Michelin India is doubling down on the country’s fast-growing premium tyre segment, a niche yet rapidly expanding market. The company, which has been manufacturing radial commercial tyres at its Chennai plant, is now investing over INR 5.64 billion in a brownfield expansion to produce passenger car radial tyres at the same facility.

Today, Michelin India is not just a manufacturing hub but also a critical part of the global Michelin ecosystem, housing the company’s world AI headquarters and a state-of-the-art R&D centre, growing from a modest operation with fewer than 100 employees to a total workforce of nearly 3,000.

In an exclusive interview with Tyre Trends, Shantanu Deshpande, Managing Director, Michelin India, touches upon the company’s strategic priorities, the evolving tyre industry and its ambitious plans for the premium and electric vehicle (EV) segments.

He also sheds light on Michelin’s sustainability initiatives and how the company is leveraging India’s growing infrastructure and consumer preferences to solidify its position as a market leader in the premium segment.  The premium proposition:

Catering to discerning consumers

When Michelin first entered the Indian market, it was a niche player with a limited presence. The company’s initial focus was on introducing radial tyres to a market dominated by bias tyres. Over the years, Michelin has not only expanded its manufacturing footprint but also cemented its position as a leader in the premium tyre commercial tyre segment. 

“We started with TBR tyres (Truck and Bus Radial) over a decade ago,” Deshpande recalls. “Back then, the industry was dominated by bias tyres. Today, radial tyres account for almost 70 to 80 percent of the market, and we’re now seeing a shift from tube-type to tubeless tyres. This transformation has been driven by infrastructure improvements and the rise of e-commerce, which demands faster, more efficient logistics.” 

Currently, tubeless tyres have a 5-10 percent market share, while tube tyres own the rest.

Deshpande highlights the dramatic changes in India’s road infrastructure as a key driver of this evolution. “When I was a sales executive, the Delhi-Mumbai corridor took eight days to traverse. By the end of this year, it will take just 24 hours. Truck speeds have increased from 25-30 km/h to 40-50 km/h, and soon, they’ll reach 60 km/h, comparable to Europe. These changes have created a demand for high-performance tyres that can handle heavy loads and long distances,” he explains.

The rise of e-commerce has further accelerated this demand. “Some fleets are running 25,000 kilometres per month,” Deshpande notes. “This is a significant distance for trucks, and it underscores the need for tyres that offer durability, fuel efficiency and safety.” 

Michelin’s focus on premium tyres has been a cornerstone of its strategy in India. Deshpande emphasises that the company’s value proposition lies in offering a lower total cost of ownership (TCO) for fleet operators, particularly in the TBR segment. 

“Fuel accounts for 60 percent of a truck operator’s costs,” he explains. “Michelin intends to work with like-minded fleet operators who understand the value proposition of TCO. We are changing their tube radial tyres to tubeless radial tyres. For instance, our X Multi Energy Z+ tyre, with the lowest rolling resistance in the country, can save up to 15 percent on fuel compared to traditional tubeless radial tyres. This is a game-changer for fleet operators who understand the importance of TCO.”

Cost per kilometre Vs total cost of ownership

Deshpande elaborates on Michelin’s approach to cost per kilometre (CPK) and total cost of ownership (TCO), which are critical metrics for fleet operators.

“Cost per kilometre is one way to simplify invoicing, but it’s not the complete picture,” he explains. “While CPK focuses on the life of the tyre, we believe in a broader approach – total cost of ownership. A Michelin tyre not only lasts longer but also saves fuel, which is a significant cost for fleet operators. It’s important to look at the overall savings, not just the tyre’s lifespan.”

Michelin offers innovative service models to fleet operators, including on-site maintenance and diagnostics. “We have models where technicians are stationed at fleet yards,” Deshpande says. “We provide free diagnostics to identify issues like under-inflated or misaligned tyres, which can significantly impact costs. We then offer maintenance services to ensure optimal performance, and this is a paid service – it’s not free. We work with fleets to show them the cost savings we can bring per-truck, per-month basis.”

The company also invests in equipment like tyre fitting and alignment machines at fleet yards. “We bear these costs into our service offerings,” Deshpande adds.

Premium passenger radial tyres: New target

In the passenger vehicle segment, Michelin is targeting the growing demand for premium and luxury cars.

In September 2024, Michelin India entered the passenger car radial tyre market with the launch of an INR 5.64-billion brownfield project in Thervoy kandigai, near Chennai. “This investment is over and above the existing investment of INR 28.40 billion for the company in our factory,” adds Deshpande

“We believe there is significant potential in the passenger segment for several reasons. Over the last three years, the vehicle landscape in India has significantly changed,” Deshpande says. “Today, most new SUVs and cars are being launched with bigger tyre sizes, such as 16-inch or 17-inch. This shift aligns perfectly with our focus on premium tyres.”

According to Deshpande, the shift towards premium products extends beyond automobiles. “There is a growing demand for premium products across all walks of life, not just automobiles. This includes two-wheelers, luxury bags and other high-end items. Consumers are willing to pay for quality,” adds Deshpande.

Deshpande points to the changing profile of Indian consumers as a key factor driving this trend. “The Indian consumer is evolving,” he says. “Ten years ago, a Mercedes owner was typically an industrialist or a Bollywood star. Today, young professionals in their 30s are driving BMWs and Mercedes. Last year, close to 50,000 cars priced above INR 50 lakh were sold in India, and we expect this number to double soon.” 

Improved road infrastructure has revolutionised leisure travel habits. “10 to 15 years ago, travelling from Mumbai to Delhi by car was uncommon. It’s possible to drive from Mumbai to Nagpur in eight hours today,” Deshpande said. “People now prefer driving long distances rather than flying, which has significantly changed how consumers view their cars.”

Michelin’s Chennai plant is strategically focused on producing tyres for this premium segment. “We will soon begin manufacturing car tyres in India. The size range will be 16” and above,” Deshpande says. “Our goal is to cater to the top 25-30 percent of consumers who value quality and are willing to pay for it.”

The company’s retail distribution strategy is equally focused on maintaining a premium experience. “A Michelin customer, such as a BMW owner, expects nothing less than a premium experience,” Deshpande explains. “We’re not aiming for a vast network of dealers. Instead, we’re focusing on well-branded shops that offer a superior consumer experience.” 

The company plans to open its premium retail shops for passenger car tyres in the top 15 to 20 cities to cater to the replacement market.

The EV opportunity: Balancing performance and sustainability

As the automotive industry shifts towards electrification, Michelin is positioning itself as a leader in EV tyres, and Deshpande also acknowledges the unique challenges and opportunities this transition presents. 

“EV tyres require specific designs, such as low rolling resistance and larger diameters,” he explains. “But it’s not just about range. Load-carrying capacity, noise reduction and durability are equally important. Michelin has mastered the art of balancing these performance criteria.” 

Deshpande dispels the misconception that EV tyres are fundamentally different from those used in internal combustion engine (ICE) vehicles. “Some of our tyres are excellent for ICE vehicles but even better for EVs,” he says. “We don’t design tyres purely for range. Instead, we ensure they deliver the right balance of performance, safety and comfort.” 

Michelin’s approach to EV tyres is already yielding results. “The tyres we’ve designed for ICE vehicles are being adopted by EV manufacturers globally,” Deshpande reveals. “In India, as the EV market grows, we’ll leverage our global expertise to cater to this segment.” 

Sustainability at the core

Sustainability is a key pillar of Michelin’s strategy, both globally and in India. The company’s Chennai plant is a zero-discharge facility that recycles all its water through rainwater harvesting. By the end of this year, the plant will be powered entirely by renewable energy. 

Deshpande asserts,” Our Chennai plant is one of the most high-tech and green facilities in the Michelin world. It’s a benchmark for safety, modernity and environmental responsibility.” 

The tyres manufactured in Chennai are exported to North America, Europe, Africa and the Middle East.

Michelin’s commitment to sustainability extends beyond its manufacturing processes. The company also focuses on developing tyres that increase fuel efficiency and reduce emissions. “Our X Multi Energy tyre, for instance, has a rolling resistance of just 4.5 kg per tonne, compared to the industry average of 6.5-7 kg per tonne,” Deshpande says. “This translates to significant fuel savings and a lower carbon footprint.” 

Premium two-wheeler segment: Another growing opportunity

Michelin India continues its presence in the two-wheeler tyre segment through a manufacturing arrangement with STL (Spinmax tyres Pvt Ltd) via an offtake arrangement.

Despite current import restrictions, the company eyes opportunities in India’s evolving motorcycle market.

“The two-wheeler segment is undergoing significant transformation,” says the Managing Director of Michelin India. “With the increasing launch of high-powered bikes like Royal Enfield and other global brands, along with Indian manufacturers producing world-class bikes for export, this segment presents a great opportunity.”

The company sees a natural overlap between its target markets. “The profile of consumers buying high-powered bikes often overlaps with those buying premium cars,” Deshpande thinks. Michelin plans to focus on motorcycles and scooters of 250 cc and above, where the company believes its brand visibility and value proposition are strongest.

The strategy mirrors Michelin’s approach in the passenger vehicle segment. The company maintains local outsourced manufacturing of two-wheeler tyres while exploring future expansion opportunities.

The French tyre maker continues to evaluate opportunities in India’s growing premium two-wheeler market as domestic manufacturers increasingly target global markets with higher-end models.

Michelin India: A place for global R&D & AI Centre

In addition to Michelin India’s manufacturing capabilities, it has also established a Global Hub in Pune focusing on next-generation technologies such as AI, data engineering, digital services and R&D centre, which supports research efforts for the Michelin Group worldwide.

Deshpande is also optimistic about the role of Indian R&D in Michelin’s global operations. “Our Pune centre is not just supporting India; it’s contributing to global markets,” he says. “The talent here is recognised for its innovation and expertise, not just cost arbitrage. At our Global Competency Center in the city, the company isn’t just optimising tyres but redefining how they’re designed, manufactured and used. This is a proud moment for us.”

As Deshpande puts it, “Michelin is not just selling tyres; we’re selling safety, comfort and peace of mind. In a market as dynamic as India, that’s a value proposition that resonates.”

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MAXAM Tire has named Chris Rhoades as its new Zone Sales Director for the Northern region, a move that underscores the company’s dedication to expanding its footprint and enhancing customer service within the speciality tyre aftermarket. The appointment reflects a broader strategy to strengthen leadership and competitive positioning in the sector.

Rhoades brings over 25 years of international industry experience and a well-established reputation as a leading voice in the tyre business. His leadership credentials include being elected to two separate terms on the Tire Industry Association Board of Directors. Most recently at BKT Tires, he managed strategic growth in complex and highly technical off the road markets, where he aligned regional execution with global strategy, led cross functional teams and consistently delivered measurable revenue increases.

In his new capacity, Rhoades will direct all sales operations across the Northern region, collaborating closely with customers and partners to ensure performance, service and support remain synonymous with the MAXAM Tire brand. His appointment signals a focused effort to drive results through experienced leadership and deep market knowledge.

Jimmy McDonnell, Vice President – Sales and Marketing, MAXAM Tire, said, “We are excited to welcome Chris to the MAXAM team. Chris brings deep industry knowledge, proven leadership and a strong customer-first mindset that will create immediate value for our partners. His experience and vision will play an important role as we continue to grow our presence, strengthen relationships and expend the MAXAM brand across the market.”

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Bekaert’s Board of Directors has announced the appointment of Olivier Biebuyck as the company’s next Chief Executive Officer, effective 1 June 2026. He brings extensive expertise in leading, expanding and transforming global industrial enterprises through both organic growth and acquisitions, positioning him to drive Bekaert’s future strategic goals.

On that same date, the board will co-opt Biebuyck as a director. Meanwhile, current CEO and board member Yves Kerstens will conclude his mandate on 31 May 2026, having led the company in recent years. He will also step down from his directorship as of that day.

The leadership transition marks a carefully planned succession, with Biebuyck’s track record seen as critical to advancing Bekaert’s long-term ambitions. The changes take effect at the end of May and start of June 2026.

Jürgen Tinggren, Chairman of the Board of Directors, said, “I am proud to announce the appointment of Olivier Biebuyck as CEO of Bekaert. The Board is convinced that he is the right person to lead the transformation of the company in its next chapter. On behalf of the Board and the entire Bekaert team, I would like to express our sincere appreciation to Yves for his leadership, commitment and contribution to the company over the past years, and wish him the very best.”

Biebuyck said, “Bekaert has an impressive history of innovation, business expansion and evolution. I am honoured to take up the role of CEO at Bekaert. I look forward to working closely with the Board, the leadership team and all colleagues around the world to further transform and grow the company and create long term value for all our stakeholders.”

Kerstens said, “It has been a privilege to serve as CEO of Bekaert and to work alongside our colleagues around the world during the past years. I am proud of what we have achieved together and wish Olivier all the best to lead the company in building a strong future.”

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Sri Lanka-based GRI Tires has extended its limited warranty coverage for pneumatic tyres to up to 10 years, effective from 2026, as the specialty tyre manufacturer seeks to strengthen customer assurance across its agricultural, construction and material handling businesses.

The revised warranty policy applies to all GRI-branded pneumatic tyres manufactured on or after January 1, 2025, and covers customers in more than 80 countries. The company previously offered warranty coverage of up to seven years.

Under the updated policy, agricultural radial tyres will be covered for up to 10 years, while agricultural bias tyres will receive coverage of up to eight years. Construction, earthmover, industrial, material handling, port and mining tyres will be covered for up to five years, subject to terms and conditions.

GRI said warranty protection would cover qualifying defects, with credit issued on a pro-rated basis.

For qualifying failures occurring within the first three years, and where radial tyre wear does not exceed 20 per cent, customers will receive a full replacement credit.

The warranty applies exclusively to the original end-use purchaser.

“This enhanced 10-year warranty is more than a policy update — it is a statement of our conviction in the quality of every tire we manufacture,” said Barry Guildford, global commercial director at GRI.

“We build tires to perform in the most demanding conditions, and we stand behind them.”

Customers can submit warranty claims through authorised GRI dealers and distributors, or directly through the company’s customer support channels.

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Georg Nordmann Holding Aktiengesellschaft (GNH) has appointed Martin Rathke as Managing Director of its subsidiary Nordmann (Nordmann, Rassmann GmbH), effective 1 May 2026. The move marks a strategic step in the company’s ongoing leadership development.

Rathke joins with considerable leadership experience and deep knowledge of international sales and distribution within the chemical distribution sector. His career includes years of service in a family-owned enterprise, where he held senior management roles with global responsibility. He will now share leadership duties with Ulrich Cramer, who remains in his position, and together they aim to form a closely aligned team to advance Nordmann’s strategic direction.

The joint leadership will focus on accelerating global expansion through targeted strategic, organic and inorganic growth while optimising existing operations and continuously refining the company’s portfolio strategy. Backed by the commitment of its shareholders, Nordmann seeks to strengthen its international presence and evolve into a global player in the chemical distribution industry.

Irina Zschaler, CEO of Georg Nordmann Holding Aktiengesellschaft, said, “Martin brings exactly the combination of entrepreneurial mindset, international experience and leadership strength that we value in our relationships and for our path to grow. Our collaboration is based on responsibility, integrity and the aspiration to create added value together for all involved and the entire group. We are therefore very much looking forward to welcoming our full Nordmann team.”

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