Balkrishna Industries enters PV car tyre segment in partnership with Pirelli; shares jump 4%

Balkrishna Industries shares jumped 4% on Thursday despite the broader weakness in the market after the company announced a major collaboration with Pirelli, which is one of the world’s largest tyre manufacturers based in Milan, Italy. The shares touched an intraday high of ₹2,128 apiece on the NSE.

The company’s exchange filing read, “Pirelli and Balkrishna Industries Ltd. (BKT) have signed a strategic agreement aimed at capturing the opportunities offered by the Indian car tyre market, one of the most dynamic and promising at the global level. India is today one of the most attractive automotive markets in the world, with car registrations estimated to increase by 5-7% annually from 2025 to 2030 and a premium Car tyre market seen growing almost fivefold.

What does partnership hold?

The collaboration is planned in two phases, starting with an offtake agreement in which Balkrishna Industries will produce 8,00,000 Pirelli-branded tyres by 2030 to Pirelli’s specific technological and quality standards.

In the second phase, both the companies envisage creating a 50:50 joint venture, subject to certain agreed conditions, and constructing production facilities dedicated to high-value car tyres from both Pirelli and Balkrishna Industries brands to serve Indian as well as International markets.

The exchange filing further read, “For Pirelli, with only a commercial presence in India at present, the agreement constitutes a significant step towards reinforcing its positioning in a Country characterized by great potential and growing demand for high-value tyres, the segment where Pirelli is focused”

Management commentary

Commenting on the development, Arvind Poddar, Chairman and Managing Director of Balkrishna Industries Ltd. (BKT), said: “This partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies”.

This collaboration marks Balkrishna Industries' entry into the passenger vehicle tyre market, which is held by incumbents like MRF, Apollo Tyres and JK Tyres. The agreement also paves the way for expansion of Balkrishna Industries to create new opportunities in domestic as well as international markets.

Balkrishna Industries share price performance

Shares of Balkrishna Industries have largely remained subdued this year amid the broader weakness in the market. The shares delivered -8% returns in 2026 on a YTD basis and -8.8% on a trailing-twelve month basis.

Meanwhile, shares of MRF, Apollo Tyres and JK Tyres fell as much as 2.5% as the passenger vehicle tyre segment became more competitive.