Michelin to start passenger car tire production in India
Michelin is investing 5.64 billion rupees (68 million dollars) in expanding its plant in India, where the production of passenger car tires will be launched, due to "growing demand for premium products and increasing popularity of crossovers".
According to Gaganjot Singh, president of the Michelin division in Africa, India, and the Middle East, the new project will create 200 jobs, while the company currently has around 2,800 employees in the country.
The 28 billion rupee (340 million dollar) facility, located 50 km north of Chennai (Tamil Nadu state), was launched in 2014 and currently produces around 49,000 tons of radial truck and bus (TBR) tires per year. "At the time of the plant's opening, the radialization of the Indian market was only 2%, and we were one of the pioneers to launch TBR tire production," Singh noted.
In the second phase of expanding its presence in India, the company opened an innovation center in Pune (Maharashtra), where around 2,000 employees currently work. The complex is one of the company's main centers for mastering artificial intelligence technologies and developing new digital innovations.
Currently, Michelin sells passenger car tires in India that are supplied from other countries, and the new investment is expected to, among other things, reduce the environmental impact. "We support the Made in India initiative [launched by the Indian government in 2014 to stimulate production development in the country], especially in terms of decarbonization and sustainable development," said Shantantu Deshpande, managing director of Michelin's Indian division. "Our tires already help reduce fuel consumption - the savings are up to 10-15% - and now we want to ensure the same level of energy efficiency with our passenger car tires".
Deshpande added that the new investment project is due to changes in the Indian automotive industry against the backdrop of infrastructure development and increased driving distances by local drivers. "Along with the growing popularity of larger vehicles, especially crossovers, the demand for high-quality premium tires is also growing," he said. "Our products are perfectly suited to meet the need for tires that provide a high level of safety and economy".
Michelin forecasts that the premium car market in India will experience rapid growth. Last year, 50,000 vehicles sold in the country cost over 4 million rupees (48,000 dollars), and the average vehicle price has increased to 1-1.2 million rupees (12-14,000 dollars). "We expect that in the next decade, the premium car market capacity will double to 100,000 units, so we are targeting development in this sector," Deshpande noted.
Florent Chossat, executive director of Michelin's Indian division, added that the first locally produced Michelin passenger car tires are expected to be manufactured by the third quarter of 2025. The products will be intended for the aftermarket, and possibilities for cooperation with automakers will be explored. It is planned to produce tires with a diameter of up to 24 inches.