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.”

JK Tyre & Industries is aiming for double-digit revenue growth in FY2026, outpacing its forecast for single-digit expansion across the broader tyre industry. Managing Director Anshuman Singhania outlined the company’s ambitions during a post-earnings media call, underscoring confidence in demand recovery and strategic market positioning.

Q1 Performance Overview

For the first quarter of FY2026, JK Tyre reported revenue of INR 38.91 billion, with EBITDA at INR 4.24 billion, translating to a margin of 10 percent. Net profit stood at ₹1.55 billion — up 51 percent compared with the previous quarter, but down 21 percent YoY.

Singhania attributed the annual decline to muted original equipment (OE) demand, particularly in truck and bus radial (TBR) volumes, alongside higher raw material costs compared to the same period last year. He also highlighted an adverse impact from the company’s Tornel business in Mexico, which faced uncertainty due to tariffs on exports from Mexico to the United States, dampening volumes.

Resilience in Domestic and Export Markets

Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said, “The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11 percent YoY, as contributed by a steady demand for our products in both replacement as well as OE segments, underscoring JK Tyre’s continued focus on core growth drivers and strengthening market presence.”

“Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed a strong traction both on QoQ and YoY basis, signifying pull for our products and enhanced brand perception in the global markets,” said Dr Singhania.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Operational efficiencies and strategic pricing supported performance, even as natural rubber prices remained elevated. Subsidiaries Cavendish (India) and Tornel (Mexico) continued to contribute significantly to the group’s consolidated financials.

Regarding trade tensions between India and the US, Anshuman Singhania noted that exports from India to the US account for only around 3 percent of JK Tyre’s revenue and could be redirected to markets such as Mexico, Latin America, Brazil and the UAE if required. With zero tariffs in Mexico, JK Tyre can utilise its production base there to meet demand for both passenger and truck radials. The EU and UK, where JK Tyre holds a strong position in the TBR segment, also remain tariff-free.

Capacity expansion

The company’s INR 14 billion capital expenditure plan is progressing on schedule, covering passenger car radial (PCR), TBR and all-steel truck radial projects. For the year, investment is expected to total INR 9-10 billion, aimed at boosting production capacity by 30-40 percent.

A key driver for future profitability is the shift towards premium products. The share of 16-inch and above passenger car tyres in JK Tyre’s portfolio has grown from 18 percent in FY2020 to 25 percent in FY2025, with a target of 40-45 percent over the next two to three years. This change is being fuelled by rising SUV sales, larger rim sizes in entry-level cars and strong export demand.

The company has also developed a complete range of tyres for electric vehicles, spanning commercial truck radials, bus tyres, passenger radials and two/three-wheeler tyres  Major OEMs such as Ashok Leyland’s Switch Mobility and Tata Motors are sourcing these products, including for last-mile connectivity vehicles and newly launched EV buses.

Market Outlook

The replacement market has been a bright spot, with passenger radial volumes up 32 percent year-on-year and truck radial volumes growing in the high single digits. JK Tyre expects demand to strengthen in the second half of FY2026, supported by infrastructure development, a favourable monsoon, potential interest rate cuts, and improved consumer liquidity.

Anshuman Singhania stressed that the worst of raw material price pressures appear to be over, paving the way for margin improvement as the product mix shifts and capacity utilisation rises. With the small car segment’s gradual decline offset by growth in premium categories, JK Tyre remains confident in sustaining momentum.

“Overall, India is poised for growth,” Singhania concluded. “We see positives across the board — from infrastructure push to evolving consumer preferences — and we are well-positioned to capitalise on these trends.”

Yokohama Rubber has begun supplying its ADVAN V61 tyres as original equipment for BYD’s new SEALION 6 DM-i SUV, marking the Japanese manufacturer’s first OE partnership with the Chinese carmaker.

The SEALION 6 DM-i, a plug-in hybrid SUV launched by BYD Company Ltd. this July, is being factory-fitted with 235/50R19 103V size ADVAN V61 tyres. The announcement comes as Yokohama seeks to grow its footprint in China’s fast-evolving electric and hybrid vehicle market.

The ADVAN V61 is part of Yokohama’s global flagship ADVAN range and is positioned as a premium SUV tyre. The company said the tyre “offers ADVAN’s hallmark premium-grade driving performance, along with a high-level balance of fuel and energy efficiency, handling stability, and quietness, achieving both comfortable city driving and long-distance touring for heavyweight SUVs.”

The SEALION 6 DM-i combines a 1.5-litre naturally aspirated petrol engine producing up to 74kW with an electric motor generating 160kW. Buyers can choose between 18.3 kWh and 26.6 kWh blade battery options, offering electric driving ranges of 93km and 130km, respectively. All models come equipped with advanced driver assistance systems as standard, and the exterior design draws inspiration from the concept of “ocean aesthetics.”

Sumitomo Rubber Industries Ltd said its subsidiary Dunlop Tyre Japan Ltd has completed a Japan Fair Trade Commission investigation into automotive all-season tyre sales after the regulator approved a commitment plan submitted by the unit.

The probe, which examined the subsidiary’s sales practices, concluded without the commission identifying any violation of Japan’s Antimonopoly Act, Sumitomo Rubber said in a statement.

Under Japan’s commitment procedures, companies can submit plans to address potential competition concerns without admitting wrongdoing, allowing them to resolve investigations while avoiding formal sanctions.

"We deeply apologise for the great trouble and anxiety that we have caused to all concerned, including our clients and business partners,” the tyre maker said.

Belgian steel wire maker Bekaert reported resilient first-half 2025 earnings as strong cash generation and cost control offset softer sales, but warned that tariffs and currency pressures are weighing on demand.

The company posted consolidated sales of €1.9 billion, down 5.2 percent year-on-year, with volumes declining 2.6 percent and price/mix effects stripping out a further 2.2 percent. Underlying EBIT slipped 16.2 percent to €171 million, delivering a margin of 8.8 percent compared with 9.9 percent a year earlier.

Free cash flow surged to €123 million from €43 million in the prior-year period, driven by a €135 million reduction in working capital and €21 million in cost savings as the company continued to streamline operations and rein in capex. Net debt fell to €327 million from €399 million despite a continuing €200 million share buyback programme, €74 million of which has been completed.

“We have continued to focus on what we can control best – cash flow and costs - and have significantly reduced overheads and working capital in H1 2025,” chief executive Yves Kerstens said. “Equally, I am very pleased with the hard work of our teams fighting for volumes in the current challenging markets.”

He added: “We are also taking further steps to make our business units more autonomous and agile. Therefore, I am very confident that we will come out of the current business environment stronger and more cost competitive than ever before.”

Bekaert said volumes were particularly strong in its Steel Wire Solutions and Rubber Reinforcement divisions in the United States and China, while European and Latin American demand lagged. Its Brazilian joint ventures delivered €24 million in net profit share, up from €20 million a year ago.

However, the group cautioned that growing trade tensions – including a rise in US steel tariffs from 25 percent to 50 percent – and the weakening of the US dollar and Chinese yuan against the euro were eroding pricing power and softening orders.

“Following a period of resilience in Q2, the tariff uncertainty and weakening economic outlook has started to have an impact on demand,” Bekaert said.

The company now expects slightly lower full-year 2025 sales on a like-for-like basis, with an underlying EBIT margin of between 8.0 percent and 8.5 percent, down from 8.8 percent in the first half.