Apollo to invest €540m in India tire capacity expansion

Gurugram, India — Apollo Tyres’ board has approved a INR58 billion (€540 million) capital expenditure programme to expand truck and bus radial (TBR) and passenger car radial (PCR) capacity at its Andhra Pradesh facility over the next three financial years.

The investment will be spread across fiscal year 2027 to 2029, with around INR20 billion earmarked as growth capex in fiscal 2027 (starting April 2026).

In a 10 Feb third-quarter conference call, Apollo said the investment will see production capacity raised by 18% for PCR and more than 20% for TBR in India.

“Our India [PCR] capacity is a little short of 60,000 – about 58,000 tires - per day, and we are adding 10,500; so we are adding about 17%-18% of capacity to our India PCR capacity,” explained CFO Gaurav Kumar.

Similarly, Kumar said, the group’s existing TBR capacity is just over 15,000 units per day and the investment will add 3,600 units per day capacity of capacity, amounting to over 20%.

Commenting on the investment, Apollo said its current capacity utilisation level in India is in the high 80s.

“Given our growth expectations for the near future, as seen by the current demand momentum, we would start hitting capacity limitations soon,” said Kumar.

Hence, said the Apollo CFO, “it was prudent for us to plan investments in our core categories for the next 3–4 years.”