Michelin is set to invest ₹564 crore in expanding its Chennai plant to produce passenger vehicle (PV) tires, targeting the growing Indian market. The investment will enable the company to manufacture tires suited to local road conditions and cater to the demand for larger vehicles, especially SUVs.
Pierre-Louis Dubourdeau, Member of the Group Executive Committee and Executive VP of Manufacturing, shared that Michelin’s first locally-produced tire will roll out this year, with plans to gradually expand the product range. The company is focusing on the premium segment, primarily larger-sized SUVs, to introduce its technologically advanced tire offerings.
“India is a key market for Michelin, and we are committed to bringing products that meet the needs of Indian consumers,” said Dubourdeau. He further emphasized that the company’s products will be tailored for local road conditions, aligning with the increasing demand for high-performance tires in the country.
However, Michelin plans to continue importing certain tires as manufacturing all types of tires at a single plant presents technical challenges. Dubourdeau noted that while the company works on establishing local sourcing for specialized materials, imports will remain necessary until then.
This move comes after the Indian government introduced restrictions on the import of specific types of tires in 2020, aiming to boost domestic production. As a result, Michelin’s local manufacturing expansion will help scale its operations, which had been subdued due to these import curbs. While Michelin currently imports smaller quantities of premium-sized passenger vehicle tires, it aims to increase its local production to meet the growing demand.
Michelin’s Chennai facility, which began operations in 2014, is already a major manufacturing hub for radial truck and bus tires, as well as defense tires for original equipment manufacturers (OEMs). The plant, with an annual production capacity of over 30,000 tons, primarily serves the Indian market, along with a few export destinations. Michelin also partners with local manufacturers for two-wheeler tires.
Globally, Michelin produced approximately 200 million tires in 2022 and employs around 130,000 people. The company has committed to using 100% sustainable materials in its tire production by 2050. Additionally, Michelin aims to lead the composite solutions market, particularly in flexible composites like coated fabrics, films, seals, and hoses, through its Fenner Group, which it acquired in 2018. With its continued investments in India, Michelin is reinforcing its long-term commitment to the country’s automotive and renewable energy sectors.
