JK Tyre expansion plans totaling ₹6,110 crore will focus on higher-value tyres, sensor technology and electric mobility as the company tries to improve profitability amid rising raw-material costs. The programme includes ongoing capacity expansion and additional projects planned over the next three to four years.

Key Takeaways

  • JK Tyre aims to raise the share of premium passenger tyres measuring at least 16 inches to more than 50% within two years.
  • The company has launched a sensor-embedded passenger-car tyre and is testing the technology with manufacturers.
  • Revenue rose in July–September, but consolidated EBITDA fell as raw-material costs pressured margins.

JK Tyre expansion and premium targets

The investment programme comprises ₹1,130 crore in expansion already underway and ₹4,980 crore in additional projects. Managing Director Anshuman Singhania said the company wants premium passenger tyres of 16 inches and above to account for more than half of the relevant mix within two years, up from approximately 27–30% currently.

Eight of the company’s 10 recent approvals from automakers involved larger-rim tyres. In the September quarter, premium tyre sales rose approximately 10% year over year in the replacement market and 20% in supplies to automakers.

Smart tyres and fleet services

JK Tyre has moved from selling retrofit tyre-pressure monitoring kits to embedding sensors inside tyres. Its passenger-car smart tyre can monitor pressure, temperature and potential air leaks; management said discussions and testing with carmakers on integrating the technology into vehicle systems were underway.

The company has also developed JETWAY JUXe for commercial vehicles and Ranger HPe for passenger electric vehicles. It supplies tyres for electric buses and is participating in emerging electric-truck segments.

Singhania aims to make JK Tyre India’s largest commercial truck-tyre service provider within three years. Its services include retreading and pay-per-kilometre contracts, under which some customers pay for tyre usage and associated services rather than buying tyres outright. The network includes more than 1,500 fleet operators, over 70 mobility customers and 95 retreading centres.

Revenue growth accompanied by lower earnings

For July–September, consolidated revenue rose to ₹4,840.73 crore from ₹4,011.31 crore, an increase of 20.7%. Consolidated earnings before interest, taxes, depreciation and amortisation fell 35.9% to ₹343.14 crore from ₹535.68 crore.

Raw materials account for approximately 65–67% of manufacturing costs. Chief Financial Officer Sanjeev Aggarwal said capital discipline remains central to the expansion, including a preference for outsourcing two- and three-wheeler tyre production rather than committing substantial additional manufacturing investment.

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