Michelin is expanding its India strategy beyond tyre production, with plans to use the country as a wider base for manufacturing, engineering, AI, R&D, global sourcing and exports. The move comes as the French tyre maker strengthens its presence in India’s growing automotive market.
The company has started producing its first locally made passenger car tyre, the Primacy 5, at its Chennai plant. This marks Michelin’s entry into domestic passenger vehicle tyre production after nearly 10 years of manufacturing truck and bus radial tyres in India.
“India is much more than a tyre market for us. It is about building an entire ecosystem,” said Vitor Silva, President, Michelin Africa, India and the Middle East Region.
Michelin employs around 2,500 people in India across manufacturing, digital engineering, artificial intelligence, corporate services and R&D. The company also operates one of its largest global digital and IT centres in India, while its Pune R&D facility develops products for North American and Asian markets.
Michelin also plans to increase sourcing from Indian suppliers as part of its global procurement strategy. “Our intention is to make India one of Michelin’s main global hubs,” Silva said.
The company’s passenger tyre production comes as India’s tyre industry sees rising demand for larger and premium products, driven by the growing popularity of SUVs and premium vehicles.
“SUVs accounted for around 20% of new car sales a decade ago. Today, they account for around 50% of all new cars sold in India. Annual SUV sales have increased from around half a million to 1.5 million units. We will manufacture tyres ranging from 16-inch to 22-inch sizes at the Chennai factory,” said Shantanu Deshpande, Managing Director, Michelin India.
The Chennai plant will make 16-inch to 22-inch tyres for the premium replacement market. Michelin also plans to use India as an export base as production grows. The plant already exports truck tyres to North America and Europe, while passenger tyre exports are expected to begin after domestic demand is met, with the Middle East and Africa among the initial markets.
The Chennai facility has installed capacity of 54,000 tonnes annually across truck, bus and passenger car tyres, with scope for future expansion.
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