GST reduction to drive tyre demand; JK Tyre expects FY26 growth to be above 8%

The tyre industry is set to see stronger growth in FY26, with JK Tyre & Industries expecting demand to climb a few percentage points higher than earlier estimates of 7–8% following the government’s GST cuts.

Speaking to CNBC-TV18, Chairman and Managing Director Raghupati Singhania said the industry’s growth outlook remains intact, with the tax reduction giving an added push.

“Growth will be more or less as estimated earlier, maybe a few points higher because the equilibrium is not disturbed. It is not a price-sensitive product. This is a consumption-need product,” Singhania explained, stressing that the GST cuts will provide a marginal but steady boost rather than an artificial surge in demand.

The recent reduction in GST rates—from 28% to 18% on most tyres and to 5% for tractor tyres—is expected to benefit the business across the board. Tractor tyre demand is already showing signs of improvement, while trucking tyres are likely to have a deeper impact on the economy.

Singhania pointed out that road transport accounts for nearly 70% of India’s supply chain, making trucks a crucial part of industrial movement. Lower GST will reduce the capital costs of trucks and, in turn, encourage purchases.

On the consumer side, Singhania clarified that the GST move does not amount to a price cut from manufacturers.

“Let’s just say my price was ₹100, and I was charging 28% on top of it. Tomorrow onwards, I will do ₹100 at 18% and bill the customer. So, to this extent, you may say the cost of acquisition for the customer comes down. It’s not really a price cut per se,” he said.

He also noted that raw material trends remain stable. Rubber prices, while in the off-season due to monsoons, are reasonable and not witnessing any sharp increase. Other input costs are also steady, providing additional comfort for the sector.

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