Michelin Drives Forward with Indian Expansion Amid Tire Import Challenges

Michelin is working to continue importing passenger vehicle tires into India while it ramps up production at its new Chennai plant. The company is in talks with the Indian government to extend import licenses and plans a significant investment in local manufacturing, amid new opportunities and competition.

French tire giant Michelin is negotiating with the Indian government to continue importing passenger vehicle tires as it prepares to boost production at its upcoming Chennai facility, according to its CEO, Florent Menegaux. The plant, with a planned investment of Rs 564 crore, is expected to begin production later this year, scaling up over the next few years.

The talks come amid import restrictions imposed by India in 2020 to encourage domestic manufacturing. Michelin, already producing truck and bus tires in India, aims to grow its presence in the market by leveraging local production capabilities. The global tire manufacturer had intake discussions to extend its import license to support faster growth until local production meets demand.

Michelin sees India as a critical market, given its infrastructure growth and competitive landscape. The company employs over 1.3 lakh people globally and produced about 200 million tires last year. Michelin is also part of a NASA project to develop lunar vehicle tires, highlighting its commitment to innovation and sustainability.

(With inputs from agencies.)