CEAT Ltd, a prominent tyre manufacturer under the RPG Group, has announced an investment of approximately ₹450 crore to scale up production at its Chennai plant in Kancheepuram, Tamil Nadu. The expansion will boost the plant’s capacity for Passenger Car and Utility Vehicle (PCUV) tyres by around 35%, addressing projected growth in the segment over the medium term.
The Chennai facility currently produces about 70 lakh tyres annually and operates at around 80% utilization. The proposed capacity addition is scheduled for phased implementation and is expected to be completed by the end of FY 2027. The capital will be sourced through a combination of internal resources and debt.
This move aligns with CEAT’s broader growth strategy, as the company anticipates strong demand in the PCUV segment. In FY26, CEAT is targeting double-digit growth and has set aside ₹900–1,000 crore for capital expenditure, focused largely on expanding passenger car and truck/bus radial tyre manufacturing. In the previous financial year, CEAT had invested ₹946 crore toward similar capacity-building initiatives.
According to industry data from IMARC, India’s tyre market reached 202.2 million units in 2024 and is expected to rise to 263.8 million units by 2033, driven by increased vehicle production and rising replacement demand. The market is projected to grow at a compound annual rate of 2.85% from 2025 to 2033.
For the first quarter of FY26, CEAT posted a consolidated net profit of ₹112.3 crore, down 27.2% from ₹154.2 crore in the same quarter last year. Consolidated revenue, however, rose 10.5% year-on-year to ₹3,529.4 crore. The EBITDA margin stood at 10.9% for the quarter.
On a standalone basis, CEAT recorded a net profit of ₹135.4 crore in Q1 FY26, representing a 9.2% drop from ₹149.2 crore in Q1 FY25. Standalone revenue increased by 11.1% year-on-year to ₹3,520.7 crore, with an EBITDA margin of 11.1%. CEAT (Cavi Elettrici e Affini Torino) is one of India’s leading tire manufacturers, renowned for its innovative, durable, and high-performance tire solutions. Established in 1958 and headquartered in Mumbai, it is a flagship company of the RPG Group.
The company produces a wide range of tires catering to various vehicle categories, including two-wheelers, passenger cars, commercial vehicles, and off-road applications. The company is recognized for its cutting-edge R&D and commitment to safety, fuel efficiency, and sustainability. With a robust manufacturing footprint and an extensive distribution network across India and beyond, it continues to set benchmarks in the tire industry, offering products that enhance driving experiences and address diverse mobility needs.
