CEAT increases capacity by 3.5 million units, targeting premium segment

To match the rapidly evolving Indian automotive sector, where significant growth in passenger vehicle market volumes and a dominance of the replacement segment (65%) are expected, CEAT Limited announced a major investment. The Board of Directors approved an outlay of ₹13.14 billion to modernize and expand the plant in Sriperumbudur (Chennai). This expansion, scheduled for completion by the first half of FY2028, will add 3.5 million units of annual capacity.

Financial Director Kumar Subbiah confirmed that this increase is necessary as the current plant load is already at an impressive 80%. As a result, the total capacity of the passenger vehicle tire plant will reach 13 million units. The expansion is directly targeted at meeting the growing demand for more complex and high-quality tires, driven by trends in the automotive industry, including the shift to larger wheel rims.