U.S. Tariffs have no impact on JK Tyre; plan to export tires from Mexico facility remains intact.
In a significant development, JK Tyre & Industries' Mexico-based arm, JK Tornel, is set to increase exports to the US market following the suspension of US tariffs on imports from Mexico, which took effect in July 2025.
The zero-tariff status on Mexico-US trade has given JK Tyre a critical advantage, effectively neutralising the earlier tariff headwinds affecting its exports to the US. According to company leadership, a 90-day tariff suspension period starting July 2025 provides ample time for adjusting and expanding export operations from Mexico to the US.
Currently, JK Tornel exports about 7-8% of its production to North America. The company is focusing on leveraging its manufacturing plants in Hidalgo and Tultitlan to grow this share.
The Mexico business had faced pressure in earlier quarters due to tariff uncertainty, including an EBIT loss. However, recent performance shows recovery: Q1 saw a 12% revenue growth overall and about 7% on a constant currency basis. The company is optimistic about growth prospects in Mexico for the rest of FY26, with the US market being a key driver now supported by tariff relief.
Interestingly, JK Tyre’s overall export share to the US directly from India remains small (around 3%). The company has been strategically redirecting US-bound exports through its Mexico facilities to avoid tariffs. This shift aligns with JK Tyre’s broader goal of double-digit revenue growth in FY26, driven in part by increased exports from Mexico to the US under the resumed zero-tariff framework.
Anshuman Singhania, Managing Director of JK Tyre & Industries, is seeking opportunities to increase sales from Mexico to the US. The company generates a high single-digit percentage of its revenue from the US market, although the exact percentage was not specified. Singhania expects the growth in the US market to continue.
It is important to note that the tariffs announced by then-US President Donald Trump would have been effective from August 1, 2020. However, on July 31, 2020, the governments of Mexico and the US reached a bilateral agreement that granted a 90-day suspension of these tariffs.
JK Tyre & Industries, a significant contributor to the Mexican economy, has three plants in Mexico that produce over six million tires annually. The company manufactures truck bias category and passenger radial tires in its Mexico plants.
Despite a 22% year-on-year decline in its consolidated net profit for Q1 ending in June 2025, the consolidated revenue from operations grew by more than 6% year-on-year to ₹3,869 crore. This revenue figure is higher than ₹3,639 crore in the April-June quarter of the last financial year.
In conclusion, the tariff suspension has opened up new opportunities for JK Tyre & Industries to boost its exports to the US market, with its Mexico plants resuming stronger export activity and increasing shipment volumes expected. This strategic export route via Mexico supplements the company's overall international growth plans amid ongoing global trade uncertainties.
- JK Tornel, the Mexico-based arm of JK Tyre & Industries, intends to expand its exports to the US market following the suspension of tariffs on imports from Mexico.
- The zero-tariff status has given JK Tyre a critical advantage, allowing it to grow its share of exports to North America, which currently stands at about 7-8%.
- Anshuman Singhania, the Managing Director of JK Tyre & Industries, is aiming to increasing sales from Mexico to the US market, generating a high single-digit percentage of its revenue from the US.
- JK Tyre & Industries, as a significant contributor to the Mexican economy, has three plants in Mexico that produce over six million tires annually, with a focus on manufacturing truck bias category and passenger radial tires.
- The tariff suspension has opened up new opportunities for JK Tyre & Industries to boost its exports to the US market, with its Mexico plants resuming stronger export activity and increasing shipment volumes expected, supplementing the company's overall international growth plans amid ongoing global trade uncertainties.
