In 2023, the India Off-the-Road Tyre (OTR) Market Report by IMARC captured the growing OTR/construction tyre industry as the market size reached 11.3 million units. Just as two or more wheels move the automotive sector, the use of OTRs tyres, utilised for large-scale machinery at construction, mining and other sites with no roads, is growing owing to increasing infrastructural, construction, mining, agriculture and forestry activities.

India’s off-highway tyre market is designed for heavy equipment used in the construction industry and able to withstand harsh conditions such as rough terrain, heavy loads and abrasive materials. OTR tyres are commonly used in vehicles and machinery such as excavators, loaders, dump trucks and bulldozers and come in various sizes and configurations to accommodate specific applied machinery. Major usage is seen in skid-steer, backhoe and compact loaders, graders, compactors and trenchers. This equipment largely deals with digging, loading, excavation, lifting, road construction and paving.

Know your tyre!
The two different types of OTR tyres are bias ply and radial ply. The main difference between the two lies in the belt construction. Additionally, the chord materials vary, which affects functional performance. Bias-ply tyres have a ply arrangement such that cords are spread diagonally across the surface and plies are stacked crosswise over the direction of the cords. Compared to radial tyres, these tyres’ design makes them more stable at heavier loads and offer a lower initial cost, which has historically led them to dominate the Indian market. However, their drawbacks include reduced control at higher speeds and increased rolling resistance.

The arrangement of radial ply tyres extends from the beads and across the tread so that the cords are laid at approximately right angles and parallel to each other, which allows for better heat dissipation and improves fuel efficiency, providing a smoother ride. They are commonly used in highway construction and long-haul applications because of their durability and overall performance. Increasing adoption of these tyres is also owing to their environmental sustainability and regulatory compliance.

The market
The Reliance Business Report highlighted the Asia-Pacific region as the market leader in OTR tyres. Within the region, the market is dominated by China, owing to the rise in construction activities and urbanisation initiatives, followed by India. Developments in the electrification of fleets and automation are providing a constant boost to the forecast for major economies.

In the Indian landscape, the market is highly competitive and dominated by MRF Ltd, Apollo Tyres, Bridgestone Company, CEAT Tyres, Goodyear Tyre & Rubber Company, TVS Eurogrip, and JK Tyre & Industries. In 2023, JK Tyres developed India’s largest OTR tyre, bagging a spot in the Limca Book of Records. “The mining and construction segment contributes to more than half of off-highway tyre sales in India; in addition, agriculture is another major segment for off-highway tires,” says Rajiv Podar, Managing Director, Balkrishna Industries. “So, the entire tyre industry is witnessing a spurt in domestic demand.” And according to Rajiv Budhraja, Director General, Automotive Tyre Manufacturers’ Association (ATMA), “The global anti-China sentiment and the ‘China Plus One’ factor have greatly helped Indian players.” Further, with passenger car radial (PCR) tyres providing better returns in the European and North American markets, Michelin and Pirelli are moving into the US and European regions. This has opened avenues for local innovation to be scaled for the domestic market and exports.

Despite robust growth, the Indian OTR tyre market faces challenges related to economic fluctuations, a need for continuous innovation, and unprecedented supply chain-related disruptions as raw materials account for nearly 70 per cent of the manufacturing cost of a tyre.

Poised for growth
That said, the Indian OTR tyre market is projected to grow at a CAGR of 8.4 per cent by 2028, according to a Blueweave Consulting report.

The industry is poised to grow by integrating emerging relevant technology such as smart tyres, with sensors and monitoring systems enabling real-time monitoring of tyre conditions, performance data collection and predictive maintenance; developing eco-friendly tyre solutions with a reduced carbon footprint; improving recyclability to address environmental concerns; and continuing optimisation of tyre construction while offering stability, traction and efficiency.

The continued push towards capital expenditure provided by the 2024 Budget and schemes like the National Infrastructure Pipeline (NIP) provide the OTR industry with a rich scope to exploit mining and construction opportunities.