Michelin Accelerates India Expansion To Tap Premium Passenger Car Tyre Market

Michelin

Michelin is turbocharged about India. The global tyre manufacturer has increased its investment in its Chennai plant to INR 6.86 billion, up from the INR 5.64 billion announced last September, as it prepares to manufacture premium passenger car tyres locally for the first time. The move comes as India’s automotive landscape undergoes a dramatic shift, with SUVs accounting for half of all new car sales and consumers increasingly willing to pay premium prices for safety and performance.

After more than a decade of producing only truck tyres in India and serving the passenger car segment through imports, Michelin is betting that the time is right to localise production. The company expects India’s premium passenger car tyre market to grow from 10-12 million units today to 17-18 million by 2030, driven by improving road infrastructure and evolving consumer preferences. With its first locally-made passenger car tyres – including the Primacy 5 and Pilot Sport ranges – expected to hit the market in the first half of 2026, Michelin is positioning India not just as a manufacturing base but as a centre of excellence for AI innovation, engineering talent and sustainable production across Africa, Middle East and beyond.

Last year, in September, Michelin had announced an investment of INR 5.64 billion in a brownfield expansion to produce passenger car radial tyres at its Chennai plant. Year-to-date, the company has already ramped up the figure to INR 6.86 billion, fuelled by its confidence in India’s passenger car market.

“We are bullish about India because of two major reasons. One is the transformation of the vehicle market itself, as last year, around 50 percent of new cars sold in India were SUVs. At the same time, road infrastructure is improving dramatically. That leads to the second factor that Indian consumers increasingly want bigger, safer cars with advanced safety features and they are willing to pay a premium for performance,” said Shantanu Deshpande, Managing Director at Michelin India.

Adding to Deshpande, Vitor Silva, President, Africa, India and Middle East (AIM), Michelin, said, “We see this as the perfect time for Michelin to complement that shift with tyres that deliver technology, safety, comfort and long-lasting performance. While we have been manufacturing truck tyres here for more than a decade, we will now also focus on passenger car tyres. Until now, we have been serving the segment largely through imports. But we believe the market dynamics have shifted and this is the right time to localise production.”

In line with this, the Chennai plant will also focus on premium passenger car tyres ranging from 16-inch to 22-inch sizes. According to Deshpande, the market is currently estimated at 10–12 million tyres and is expected to grow to 17–18 million by the end of the decade, making the investment not only timely but essential.

The plant will churn out its most advanced range – LTX Trail ST, Pilot Sport 4 SUV, Pilot Sport 5 and Primacy 5 tailored for the Indian market. The Michelin Primacy 5 will be the first tyre to roll out.

In the coming months, the tyres will undergo homologation and certification processes with BIS and other authorities. Once approved, the first Michelin passenger car tyres will be made available to Indian consumers. While no fixed deadline has been set, the commercial availability of these tyres is expected during the first half of the next year.

Michelin is structured into nine regions for business management purposes. Regarding India’s role in the wider region such as Africa, and the Middle East, operations have been designed to serve both as a production hub and a centre of excellence. The Indian facility will not only cater to domestic demand but will also strengthen Michelin’s position across the region through supply, innovation and talent development.

Its technology centre in Pune was described as one of the most important hubs for the group in the field of artificial intelligence (AI). In addition, strong capabilities in research and development, digital services, IT and corporate functions have been developed there.

India also has been positioned as a centre where talent is nurtured, contributing not only to Michelin globally but also to consumers worldwide through products designed locally.

“Tyres for North America and Europe have been designed in India and around a hundred AI proof-of-concept projects have been initiated, tested and are planned for eventual global deployment. The country is also a key source of raw materials for global operations. Michelin in India represents more than tyres, symbolising innovation, supply chain strength and talent development,” said Silva.

MANUFACTURING PROWESS

The Chennai plant, operational for 12 years, is among the most sustainable in India and globally of Michelin. It is a zero liquid discharge facility with 80 percent of water consumption recycled and 100 percent of waste reused.

By 2024, 45 percent of materials used to make tyres at the Chennai plant were renewable and recyclable, exceeding the global target of 50 percent by 2030. Forty-five percent of electricity comes from green sources, supported by infrastructure investments such as the 2022 solar facility.

AI is integrated into daily operations, analysing machine performance, monitoring quality and supporting decision-making. These tools are accessible to both engineers and frontline operators.

Currently, the plant’s installed capacity is 54,000 tonnes with flexibility maintained to align production with fluctuating demand as tyre weights vary from 7–8 kilogrammes for 16-inch tyres to 15–16 kilogrammes for 22-inch tyres. Inventory constraints prevent storing six months’ worth of tyres, requiring production and demand to be closely synchronised.

“At Michelin, we homologate products based on the conditions of each region. That means the tyres made and sold in India are essentially the same as those sold globally but validated to perform in Indian conditions. So rather than a separate India-only tyre line, we bring world-class products that are equally well-suited to Indian roads,” contended Silva.

Flexibility has been built into the production lines, allowing a mix of products to be manufactured on the same machines.

Primary focus is given to serving the local market as the industry was regarded as highly complex. While some volumes may be exported and others imported, priority is assigned to the Indian market.

When asked about the impact of starting passenger car tyre production on the OEM segment, Deshpande explained that several large truck manufacturers, including Ashoke Leyland, Volvo, Mercedes and Scania, are already being served.

Regarding the passenger car segment, the focus has been on the replacement market. While several imported cars including the Hyundai Ioniq and multiple Mercedes-Benz models already come equipped with Michelin tyres, OEM engagement in this segment is planned for the future, though replacement currently remains the priority.

Commenting on raw material procurement from India, Silva stated that India is also leveraged as a supplier of raw materials for Michelin’s global factories. Carbon black, natural rubber and chemicals are procured locally. This approach emphasises not only production and services from Pune but also the utilisation of India’s industrial ecosystem to support the company’s worldwide supply chain.

Specific materials sourced from India include carbon black, chemicals, steel and other items, all of which must meet Michelin’s strict quality and pricing standards.

“Beyond materials, India also contributes significantly in terms of engineering. At the Chennai plant, a dedicated engineering division has been established to develop machines for our global operations. Certain machines are designed and manufactured in India before being shipped worldwide. Additionally, specific components for global operations are already being produced in India,” said Florent Chaussade, Executive Director, Michelin Chennai.

RETAIL SCOPE

Deshpande emphasised that the company’s focus extends beyond production to transforming the consumer buying experience. A state-of-the-art experience shop was recently inaugurated in Nashik. Premium retail environments are being ensured through clean shops, ample parking, advanced equipment and well-informed staff capable of clearly communicating Michelin’s superior value.

To strengthen the retail network, the Michelin Tyre Service (MTS) network is being expanded. Seventy-five MTS outlets currently operate across India, primarily in metro cities, with plans to establish Michelin Tyre Stores as the benchmark for tyre retail experience nationwide.

On online sales, the company’s approach is two-fold. “Pure e-commerce retail remains negligible in India, but the research online, purchase offline trend is significant. Efforts have been made to ensure accurate digital presence, guiding consumers on suitable tyres,

availability and recommended outlets. This strategy is aimed at aligning the online-to-offline journey with the premium performance of our products, recognising that Indian consumers are tech-savvy yet accustomed to traditional purchasing,” divulged Deshpande.

To communicate safety, comfort and performance to price-sensitive consumers, Michelin has launched a dealer digital programme, enhancing dealers’ online presence to provide accurate brand and outlet information.

Inside outlets, experience shops display simple ‘reasons to believe’, demonstrating value propositions such as lower rolling resistance and superior braking performance. Dealers and technicians are continuously trained to deliver consistent performance, comfort and safety.

“The approach is ongoing and comprehensive, combining digital engagement, premium retail environments, interactive demonstrations and continuous skill development to elevate both the product and the overall ownership experience,” Deshpande added.

MARKET WATCH

The company’s truck and bus radial (TBR) business in India has evolved in recent years to target customers and fleets that value total cost of ownership (TCO). The strategy is centred on tubeless truck tyres, particularly energy-efficient models.

“Around 60 percent of a fleet’s operating cost is fuel, and our Multi Energy Z + tubeless tyres are reported to save 8–10 percent in fuel compared with traditional tube-type radials, directly benefiting the fleet’s bottom line,” contended Deshpande.

He added, “Although the segment remains relatively small, leading coach operators are already 100 percent tubeless. New-generation fleet owners increasingly prioritise TCO and are driving the transition. Demanding fleets such as Delhivery, which operates trucks 16–17 hours daily, covering 20,000 km per month, choose us for reduced downtime, fuel savings and extended tyre life. Other major clients include ITS, DGFC and Best Roadways. In 2022, the Chennai plant produced India’s first four-star rated energy-saving tyre, marking a national milestone.”

Regarding market share, only 10–12 percent of trucks currently run on tubeless tyres, while the rest remain tube-type, explained the executive.

On the two-wheeler front, Michelin already sells locally manufactured tyres through outsourcing arrangements. Fastest growth is observed in the over 350 cc motorcycle segment driven by higher disposable incomes and improved infrastructure, mirroring the SUV boom in passenger cars.

When asked about India’s potential global role amid geo-political shifts including trade barriers, tariffs and overcapacity in countries such as China, it was stated that Michelin’s vision is to operate local-to-local wherever possible.

“The tyre supply chain is highly interconnected with nearly 200 materials used in a single tyre, making it impossible to source everything from a single location. Efforts are focused on reducing raw material intensity, increasing the proportion of renewable inputs and minimising environmental impact through green factories and cleaner materials,” concluded Silva.

Michelin’s India strategy integrates local manufacturing, sustainable practices and advanced consumer engagement to build long-term value.

ATF Tyres Appoints Rajesh Vyas As Vice President Of Sales And Marketing

ATF Tyres Appoints Rajesh Vyas As Vice President Of Sales And Marketing

ATF Tyres, one of India’s leading manufacturers of off-highway tyres, has announced the appointment of Rajesh Vyas as its new Vice President of Sales and Marketing. Vyas brings over 25 years of global experience to the role, having worked across diverse international markets to build high-performance sales teams and enhance distribution networks.

His professional background includes leadership roles in brand positioning and product portfolio expansion within competitive sectors. Prior to joining ATF, Vyas served as Vice President at Rubber King Tyre Group. He also held key positions at Balkrishna Industries Limited as Head of Mining Tyres for India and spent a decade at Apollo Tyres Ltd as Business Head for Off-Highway Tyres.

With the company working to expand its footprint in the agricultural, industrial and OTR segments worldwide, Vyas’s strategic leadership and commercial insight are expected to support ATF Tyres in delivering performance-driven solutions across multiple regions.

Continental Intros ‘Nod Of Confidence’ Ambassador To Enhance Tyre-Buying Experience

Continental Intros ‘Nod Of Confidence’ Ambassador To Enhance Tyre-Buying Experience

Continental Tire has introduced a fresh and distinctive marketing figure known as the ‘Nod of Confidence’ ambassador to connect with drivers on a deeper level. This initiative is designed to encapsulate the precise moment a customer feels absolute certainty in their purchase decision, visually represented by a simple, affirming nod. It is a symbolic gesture that conveys the reassurance, trust and satisfaction associated with selecting a premium tyre brand.

For years, Continental has been regarded as the smart choice in the industry, a reputation built on a steadfast dedication to superior quality, advanced technology and dependable performance. The company consistently responds to market demands by engineering tyres that deliver exceptional comfort and peace of mind. Recognising that the process of buying tyres can often be complex and filled with uncertainty, this campaign targets the emotional journey of the consumer. It aims to capture that pivotal moment of clarity when a driver moves from questioning and comparing options to confidently confirming they have chosen the best solution for their vehicle and family.

This new ambassador is an extension of Continental's broader mission to simplify and enhance the tyre-buying experience. By blending cutting-edge tread innovations with customer-focused education and support, the brand continues to prioritise driver needs while reinforcing its leadership in the automotive industry.

Brian Beierwaltes, Head of Marketing US PLT, Continental Tire, said, “We understand that today’s consumers are looking for more than just a product, they’re looking for confidence. This creative idea brings our ‘Smart Choice in Tires’ philosophy to life in a simple, relatable way. That nod represents reassurance, expertise and the peace of mind that comes from selecting a brand that consistently delivers on performance, comfort and innovation.”

GRI Appoints Eldo Verhaagen To Lead Benelux Material Handling And Agriculture Operations

GRI Appoints Eldo Verhaagen To Lead Benelux Material Handling And Agriculture Operations

GRI, a leading producer of speciality tyres from Sri Lanka, has named Eldo Verhaagen as its new Sales & Operations Director for Material Handling and Agriculture across the Benelux region. This strategic move underscores the company’s drive to enhance its regional footprint by reinforcing leadership, improving operational efficiency and strengthening relationships with local customers. Verhaagen’s arrival marks a continued push to expand GRI’s presence in both the material handling and agricultural sectors.

With extensive experience in the tyre and automotive fields, Verhaagen brings a proven background in guiding strategy, boosting commercial performance and refining operational processes. His familiarity with a broad range of tyre types – including those used in trucking, farming, construction and material handling – combined with a direct, customer-oriented working style, makes him well-suited to steer the region through its upcoming growth phase.

Verhaagen takes over from Herman Klumpenaar, whom GRI has thanked for his dedicated leadership and smooth handling of the leadership transition. The Benelux team is now set to collaborate closely with Verhaagen, aiming to sustain regional progress and ensure long-term, steady development.

Giorgio Gramegna, Director of Europe – Sales, Marketing and Distribution at GRI, said, “We thank Herman for his leadership and contribution over the years. We are pleased to welcome Eldo and are confident that his experience and market knowledge will further strengthen our presence and performance in the Benelux region.”

Goodyear Launches ‘The Vault’ Online Marketplace

Goodyear Launches ‘The Vault’ Online Marketplace

Goodyear has unveiled The Vault, an innovative online marketplace designed to transform how the public interacts with its brand and 128-year heritage. This digital destination allows visitors to explore and acquire a thoughtfully assembled selection of historic artifacts, autographed collectibles, special-edition products and extraordinary experiences. Serving both as a platform for collectors and a dynamic archive, The Vault merges significant items from Goodyear's past with contemporary cultural partnerships and exclusive new merchandise.

The collection features compelling pieces such as a segment of the engine from the legendary Spirit of America Goodyear Blimp, one of the company's earliest tyres produced in 1899, tyres raced at the 2025 NASCAR Cup Series Championship and celebrity-signed goods. To celebrate the launch, a limited-time digital puzzle is being offered. Participants who successfully solve the riddle on the company website will be entered to receive one of 30 cryptex vaults filled with exclusive prizes. These rewards range from branded merchandise to the premier prize: a private flight on the famous Goodyear Blimp. The Vault is currently accessible, with plans to release new items and opportunities throughout the coming year.

Doug Grassian, Vice President, Global External Communications, Social Media and Partnerships, said, "There's nowhere else on the planet that you can buy a section of a Goodyear Blimp engine or one of the first tyres ever made. By opening The Vault, Goodyear is transforming its legacy into something tangible, collectible and meaningful."