Chennai: Michelin is broadening its ambitions in India beyond tyre manufacturing, positioning the country as a strategic base for production, engineering, artificial intelligence, research and development, global sourcing and exports as the French tyre maker deepens its presence in one of the world’s fastest-growing automotive markets.The company on Monday rolled out its first locally manufactured passenger car tyre — the Primacy 5 — from its Chennai factory, marking its entry into domestic passenger vehicle tyre production after nearly a decade of manufacturing truck and bus radial tyres in India.“India is much more than a tyre market for us. It is about building an entire ecosystem,” said Vitor Silva, President, Michelin Africa, India and the Middle East Region.He said Michelin employs about 2,500 people in India across manufacturing, digital engineering, artificial intelligence, corporate services and R&D. It also operates one of the group’s largest global digital and IT centres in the country, while its Pune R&D facility develops products for North American and Asian markets.The company also plans to increase procurement from Indian suppliers as part of its global sourcing strategy. “Our intention is to make India one of Michelin’s main global hubs,” Silva said.Meanwhile, Michelin has begun manufacturing passenger car tyres in India, joining a growing industry push towards localisation as rising SUV sales and premiumisation reshape the country’s tyre market.“SUVs accounted for around 20% of new car sales a decade ago. Today, they account for around 50% of all new cars sold in India. Annual SUV sales have increased from around half a million to 1.5 million units. We will manufacture tyres ranging from 16-inch to 22-inch sizes at the Chennai factory,” said Shantanu Deshpande, Managing Director, Michelin India.Michelin will manufacture 16-inch to 22-inch tyres, targeting the premium replacement market, where demand is being fuelled by the rapid shift towards SUVs and higher-end passenger vehicles.The company’s move reflects a broader trend in India’s tyre industry, where manufacturers are increasingly investing in local production of larger, premium tyres as consumers migrate from small hatchbacks to SUVs and crossovers.Although the immediate focus is the domestic market, Michelin intends to use India as an export base as production expands. The Chennai factory already exports truck tyres to North America and Europe, while passenger car tyre exports are expected to begin once domestic demand is met, with the Middle East and Africa among the initial target markets.The Chennai plant has an installed capacity of 54,000 tonnes per year across truck, bus and passenger car tyres, with room for future expansion.
