Maruti Suzuki, Hyundai, Toyota, Honda, Tata Motors, Bajaj, and TVS. Some of its popular patterns are Apterra AT2, Aspire 4G, Amazer 4G, Alnac 4G, Altrust, Amazer XP, and Apterra HT2.

Apollo Tyres’ products are accessible in more than 100 countries through an extensive network of branded, exclusive and multi-product outlets. The company operates 7 manufacturing units, with 5 in India and one each in the Netherlands and Hungary. 

4) CEAT Ltd

Established in 1958, CEAT is one of India's top tyre brands, under the RPG GROUP's flagship. It provides a wide range of tyres, tubes, and flaps for a wide range of vehicles, including cars, scooters, bikes, passenger vehicles (PV), light commercial vehicles (LCVs), buses, trucks, tractors, two-wheelers and three-wheelers.

The company caters to popular models such as Maruti Alto, Wagon R, Honda Shine, Swift, Dzire, Hero Splendor, Passion, Activa, Suzuki Access, TVS Jupiter and others. 

Through its e-commerce website, customers can choose doorstep tyre delivery, home fitment, or pickup from an authorised store. CEAT operates factories in Nashik, Mumbai, Halol, and Ambernath, as well as in other cities across India. Furthermore, it exports its products to the US, Bangladesh, Sri Lanka and the Netherlands.

5) JK Tyre & Industries Ltd

JK Tyre & Industries Limited, an Indian tyre manufacturer, offers comprehensive solutions for various vehicle segments. The company provides passenger car tyres, commercial tyres, farm tyres, two-wheeler tyres, three-wheeler tyres and off-the-road tyres.

It also provides puncture guards to prevent punctures. JK Tyre introduced India's first-ever 'Smart Tyre' technology, featuring Tyre Pressure Monitoring Systems (TPMS) with TREEL Sensors that monitor critical tyre parameters, including pressure and temperature. 

The company and its subsidiaries develop, manufacture, market, and distribute automotive tyres, tubes, flaps, and retreads. JK Tyre primarily operates in multiple segments, including India and Mexico, with a notable presence in 105 countries through over 230 global distributors.

With a network of over 6,000 dealers and more than 750 brand shops under the names Xpress Wheels, Truck Wheels, and Steel Wheels, JK Tyre operates approximately 11 manufacturing facilities, 9 in India and 2 in Mexico.

Factors to Consider Before Investing in Tyre Stocks in India

Here are some crucial factors you must consider before you buy tyre stocks:

• Raw Materials

You must keep an eye on crude oil and natural rubber prices, as they directly affect tyre companies' gross margins in India. The decline in these prices affects tyre stock profitability by influencing total production costs.

• Lifespan of Tyres

Technological advancements that have led to longer-lasting tyres mean consumers are now seeking higher-quality products. Investors should evaluate how tyre companies are adapting to this demand for durability and whether they are investing in research and development to remain competitive.

• Government Policies and Trade Dynamics

Note how government policies on imports and exports affect the tyre manufacturing industry. Regulations on trade agreements and tariffs directly influence the cost of raw materials and the competitiveness of Indian tyre manufacturers globally.

• Expansion of Tyre Buying and Selling Business

The growth of e-commerce in the tyre market has intensified competition and driven down prices, benefiting consumers. You should consider how tyre companies are adapting to this shift to capture market share in the online space.

• Supply Chain Resilience

You must evaluate how well tyre companies manage their supply chains. A robust supply chain ensures a continuous flow of materials and products, even in the face of disruptions. Companies with resilient supply chains are often better positioned to adapt to changing market conditions, potentially leading to improved stock performance over time.

• Company’s Financial Performance

Go through the past financial reports of tyre companies to understand their revenue growth, market share, debt-to-equity ratio, cash flow statements, net income and profitability. Analysing these factors will provide valuable insights into the company's financial health and stability.

Should You Invest in Tyre Stocks?

While the tyre sector has shown resilience and growth, it is important to understand its significant challenges and risks. Fluctuations in raw material prices pose a constant risk to tyre manufacturers, impacting their production costs and profit margins. Additionally, high competition from other tyres presents a challenge, influencing market dynamics and affecting the performance of tyre stocks. 

Moreover, changes in consumer preferences for tyre brands and product specifications can further affect tyre companies' market positions.

Evaluating these factors, along with economic trends in vehicle sales, is crucial to making informed investment decisions in tyre stocks. In addition, careful consideration of your risk appetite and your financial goals is essential when selecting the top tyre sector stocks in India for your investment portfolio.

The Bottom Line 

Investing in the best tyre stocks in India can be profitable if approached carefully. Numerous companies boast strong market positions; however, it is crucial to conduct thorough research and seek expert advice before investing in any tyre company.