Balkrishna Industries Ltd. (BKT) announced a strategic partnership with Pirelli, the Italian tyre giant, to enter the passenger vehicle tyre market. The agreement, structured in two phases, begins with an offtake contract under which BKT will manufacture 8,00,000 Pirelli-branded tyres by 2030, meeting Pirelli’s technological and quality standards. Shares rose 4% on Thursday, reaching an intraday high of ₹2,128 on the NSE despite broader market weakness.

Pirelli’s filing highlighted India as one of the most attractive automotive markets, with car registrations projected to rise 5-7% annually from 2025 to 2030. The premium car‑tyre segment is expected to grow almost fivefold during the same period, according to the exchange filing, positioning the partnership to capture significant opportunities in a dynamic and promising market.

In the second phase, BKT and Pirelli envisage a 50:50 joint venture, subject to agreed conditions, to build production facilities dedicated to high‑value car tyres for both brands. These plants would serve Indian and international markets, expanding the reach of both companies beyond their current commercial presence in India.

Arvind Poddar, Chairman and Managing Director of BKT, said the partnership brings together complementary strengths to capture the opportunities of a growing market while creating value for both companies. He added that the collaboration marks BKT’s entry into the passenger vehicle tyre market, currently dominated by incumbents such as MRF, Apollo Tyres and JK Tyres, and paves the way for new domestic and international opportunities.

Shares of BKT have remained subdued this year amid broader market weakness, delivering -8% returns on a YTD basis and -8.8% on a trailing‑twelve‑month basis. In contrast, shares of MRF, Apollo Tyres and JK Tyres fell as much as 2.5% as the passenger vehicle tyre segment became more competitive. The 4% jump in BKT’s stock reflects investor sentiment amid sector volatility.