Apollo Tyres Vice-Chairman Neeraj Kanwar expressed strong confidence in the Indian market during the World Economic Forum 2026 in Davos-Klosters, Switzerland, projecting double-digit growth for 2026. The optimistic outlook comes as recent GST cuts have strengthened consumer spending power and improved tyre replacement demand, which Kanwar directly linked to enhanced road safety.

Strong Indian Market Performance

Kanwar highlighted Apollo's robust performance across multiple vehicle segments in India, with the company expanding its presence in two-wheelers while gaining market share in traditional segments. The GST reductions have created a favorable environment for increased consumer spending, directly benefiting the tyre replacement market.

The company's sponsorship of the national cricket team since October has proven effective in expanding brand recognition in rural markets, boosting distribution for passenger cars and two-wheelers. Kanwar noted that 2026 marks Apollo's 50th year since its first hire in November 1976, emphasizing the company's long-term commitment to the market.

European Market Challenges

In stark contrast to India's promising outlook, Apollo faces significant headwinds in Europe. The company is achieving only 1-2% growth in the region, operating primarily in the niche, high-end segment of ultra-high-performance tyres of 17 inches and above. Despite outperforming the broader market, profitability remains under pressure.

Kanwar identified rising imports of cheaper Chinese tyres as a structural challenge for Europe, noting that while India benefits from protective tariffs, Europe lacks such protection. He stated he sees no indication of recovery in the European market yet.

Strategic Restructuring

To address European challenges, Apollo is implementing significant operational changes. The company plans to shut its Netherlands plant by June or July 2026, shifting production to Hungary and India. This restructuring aims to lower the cost base and improve margins over time.

Additionally, Apollo has begun cutting overheads and reducing advertising and publicity spend in Europe. The company is investing more heavily in research and development and brand building to compete on technology rather than price, differentiating itself from lower-cost Chinese competitors.

Raw Material Outlook

Regarding input costs, Kanwar reported that raw material costs have stabilized after earlier increases. He expects costs to remain broadly at current levels, with a possible 1-2% rise over the next two quarters, providing some predictability for operational planning.

Market Performance

Apollo Tyres shares were trading marginally lower at ₹506.90 on January 20, reflecting mixed market sentiment amid the company's contrasting regional outlooks and strategic restructuring plans.

Apollo Tyres Ltd has received an ESG (Environmental, Social, and Governance) rating of 68 from ESG Risk Assessments & Insights Limited, as disclosed in a regulatory filing dated January 8, 2026. The rating was voluntarily assigned to the tyre manufacturer and communicated to stock exchanges under mandatory disclosure requirements.

Regulatory Compliance and Disclosure

The company made the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. This regulatory framework requires listed companies to inform exchanges about material developments, including ESG ratings.

Corporate Communication

The disclosure was signed by Seema Thapar, Company Secretary & Compliance Officer of Apollo Tyres Ltd, and submitted to both the National Stock Exchange of India Ltd and BSE Ltd. The company has also made this information available on its official website at www.apollotyres.com , ensuring transparency for all stakeholders.

Company Information

Apollo Tyres Ltd operates from its corporate office at 7 Institutional Area, Sector 32, Gurugram 122001, with its registered office located at 3rd Floor, Areekal Mansion, Panampilly Nagar, Kochi 682036. The company holds CIN L25111KL1972PLC002449 and maintains GST registration number 06AAACA6990Q1Z2.

The ESG rating disclosure reflects the company's commitment to maintaining transparency in its environmental, social, and governance practices, providing investors and stakeholders with standardized metrics to evaluate the company's sustainability performance.