JK Tyre Announces ₹4,980 Crore Expansion Plan To Boost Radial Tyre Capacity By 24%

JK Tyre & Industries has approved a major ₹4,980 crore phased expansion plan to scale up production capacity for Truck & Bus Radial tyres and Passenger Car Radial tyres. The expansion will be completed by FY2030 and is aimed at supporting rising demand from commercial vehicles, passenger vehicles, SUVs and EV-focused applications.

The company’s current combined TBR and PCR tyre capacity stands at around 210 lakh tyres per annum, including capacities already under implementation. Capacity utilisation in these categories is already above 90%, which indicates that JK Tyre is operating close to peak levels and needs additional capacity to protect growth momentum.

Key Highlights

Particular	Details
Investment approved	₹4,980 crore
Capacity addition	24%
Focus segments	Truck & Bus Radial, Passenger Car Radial
Current capacity	210 lakh tyres per annum
Current utilisation	Over 90%
Timeline	By FY2029-30 / FY30
Plants	Chennai Tyre Plant and Vikrant Tyre Plant
Funding	Internal accruals and debt

Why This Expansion Matters

JK Tyre’s investment comes at a time when India’s tyre industry is seeing strong demand across replacement, OEM and export channels. The company is also trying to tap into the growth of SUVs, premium passenger vehicles and electric mobility. ETAuto reported that JK Tyre sees EV and SUV demand as a key opportunity, with the company already having a strong presence in electric bus tyres.

The ₹4,980 crore capex is also important because it comes alongside a strong Q4 FY26 performance. JK Tyre reported a sharp rise in quarterly profit, reporting an 83% YoY increase in consolidated net profit for Q4 FY26.

JK Tyre has approved a ₹4,980 crore phased expansion plan to increase TBR and PCR tyre capacity by 24% by FY2029-30.

Auto Punditz Take

This expansion signals that JK Tyre is preparing for a higher-growth phase in India’s auto and tyre market. With utilisation already above 90%, the company has limited headroom unless fresh capacity is added. The focus on TBR and PCR tyres is logical, as commercial vehicle demand, SUV growth, EV buses and passenger vehicle replacement cycles can support long-term volume growth.

However, the key monitorable will be execution. Since the investment will be funded through internal accruals and debt, JK Tyre will need to balance growth with leverage, raw material volatility and margin protection.