Michelin is investing ₹564 crore to expand its Chennai manufacturing facility to produce passenger vehicle (PV) tires, catering to the growing demand in India. The expansion will allow Michelin to produce tires that are designed for local road conditions and meet the increasing demand for larger vehicles, particularly SUVs.
Pierre-Louis Dubourdeau, Member of the Group Executive Committee and Executive VP of Manufacturing at Michelin, stated that the first locally-produced tire will be launched later this year. The company plans to gradually broaden its product range, focusing initially on the premium segment, particularly larger SUVs, with advanced tire technology.
“India is a crucial market for Michelin, and we are dedicated to providing products that cater to the needs of Indian consumers,” said Dubourdeau. He emphasized that the tires will be specifically designed for Indian roads, responding to the rising demand for high-performance tires in the country.
Despite the expansion, Michelin will continue importing some types of tires. Dubourdeau explained that manufacturing all tire types at one plant presents technical challenges. The company is working on establishing local sourcing for specialized materials but will rely on imports until then.
This move comes after the Indian government imposed restrictions on certain tire imports in 2020 to encourage domestic production. Michelin’s expansion in India is in response to these import curbs, which had limited the company’s operations in the country. While Michelin currently imports some premium-sized passenger vehicle tires, the company aims to boost local production to meet rising demand.
The Chennai plant, which began operations in 2014, is a key hub for radial truck and bus tires, as well as defense tires for original equipment manufacturers (OEMs). With an annual production capacity of over 30,000 tons, the plant primarily serves the Indian market and a few export destinations. Michelin also collaborates with local manufacturers to produce two-wheeler tires.
On a global scale, Michelin produced about 200 million tires in 2022 and employs approximately 130,000 people. The company has committed to using 100% sustainable materials in its tire production by 2050. Additionally, Michelin plans to lead the composite solutions market, particularly in flexible composites like coated fabrics, films, seals, and hoses, through its Fenner Group, acquired in 2018. Through its ongoing investments in India, Michelin is reinforcing its long-term commitment to the country’s automotive and renewable energy sectors.
