Indian tyre maker Apollo Tyres says it is investing ?3,500 crore in Capex, with ?3,000 crore dedicated to the Indian market and ?500 crore for European operations in FY2027. The plan prioritises growth and capacity expansion (80% of total outlay) to mitigate supply gaps and operational inefficiencies caused by soaring raw material costs, even after the company’s plan to close its plant in the Netherlands.
The investment in India will be to expand truck and passenger radial tyre capacities; while the rest will fund passenger car tyre expansion at its facility in Hungary to support the European operations.
The company’s CFO Gaurav Kumar said that capacity utilisation is at a high of 90% across both its Indian and European operations, “Apollo expects to remain at full utilisation and continue to progress on our planned expansion initiatives,” he said during the company’s post-results.
India still remains Apollo’s core market with revenue having risen 14% in the March quarter. The company said truck and bus replacement volumes reached their highest-ever quarterly level, supported by strong high-teen growth in both replacement and original equipment segments.
Meanwhile, Apollo is restructuring its European manufacturing footprint. The Enschede plant in the Netherlands, its last production facility in Western Europe, will close in June. The company has taken a non-cash write-off of EUR43 million on fixed assets and expects a cash payout of about EUR50 million under its social plan, with total cash provisions exceeding €55 million, including legal and related costs.
The company expects the closure to help restore European profitability. EBITDA margins in Europe stood at 14.6% in Q4 FY26, still below the company’s historical norm of more than 16%.
Elsewhere, against the rising material costs, the company has already announced price increases of 6-8% in India and 2% in Europe, with further hikes expected.