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Public Capex Push In Budget To Boost Tyre Industry: ATMA

2026-02-04

The Indian tyre industry is expected to benefit from the government’s renewed emphasis on infrastructure development outlined in the Union Budget 2026–27, according to the Automotive Tyre Manufacturers Association (ATMA).

ATMA said the tyre sector is closely linked to the performance of the transport and infrastructure ecosystem, and the sharp rise in public capital expenditure to Rs 1.2 trillion is a significant positive for sustained long-term demand growth.

The association noted that the enhanced capex allocation reflects the government’s continued focus on building future-ready infrastructure across the country. Investments in roads, rail connectivity, urban mobility systems and logistics corridors are expected to act as key demand drivers for tyres across all vehicle segments.

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