Apollo Tyres Plans Big ₹3,500 Crore Expansion for FY27

By Amit Jangra | Published Date : May 19, 2026

Apollo Tyres plans ₹3,500 crore investment in FY27 to expand tyre production as demand from trucks, buses and commercial vehicles stays strong.

Apollo Tyres is preparing for a large business expansion in FY27 as demand for tyres continues growing in India and Europe. The company has planned nearly ₹3,500 crore investment for capacity expansion because many plants are already running close to full production levels. Officials connected with the company said demand stayed strong during the last quarter, especially from transport and commercial vehicle sectors.

Reports showed factory utilisation reached around 90% in recent months. Because of this, the company now wants to increase production capacity for passenger vehicle and commercial vehicle tyres. Demand linked with trucks, buses and logistics vehicles remained active in many areas during the quarter.

Big Investment Planned for India Operations

Table of Contents

1. Big Investment Planned for India Operations

2. Demand for Commercial Vehicle Tyres Staying Strong

3. Price Hikes Already Started

4. Other Tyre Companies Also Expanding

5. Company Earnings Improved in FY26

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A major share of the planned investment will be used inside India. Company officials said almost ₹3,000 crore from the total capex may go toward Indian manufacturing expansion. The company is increasing production connected with truck tyres, passenger vehicle tyres and other commercial transport segments.

The remaining investment may be used in Europe, where expansion work is already moving at the Hungary facility. Apollo Tyres management said present demand conditions are still looking healthy, so the company wants to continue expansion without delay.

People connected with transport business say demand for tyres used in mini trucks, cargo carriers and long-route commercial vehicles has stayed stable in several markets. Fleet operators are also replacing old tyres more frequently because road movement and delivery activity remain active.

Demand for Commercial Vehicle Tyres Staying Strong

During the recent quarter, Apollo Tyres reportedly saw strong growth in replacement demand as well as OEM supply business. Truck and bus radial tyre categories showed good movement during the period. Commercial transport activity and freight movement helped demand stay healthy in many regions.

The company also said April demand remained strong in several categories. Because of this, management believes momentum may continue during the coming quarters too. Demand connected with pickups and cargo transport vehicles also remained active due to logistics and delivery operations.

Still, company officials admitted raw material prices are creating pressure. Costs linked with rubber, energy and transportation have increased recently because of global market uncertainty and West Asia-related issues.

Price Hikes Already Started

Apollo Tyres has already started increasing tyre prices to handle rising expenses. Reports suggest the company announced around 6% to 8% price hikes during the current period. Some increase has already been applied in the Indian market.

However, officials also explained that these price hikes may only cover part of the rising raw material pressure. If commodity prices continue moving higher, additional price changes may happen later.

Many transport businesses connected with trucks and commercial vehicles are now watching tyre costs carefully because running expenses are already increasing in fuel and maintenance areas also.

Other Tyre Companies Also Expanding

Apollo Tyres is not the only company increasing investment plans. Rival tyre makers are also expanding manufacturing because factory usage levels are becoming very high. Industry experts believe tyre demand may continue growing if transport movement and vehicle sales remain stable across India.

Commercial transport operators using buses, mini trucks and heavy cargo vehicles are expected to remain important customers for tyre companies over the next few years.

Company Earnings Improved in FY26

Apollo Tyres also reported stronger financial performance during FY26. Revenue increased during the year, while profit and operating margins also improved compared to earlier periods.

India remained the company’s biggest market during the year. Replacement demand continued contributing a large share of overall business earnings. The company now hopes expansion projects will help support future growth as transport activity and vehicle demand continue increasing slowly across different sectors.

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Frequently Asked Questions on Commercial Vehicle

1. Why is Apollo Tyres increasing investment in FY27?

Ans: Apollo Tyres is expanding capacity because tyre demand is growing strongly in India and Europe.

2. How much investment has Apollo Tyres planned for FY27?

Ans: The company has planned around ₹3,500 crore capex for expansion activities.

3. Which vehicle segments are helping tyre demand grow?

Ans: Demand from trucks, buses, mini trucks, pickups and commercial vehicles is supporting tyre sales growth.

4. Will tyre prices increase further in future?

Ans: Company officials said more price hikes may happen if raw material and energy costs continue increasing.

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