Ceat Tyres has initiated a major expansion project at its Chennai facility to increase production capacity. Managing Director and CEO Arnab Banerjee stated, “We completed the first phase of our truck and bus radial (TBR) production expansion last quarter, and the second phase will be completed over the next six to nine months.” The current TBR capacity at the Chennai plant is 45,000 units per month.
In addition to TBR, Ceat is also scaling up its passenger car radial (PCR) production. “The PCR capacity currently stands at 20,000 units per day, and we plan to increase it by 30% to 40%,” Banerjee noted. Once completed, this expansion will raise daily production to around 27,000 to 28,000 units. The Chennai expansion is part of Ceat’s broader Rs 1,000 crore capital expenditure plan for the year.
Ceat recently raised prices for its TBR and PCR products by 2% to 3.5% on October 1, and Banerjee hinted at further price hikes in other product categories. “We are planning additional increases of 1.5% to 2% in mid-October, with more adjustments in November or December,” he said, attributing the price hikes to rising natural rubber costs and supply shortages.
Despite challenges, Ceat posted standalone Q2 revenue of Rs 3,298 crore and a net profit of Rs 136.5 crore. CFO Kumar Subbiah highlighted double-digit growth in the replacement and international markets, stating, “We managed to offset some of the raw material price hikes through cost efficiencies and price increases, though we also saw our debt rise by Rs 280 crore this quarter.”
CEAT Tyres, part of the RPG Group, is one of India’s leading tire manufacturers, with a strong presence in both domestic and international markets. Established in 1958, CEAT produces a wide range of tires for two-wheelers, cars, trucks, buses, and off-highway vehicles such as agricultural and industrial equipment.
The company is known for its focus on innovation, safety, and fuel efficiency, with manufacturing facilities located across India. CEAT has a strong network of dealers and service outlets, providing customers with reliable products and after-sales support. In addition to its domestic success, CEAT exports to more than 100 countries, reinforcing its reputation as a global player in the tire industry.
