Michelin Accelerates India Expansion with ₹564 Crore Investment in Premium Car Tyre Manufacturing in Chennai.

Michelin, the French tyre manufacturing giant, has announced a significant ₹564 crore investment to establish a new passenger car radial (PCR) tyre facility at its Chennai site. This expansion is driven by rising demand for premium tyres, particularly with the growing popularity of SUVs in India. The new unit will be located at Michelin’s existing plant near Chennai, which has been operational since 2014 and currently produces truck and bus radial (TBR) tyres for domestic and global markets.

“This marks the third chapter of our India journey,” said Gaganjot Singh, President of Michelin for Africa, India, and the Middle East. “With this investment, we are establishing our first passenger car tyre manufacturing facility in India, which will create 200 additional jobs.” Michelin already employs 2,800 people across the country.

The Chennai factory currently produces around 49,000 tonnes of TBR tyres annually, and the new investment brings Michelin’s cumulative commitment in India to ₹3,404 crore. The company is targeting the rapidly expanding premium car market, with a specific focus on tyres for larger vehicles like SUVs. According to Singh, the growing demand for premium, high-quality tyres aligns with the evolving automotive landscape in India, which has seen a surge in the sale of vehicles priced above ₹40 lakh.

Shantanu Deshpande, Managing Director of Michelin India, highlighted the company's commitment to sustainability and the government’s Make in India initiative. “Our truck and bus tyres already provide up to 15% fuel savings, and we aim to extend this efficiency to passenger car tyres,” he said. The investment is part of Michelin’s “local for local” strategy, reducing reliance on imports and focusing on proximity to Indian consumers.

The new facility is expected to start production by Q3 2025 and will manufacture premium car tyres, including larger sizes of up to 21 inches, to cater to India’s replacement market and explore partnerships with Original Equipment Manufacturers (OEMs). Michelin anticipates significant growth in the premium car segment in the coming years, projecting that sales of premium vehicles will double to 100,000 units annually by the end of the decade.

HBL