Tyre manufacturer JK Tyre is increasing exports from its manufacturing units in Mexico to America in view of the US imposing 50 per cent tariff on goods sourced from India. The company has two facilities in Mexico catering for Latin America, Brazil and the US markets.
“Currently, 65 per cent of tyres made in Mexico are used for the domestic (Mexican market). We are planning to increase the exports from Mexico from a level of 8 per cent to 10 per cent to 10 per cent to 15 per cent to the US,” its managing director Anshuman Singhania told reporters here on Thursday. The Mexican factories produce about five million tyres per annum.
The US accounted for 3 per cent of JK Tyre total revenue at ₹14,772 crore in FY25. With the 50 per cent tariff, the company has diverted its exports to the US from India to other markets including Europe. “The US market was quite lucrative when we were exporting earlier. But, with the policy change, we have diverted the same to other countries from India,” he added.
To a query on GST rate cuts, Singhania said, the move would result in a surge in demand. “We are building up a lot of inventory to cater into the sudden rush, which is going to happen after September 22 (when the new GST reforms will come into effect) for the festive season,” he said.
