Michelin Opens First India Plant for Passenger Tyres, Targets SUV Market
Michelin has expanded its presence in the world market with the inauguration of a new manufacturing plant near Chennai for passenger vehicle tyres, its first in the country for this category. The plant, which has increased the company's annual manufacturing capacity to 54,000 tonnes, is a testament to India's significance as a major engineering and technology development hub for Michelin.
The new plant, which was expanded with an investment of Rs. 686 crore, will produce tyres ranging from 16 to 22 inches, targeting the growing SUV and premium car market. Michelin aims to make India its most important market in the next ten years, as stated by Vitor Silva, Michelin's President - Africa, India and Middle East. The company is also committed to sustainability, with its India-made tyres currently containing 45% recycled materials, a figure it aims to increase to 50% by 2030.
In addition to manufacturing, Michelin's India technical centre in Pune serves as the global Centre of Excellence for AI technology development for tyre applications. Despite initial confusion, it is indeed a significant AI technology development centre for Michelin's global business. The company is also investing in building a network of 75 standalone Michelin Tyres & Service Stores to promote its tyres in the country.
With the new plant, Michelin is set to enter the passenger tyre market through the aftermarket route, focusing on durability, safety, and comfort. The company's commitment to India is evident in its significant investments and expansion plans, not just in manufacturing, but also in technology development and retail presence. As India continues to grow as a major market, Michelin's strategic moves position it well for future growth in the stock market today.
