India

Apollo AP CapEx raises India PCR TBR tire market pressure

Apollo Tyres’ board approved about ₹5,810 crore to expand Andhra Pradesh PCR by ~3.7 million units and TBR by ~1.3 million units per year by FY2029, with growth CapEx starting FY27.

Aug 13, 20265 min read
Keywords
India PCR TBR tire market pressureApollo Tyres Andhra CapExFY29 PCR TBR capacity expansionApollo AP CapEx raises IndiaApollo AP CapEx raises India India

What changed

Apollo Tyres announced in early February 2026 a board-approved investment of about ₹5,810 crore to expand capacity at its Andhra Pradesh plant, adding roughly 3.7 million passenger-car radial tyres and 1.3 million truck-and-bus radial tyres per year by the end of FY2029.

Management later told analysts the CapEx spreads across FY27–FY29 with about ₹2,000 crore of growth CapEx in FY27, funded by internal accruals and debt, opening a multi-year tyre-building and curing-equipment buy cycle at the named Andhra Pradesh site.

Products affected

Primary map: PCR and TBR tyre-building machines and curing presses for the Andhra Pradesh incremental lines, banbury and mixing-room upgrades feeding the added volume, and moulds and handling systems sized for the 3.7 million PCR and 1.3 million TBR annual additions.

Buyer segments to prioritize

Prioritize Apollo Tyres Andhra Pradesh plant engineering and CapEx procurement locking FY27 growth packages, plus India tyre-machinery OEMs quoting into the ₹5,810 crore expansion.

Exporter action

Book tyre-building and curing-press slots against Apollo’s FY27 Andhra Pradesh growth CapEx before the first equipment freeze; vendors unable to meet Apollo’s plant acceptance and spare-parts SLAs risk exclusion from the PCR/TBR incremental lines. Industry estimate: curing-press and building-machine lead times still run 10–14 months.

Source context

Source: The Economic Times, Apollo Tyres Andhra Pradesh CapEx announcement, 4 February 2026. https://economictimes.indiatimes.com/industry/auto/tyres/apollo-tyres-to-invest-rs-5800-cr-to-expand-capacity-in-andhra-pradesh/articleshow/127914725.cms Secondary: Apollo Tyres analyst call transcript, 10 February 2026. https://corporate.apollotyres.com/content/dam/orbit/apollo-corporate/investors/announcements/2025-26/Transcript%20of%20Analyst%20Investor%20Conference%20Call%20-%20February%2010,%202026.pdf

Key takeaways

  • Apollo approved ~₹5,810 crore to add 3.7 million PCR and 1.3 million TBR units/year at Andhra Pradesh by FY2029.
  • Outreach: Apollo AP plant CapEx desks freezing tyre-building and curing packages in FY27.

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