Michelin has rolled out its first made-in-India premium passenger car tyre from its Chennai facility, marking a key milestone in its localisation strategy. Commercial availability is expected across India by the first half of 2026, targeting the fast-growing premium car segment.
A Strategic Investment Push
In September 2024, Michelin announced an investment of 564 crore rupees (€65 million) to establish passenger car tyre production in India. An additional 100 crore rupees was allocated for the next phase, taking the total to 686 crore rupees (€76 million), in addition to the 2,800+ crore rupees already invested in the Chennai plant.
The new line will produce premium tyres between 16 and 22 inches, catering to vehicles such as SUVs and high-end passenger cars. Models like the Primacy 5, Pilot Sport 5, Pilot Sport 4 SUV, and LTX Trail ST will be manufactured locally, with the Primacy 5 being the first to roll out.
Aligning with India’s Premium Car Growth
India’s passenger vehicle market is rapidly expanding. SUVs already account for over 50% of sales in FY24 and FY25, supported by better road infrastructure, higher disposable incomes, and shifting consumer preferences. The market, valued at USD 18.13 billion in 2024, is projected to reach USD 33.85 billion by 2030, growing at a CAGR of nearly 11 per cent. Michelin sees this premiumisation trend as a strong foundation for localisation.
Expanding Retail and Enhancing Experience
To support the rollout, Michelin has strengthened its retail presence across the country. The company currently operates 75 standalone Michelin Tyres & Service outlets and has introduced its first Michelin Experience Store in Nashik. These initiatives aim to make premium tyres more accessible while enhancing consumer engagement.
A High-Tech, Sustainable Manufacturing Base
Michelin’s Chennai facility integrates sustainability and automation. It features zero liquid discharge, 100 per cent recycling, zero carbon footprint, and uses rainwater harvesting for 80 per cent of its water needs, along with 45 per cent renewable energy usage.
The new passenger tyre line spans 22,000 sq. m and is among the most automated in India. Extensive robotics allow the plant to operate with around 200 employees, compared to the industry standard of 500 for similar capacity. Michelin also conducted 50,000 hours of employee training in international plants to support the rapid scale-up.
