The ongoing investment cycle, which started about four years ago, is expected to end next quarter.
“Over the next five to six years, we are now planning another investment of Rs 5,000 crore to enhance our capabilities, both in car and truck tyres,” Singhania told PTI in an interaction.As part of this venture, the company also plans to create a number of production lines dedicated to exports, he added.
“We see that India could have good opportunities in the global markets in the future, we want to capitalize on this opportunity,” Singhania said. Currently, JK Tire earns about 14 percent of its total revenue from exports. The company exports tires to approximately 110 markets worldwide.
With high tariffs in the US impacting business, JK Tire is focusing on adding new export markets, Singhania said.
“Exports from India are obviously going to be restricted (to the US) because with the 50 per cent tariffs and so on, I hope and wish that some kind of bilateral trade deal (with the US) will lead to successful results, so that will help, but this is still a question mark,” he said.
If there is an agreement, it would be better, but if it takes time and for that interim period, the company has revised its export strategy.
“We have shifted our exports from India to other markets… there is demand and we are shifting shipments to other countries. We are also shifting a lot of exports to the US from our factory in Mexico,” Singhania said.
“But in the long run, if this (high tariff situation in the US) continues, Indian tire exports to the US will definitely be hampered,” he added.
Based on estimates of growth in the domestic market with an adjustment in the GST rate, Singhania said he expects the sector to grow 5 to 7 percent this year, with JK Tire expected to perform slightly better.
“In the long run, the GST 2.0 will also help in generating demand even in the rural sector due to the affordability factor,” he noted.
Singhania stated that the revival of small cars would also bring growth to the domestic tire industry, with overall volumes increasing.
Commenting on the introduction of built-in smart tires for passenger cars, he noted that the series features advanced sensors in the tire structure.
The technology is designed and developed in-house and manufactured at the company’s Banmore facility in Madhya Pradesh. The technology continuously monitors critical parameters in tires, including air pressure, temperature and potential air leaks, providing real-time actionable insights that significantly improve vehicle safety, performance and efficiency.
“By integrating intelligence at the core of performance, we are transforming the way India drives, making mobility smarter, safer and more sustainable,” said Singhania.
The built-in smart tires will be available on the aftermarket through the company’s dealers, initially in sizes ranging from 14 inches to 17 inches.
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