Goodyear Tire & Rubber Company is exploring a potential sale of its agricultural tyre division in India, targeting a valuation of ₹2,500–2,700 crore. The move is part of a wider strategic overhaul led by its US parent, which aims to streamline operations and raise capital through asset divestments.
Goodyear India’s farm tyre unit is a dominant player, holding an estimated 50% market share in the domestic agricultural tyre segment. The division supplies major tractor OEMs and operates two manufacturing plants in Ballabgarh, Haryana, and Aurangabad, Maharashtra. These facilities also support Goodyear’s broader passenger vehicle tyre portfolio in the country.
Despite its strong market position, the farm tyre division has come under pressure due to fluctuating raw material costs, weaker rural demand, and challenging monsoon patterns. For FY25, EBITDA is projected in the range of ₹175–200 crore.
The possible sale aligns with Goodyear’s global portfolio optimisation strategy, prompted in part by activist investor Elliott Management. In November 2023, Goodyear initiated a strategic review to divest non-core assets, including its chemical unit and off-the-road (OTR) division, the latter of which was recently sold to Yokohama for $905 million.
Goodyear aims to generate more than $2 billion in gross proceeds and reduce annual costs by $1 billion by the end of 2025. The Indian farm tyre division is one of several verticals under review.
India’s farm tyre market has faced several headwinds, including rising input costs, tighter margins, and unpredictable weather patterns. Demand has been particularly affected by low reservoir levels and muted rural spending. These pressures have reduced volumes and eroded profitability across the sector.
Moreover, operational complexity - such as unionised labour at Goodyear’s manufacturing sites, may pose additional challenges for potential acquirers.
The potential divestment reflects a wider trend among global tyre manufacturers to sharpen focus on core, high-growth segments, such as EV and smart tyres, while divesting lower-margin or capital-intensive operations. For India, this could signal increased consolidation in the agricultural tyre space and open the door for more specialised players to scale production and innovation tailored to evolving farm mechanisation trends.
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