Michelin Expands Footprint in India with New Passenger Car Tyre Facility in Tamil Nadu

Foundation stone laid for Michelin India's tyre plant in Tamil Nadu

Stocks in news: Tata Steel, Torrent Power, TVS Motor, JK Tyre, FirstsourceThe foundation stone laying ceremony for the manufacturing facility of tyre major Michelin, was held near here on Saturday, Minister for Industries TRB Rajaa said. The plant located in neighbouring Tiruvallur district would be expanded at an investment of Rs 563.67 crore in the existing manufacturing facility of Michelin, to produce passenger car tyres. "It gives us immense pride that a global industry leader like Michelin, with a 130-year legacy in shaping the tyre industry, has chosen to reinvest in Tamil Nadu. This decision is a testament to their faith in the State, and this government under the visionary Chief Minister M K Stalin," Rajaa said in a social media post, after taking part in the foundation stone laying ceremony. The new facility would be among the company's best plants in the world, to be built on Industry 5.0 principles and advanced sustainability practices, incorporating Artificial Intelligence, robotics and automation to streamline production and enhance efficiency, he said.

Michelin to lay foundation stone for passenger car tyre facility at TN plant

"India is a very big market and (there are) many Indias within India," Gaganjot Singh, president and managing director - Africa, India and Middle East at Michelin, said. "We cater to the premium segment (and) we believe that we are achieving a critical mass in the premium segment, which is now going to grow significantly in the years to come." French tyre maker Michelin is investing Rs 564 crore in its plant near Chennai to add a passenger car tyre manufacturing facility, as part of a strategy to enhance its strategic presence in the Indian market, the company's top executives told ET. The foundation stone for the brownfield manufacturing facility will be laid on Saturday and production is expected to commence in the third quarter of 2025. "India is a very big market and (there are) many Indias within India," Gaganjot Singh, president and managing director - Africa, India and Middle East at Michelin, said. "We cater to the premium segment (and) we believe that we are achieving a critical mass in the premium segment, which is now going to grow significantly in the years to come." He said the investment decision for the Clermont-Ferrand-based tyre major was driven by several factors, including wanting to go "local to local" while also employing local talent. "Additionally also, we stand for (being a) premium product and we want to give premium service or be closer to the market, provide our products when they are needed, where they are needed," said Singh. The new unit is expected to create 200 jobs in addition to the existing 800 jobs involved in truck and bus radial manufacturing, he said, adding that the company's 'Made in India' passenger tyres would help it meet the growing demand from premium customers. Michelin India's managing director Shantanu Deshpande said that "from a value standpoint, the Indian market total is about $12 billion". "And it is going to double within the next 10 years. So the growth we have in front of us for the Indian tyre market is phenomenal," Deshpande said. "The investment of passenger car tyre manufacturing in India could not have been more timely due to the shift in consumer behaviour towards larger vehicles, with 50% of cars sold in India now being SUVs, and the improvement in road infrastructure." According to the executives, the new capacity will manufacture tyres for the Indian retail market with sizes up to 21 inches. The fresh investment is over and above the Rs 2,840 crore that the company has already invested in its factory near Chennai. The current facility has also been designed with scalability in mind, to enable flexibility for expansions or modifications to meet business needs and market demands, they said. Florent Chaussade, executive site director, Michelin India, said, "Our industrial footprint in Chennai is one of the largest factories built by Michelin in the past 10 years. This factory truly reflects our 3P strategy of people, profit and planet. When we talk about R&D in Michelin, it covers a lot of domains - material, tyres, IT, AI, but also machines. Some machines that we use in our factories are designed, created and built by Michelin. This will be one of the more modern factories in the world (for Michelin)." Michelin's Chennai factory has been operational since 2014, producing radial tyres for trucks and buses for both domestic use and exports. In 2020, the factory was expanded to meet the requirements of Indian defence mobility OEMs (original equipment manufacturers).

Michelin's India journey shifts to high gear with ₹564 cr premium car tyre manufacturing push in Chennai

, Michelin, the global tyre giant headquartered in France, has announced its next phase of manufacturing expansion in India with a fresh ₹564 crore investment. This brownfield investment will establish a cutting-edge passenger car radial (PCR) tyre facility at its existing site near Chennai, driven by the growing demand for premium tyres amid a surge in SUV sales across India. "This is a significant milestone and marks the start of the third chapter in our India journey," Gaganjot Singh, President of Michelin for Africa, India, and the Middle East, told businessline. "We are announcing the establishment of our first passenger car tyre manufacturing facility in India, backed by a substantial investment. This will create 200 additional jobs, adding to the 2,800 employees we already have nationwide. The €28 billion Michelin's Chennai factory, located at Thervoikandigai, about 50 km north of Chennai, has been operational since 2014. It produces about 49,000 tonnes of truck and bus radial (TBR) tyres a year for domestic and global markets. The fresh ₹564 crore investment is set to expand the company's footprint in India further. "Our first chapter started with the launch of TBR production when we established the Chennai plant with over ₹2,800 crore. At the time, radialisation in India was only 2per cent, and we were pioneers in introducing truck and bus radial capacity, leading the industry," said Singh. The second chapter was the creation of an innovation hub in Pune, which now houses nearly 2,000 employees. It serves as a global centre for artificial intelligence, data, and digital innovations while supporting Michelin's global research, development, and business services. "The Pune hub continues to grow, adding another vital phase to our journey in India," he added. "Local for local" Until recently, Michelin had been importing passenger car radial tyres for the Indian market. The new investment aligns with its "local for local" strategy, focusing on proximity to Indian consumers and reducing environmental impact. "We strongly support the government's Make in India initiative, especially in the areas of decarbonisation and sustainability," said Shantanu Deshpande, Managing Director of Michelin India. "Our tyres already play a key role in helping customers save fuel -- our truck and bus tyres provide up to 10-15per cent fuel savings. Now, we aim to extend this same level of efficiency to our passenger car tyres." Deshpande explained that the investment in local car radial tyre production is driven by India's evolving automotive landscape, on the back of improved infrastructure, and longer driving distances. With the growing popularity of larger vehicles, particularly SUVs, demand for premium, high-quality tyres is rising. Michelin is ideally placed to meet this need with high-performance, safe, and fuel-efficient tyres," he said. Michelin believes that the premium car market in India is set for rapid growth. Last year 50,000 cars sold in India were priced over ₹40 lakh and the average car price has now risen to ₹10-12 lakh. "Within the next decade, we expect the number of premium cars sold annually to double to 100,000 and we are committed to staying and growing in this space," he added. The upcoming new unit at the Chennai campus will produce premium passenger car tyres for the Indian market, with sizes reaching up to 21 inches. Florent Chaussade, Executive Director of Michelin India Ltd, said the first set of car radial tyres from this new facility is expected to be rolled out by Q3 of 2025. The company will target the replacement market for selling its car radial tyres, while exploring opportunities with Original Equipment Manufacturers (OEMs). With this fresh ₹564 crore investment, Michelin's cumulative investment in its Chennai manufacturing facility now stands at ₹3,404 crore. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on September 20, 2024