(from left ) Victor Silva, President, Michelin Africa, India and Middle East Region; Shantanu Deshpande, MD, Michelin India, and Jean-François Rene, Executive Director, Michelin Chennai
French tyre-maker Michelin sees India emerging as a key manufacturing and technology hub for its global operations, with its Chennai plant set to cater to both domestic demand and overseas markets in future, as production ramps up.Victor Silva, President, Michelin - Africa, India and Middle East, said the decision to manufacture passenger car tyres in India is driven by the company’s long-term strategy rather than production costs. The company is strengthening its long-term commitment to India by expanding local manufacturing to cater to the country’s fast-growing premium passenger vehicle segment, he said. Michelin commercially launched its first passenger car tyre manufactured at its Chennai plant on Monday.“The reason for us to produce in India is not just on cost. Initially, the tyre will actually be slightly more expensive for us to manufacture because of the investments that have gone into the new facility. But the price for consumers will not change. Our pricing is based on the value the product delivers, not where it is manufactured,” Silva said.He said the move reflects Michelin’s “local-to-local” strategy of manufacturing products closer to key markets while leveraging India as an important production base.Rapid premiumisationShantanu Deshpande, Managing Director, Michelin India, said the company is responding to India’s rapid premiumisation in mobility, with consumers increasingly opting for larger SUVs and demanding higher standards of safety, comfort and performance.He said Michelin has fulfilled a commitment made around 18 months ago to localise passenger car tyre production. The company will initially manufacture tyres in 16-inch to 22-inch sizes, focusing on the premium replacement market before expanding supplies to original equipment (OE) manufacturers.Jean-François Rene, Executive Director, Michelin Chennai, said passenger car tyre production at the Chennai facility commenced in June after a year-long installation and commissioning process. The plant uses the same machinery, raw materials and quality standards as Michelin’s global manufacturing facilities, he added.While the immediate priority is meeting domestic demand, the facility will also support exports to Africa, West Asia, North America and Europe as production expands, Rene said.Depending on its size, the price starts from ₹10,000, said a company official.Michelin entered India with an investment of ₹2,800 crore in its Chennai manufacturing facility in 2009, with truck and bus tyre production becoming commercially available in 2014. The company later invested an additional ₹686 crore (€76 million) in a passenger car tyre production line as part of its expansion in India.Executives declined to disclose expected sales volumes.Published on August 3, 2026
