Michelin to Launch Locally Produced Tyres in India

Clermont-Ferrand (France), Mar 30 (PTI) French tyre major Michelin expects to roll out locally-produced passenger vehicle tyres from its Chennai facility this year with plans to progressively ramp up the product portfolio to cater to varied segments, according to a senior company executive.

The Clermont-Ferrand based group, which has 86 tyre production sites across the globe, is investing Rs 564 crore to set up manufacturing capacity for passenger vehicle tyres at its Chennai-based facility.

"We want to bring a product that the Indian market needs. That's our first commitment," Member of the Group Executive Committee and Executive VP Manufacturing Pierre-Louis Dubourdeau told PTI in an interaction.

He noted that the group would first target big-sized vehicles including SUVs, allowing it to showcase its technological advanced product range.

"With the first tyre expected to roll out this year, we will progressively ramp up the portfolio because one product cannot cater to the market," Dubourdeau stated.

He noted that the company would roll out products adapted to the Indian road conditions. "We are very excited about the growth potential of the market..the objective is to target the part of the market where consumers value the product of Michelin. So that's probably for higher seat size SUVs."

Dubourdeau said the company would continue to import certain tyres as manufacturing all kinds of tyres in one place is not feasible. "It is difficult to make all of the products in one plant. It's very technically difficult."

He however noted that the tyremaker is looking to cater to varied customer segments in the country. Dubourdeau said that till the time the company is able to establish local sourcing of the highly advanced raw materials, it will have to take the import route for such materials.

The local manufacturing would help the company scale up operations in India, which remain subdued with the government introducing import restrictions in 2020.

The tyre maker sells only premium bigger size PV tyres in limited quantities especially for performance-oriented models in India. In 2020, the government imposed curbs on imports of certain new pneumatic tyres used in motor cars, buses, lorries and motorcycles in a move to promote domestic manufacturing.

Tyre companies can now import only a small number of tyres into the country under a limited import licence, which was not the case before 2020.

Michelin however sells a wholesome range of locally-manufactured radial truck/bus tyres and defence tyres for original equipment manufacturers (OEMs) as well as for the replacement market.

The group invested Rs 2,840 crore on the Chennai plant which has an installed production capacity of over 30,000 tonne per annum. The facility, which has been operational since 2014, caters mainly to the Indian market and few export markets. Besides, Michelin gets two-wheeler tyres manufactured in the country through a partner.

Michelin employs close to 1.3 lakh people globally. The company, which produced around 200 million tyres in 2022, has set a goal of achieving 100 per cent sustainable materials in its tyres by 2050.

The group aims to become a leader in composite solutions, particularly flexible composites like coated fabrics, films, seals, conveyors, belts, hoses, and inflatable structures. It operates its composites businesses worldwide under the brands of the Fenner group, which it acquired in 2018.