Michelin, the French tyre giant, has announced a ₹564 crore investment to establish a state-of-the-art passenger car radial (PCR) tyre manufacturing facility at its existing site near Chennai. This move comes as Michelin aims to meet the rising demand for premium tyres, driven by the growing SUV market in India.
“This marks a major milestone in our India journey,” said Gaganjot Singh, President of Michelin for Africa, India, and the Middle East. The new investment will create 200 jobs and marks Michelin’s first passenger car tyre manufacturing plant in India. The company already employs 2,800 people across the country.
Michelin, a €28 billion global leader in tyre manufacturing, has been operating its Chennai plant at Thervoikandigai, around 50 km from the city, since 2014. The factory produces about 49,000 tonnes of truck and bus radial (TBR) tyres annually for both domestic and global markets. With a fresh investment of ₹564 crore, Michelin plans to expand its operations in India. “Our journey began with the establishment of the Chennai plant and an initial investment of ₹2,800 crore. At that time, radialisation in India was only 2%, and we pioneered the introduction of truck and bus radial tyres, leading the industry,” said Singh.
The company’s second phase of growth involved the creation of an innovation hub in Pune, which now employs nearly 2,000 people. This hub focuses on artificial intelligence, data, and digital innovations, supporting Michelin’s global research and business services.
Recently, it has shifted focus to a “local for local” approach, reducing imports and producing passenger car radial tyres locally. This move supports India’s Make in India initiative and aims to reduce the environmental impact. “Our tyres help save fuel, and we plan to bring the same efficiency to passenger car tyres,” said Shantanu Deshpande, Managing Director of Michelin India.
Michelin’s investment in car radial tyres comes in response to India’s evolving automotive landscape, driven by better infrastructure and growing demand for larger vehicles, particularly SUVs. The premium car market is expected to grow, with 50,000 cars priced over ₹40 lakh sold last year, and this number expected to double within a decade. The new Chennai facility will produce premium passenger car tyres up to 21 inches, with production expected to start by Q3 2025. This latest investment brings it’s total investment in the Chennai plant to ₹3,404 crore.
