CHENNAI: India’s leading tyre manufacturer, JK Tyre & Industries, on Tuesday said it plans to invest Rs 4,950 crore as part of its overall expansion strategy. Of this, around 90% will be invested in its Chennai plant to ramp up production of passenger car radial (PCR) tyres over the next three years, while the remaining amount is likely to be allocated to its truck and bus radial (TBR) tyre unit in Mysore.
“We are planning to increase capacity by 24% in both TBR and PCR segments. Nearly Rs 4,500 crore of the total Rs 4,950 crore investment will be deployed in the Chennai plant over the next three years in three phases,” said Raghupati Singhania,, Chairman and Managing Director.
JK Tyre is expecting to commission first phase of this expansion by August 2028, and second and third by April 2029 and December 2029, respectively. The earlier expansion which was initiated by the company is expected to be commissioned by Q3 FY27. The tyre maker will also have capex of Rs 1,000 crore for the current fiscal.
Meanwhile, the company expects a price rise of 16%-20% on all raw materials in Q1FY27 due to the West Asia crisis and intending to pass on the same to the customer, resulting another round of price hike of Rs 6% on all categories of tyres in the near future. Earlier, the company had raised 4%-5% on tyres.
Singhania also said that the company is shifting the raw material sourcing to countries like China, Taiwan and Korea.
JK Tyre MD Anshuman Singhania said that the company has bagged orders for EV tyres from Renault Duster, Tata, Hyundai, and currently has 50% market share in EV SCV segment.
Chief Financial Officer (CFO) Sanjeev Aggarwal, claimed that the company has doubled its EV tyre volume by 50% between Q3 and Q4 FY26. Its share of exports in total revenue was 12-13% in FY26. JK Tyre reported a consolidated net profit of Rs 177.96 crore in Q4 FY26 compared to Rs 98.66 crore during the same period last year. The company also reported an annual profit of Rs 775.90 crore in FY26 against Rs 509.31 crore in FY25.