, 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.

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