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.”

South Korean tyre major Nexen Tire has added another feather to its cap and has received a Gold rating from EcoVadis for the second year in succession. This places the company among the top 3 percent of over 150,000 companies assessed globally.

Established in 2007 in France, EcoVadis evaluates corporate sustainability performance across Environment, Labour & Human Rights, Ethics and Sustainable Procurement. Its ratings are Platinum (top 1 percent), Gold (top 5 percent), Silver (top 15 percent) and Bronze (top 35 percent).

Nexen Tire showed improvements across all assessment areas. In the Environment category, the company's involvement in global sustainability initiatives, including the Global Platform for Sustainable Natural Rubber (GPSNR), the UN Global Compact (UNGC) and the Science Based Targets initiative (SBTi) was noted. Climate education programmes and greenhouse gas emissions disclosure were contributors.

For Labour & Human Rights, Nexen Tire's human rights policy aligns with international standards from the United Nations and the International Labour Organization (ILO). The company also began human rights assessments for risk management.

In the Ethics pillar, the company reinforced internal systems for risk prevention, monitoring, and mitigation. The Sustainable Procurement score improved through ESG assessments, supplier audits and risk response strategies.

John Bosco (Hyeon Suk) Kim, CEO, Nexen Tire, said, “Receiving the Gold rating from EcoVadis for the second consecutive year is a significant affirmation of our global ESG efforts. We remain committed to responsible and transparent management practices that meet the expectations of our stakeholders worldwide.”

TÜV SÜD AG’s Supervisory Board has named Ishan Palit as Interim CEO (Chairman of the Board of Management) effective 15 July 2025, following Dr Johannes Bussmann’s departure to assume the CEO role at MTU Aero Engines AG. Bussmann will leave TÜV SÜD on 14 July 2025. Palit will co-lead the company with CFO Sabine Nitzsche until a permanent successor is appointed.

With over 30 years at TÜV SÜD, Palit has held key leadership roles, including establishing the company’s India operations, serving as Asia Pacific CEO and leading the global Product Service Division. Since 2017, he has been Chief Operating Officer, driving strategic and operational initiatives.

Nitzsche, who joined as CFO in March 2025, brings extensive financial and executive expertise from the high-tech and automotive sectors. Her prior roles include CFO of Vitesco Technologies AG and senior financial leadership positions at Infineon Technologies and GlobalFoundries.

Frank Hyldmar, Chairman of the Supervisory Board of TÜV SÜD AG, said, “We are very pleased that Ishan and Sabine will oversee the interim management of TÜV SÜD during this transition. Ishan is a seasoned TÜV SÜD senior executive with deep knowledge of our business and strong global leadership experience. Sabine brings a proven track record as CFO across multiple multinational enterprises. Together, they form a strong leadership team as we work towards appointing a long-term CEO.”

Hankook Tire & Technology has announced a series of executive leadership changes at its North American headquarters in Nashville, reinforcing its commitment to growth in passenger and commercial tyre markets. The restructuring brings fresh leadership across key sales and marketing functions.

Kyuwang (Ken) Cho assumes the role of Senior Vice President of North America Marketing, transitioning from his previous dual leadership of PC/LT Sales and Marketing. The industry veteran brings 25 years of Hankook experience, including a stint as Vice President of Global Sales in Korea. K C Jensen steps up as Vice President of US PC/LT Sales, expanding his responsibilities from regional to national oversight after demonstrating strong leadership in the Western market since 2018.

The company welcomes back Mark Roe as Vice President of US TBR Sales, where his four decades of commercial tyre expertise will guide replacement and OE sales strategies. Roe's extensive background includes previous leadership roles at Hankook and most recently at Ralson Tire North America.

Regional sales teams also see strategic promotions. Shaun Prott advances to Regional Director of PC/LT Sales for the West, building on his eight-year tenure with Hankook and prior experience with National Tire Warehouse. Travis Jones rejoins the organisation as Northeast Regional Director, bringing valuable perspective from Michelin and Pirelli. Brian Ford earns promotion to Regional Director of TBR Sales for the West after successfully managing key commercial accounts since 2021.

Rob Williams, President of Hankook Tire America Corp, said, "These leadership appointments reflect Hankook's strong momentum in North America. Ken, K.C. and Mark each bring exceptional industry experience, strategic focus and leadership qualities to their roles. Together, they will help elevate our presence across both consumer and commercial channels, and support our long-term growth ambitions in the US. These moves speak to the strength of our internal talent pipeline & ability to attract top talent and our continued investment in customer relationships. Shaun, Travis and Brian all bring deep knowledge of their markets and proven ability to grow key partnerships."

French tyre major Michelin has introduced its new X Line Grip D range, which is designed to work up to 1 million miles (1.6 million kilometres) with up to four retreads. The company shared its designers' claim that this is a ‘once-in-a-lifetime’ leap in tyre technology for fleets.

In addition to the higher range, the tyres also provide 20 percent more mileage and a 20 percent reduction in rolling resistance compared to the Michelin XDN2 tyre.

Designed to meet both wet and snowy conditions thanks to the chevron tread design, these tyres are said to prove 90 percent better starting traction in snow and over 25 percent better wet starting traction.

Fleets also benefit from using the Michelin X Line Grip D tyre, as it is built on the company’s Duracore casing, featuring Infinicoil and Powercoil technologies. 

Pierluigi Cumo, VP – B2B Marketing, Michelin North America, said, “Michelin is never satisfied with current tyre technology when it comes to constantly improving and innovating our products. That’s why Michelin is so proud to introduce the Michelin X Line Grip D tyre. This tyre has the potential going forward to redefine the drive tyre standard in fleets for years to come. It is not an evolution to existing products, but something entirely different the fleet world has never seen before.”

“Michelin has a proven track record of delivering high-quality, reliable products that exceed performance expectations. This fantastic leap in drive tyre technology bring new levels of performance to the road and new levels of savings to our customers,” he concluded.

The Michelin X Line Grip D tyre is available in sizes 295/75R22.5 and 11R22.5.