Here’s a write-up on Michelin’s launch of its first Made-in-India car tyres — why it matters, what the plan is, and the challenges ahead.
Introduction: A New Chapter for Michelin in India
On 30 September 2025, Michelin unveiled its first passenger-vehicle tyres manufactured in India, marking a significant step in its localisation strategy. Until now, Michelin had largely relied on imports to serve India’s passenger car tyre (PCR) market, even though it already manufactured truck and bus tyres locally.
The initial units rolled out from Michelin’s Chennai plant, with a formal market launch expected in the first half of 2026. Michelin has stated that the first model to be built locally will be Primacy 5, and that the production range will also include its Pilot Sport 5 and LTX Trail series, covering tyre sizes from 16 to 22 inches.
Strategic Rationale & Investment
Meeting Rising Demand & Premiumisation
Michelin sees India as an increasingly important growth market for passenger tyres, especially in the 16-inch and above category. The company estimates that this segment currently accounts for 10–12 million tyres annually, and could expand to 17–18 million in the next 3–5 years. This aligns with broader trends in India’s auto market: SUVs and premium vehicles capturing a larger share of sales, plus consumer willingness to invest more in performance, comfort, and safety.
By locally producing these tyres, Michelin aims to reduce dependence on imports (and associated costs/tariffs), respond faster to market demands, and gain better control over logistics and quality.
The Investment & Capacity Expansion
Michelin has poured ₹686 crore into converting and expanding its Chennai facility for PCR tyre production. The move will boost the plant’s capacity, raising total output to 54,000 tonnes annually (up from earlier levels).
The plant has been designed with modern sustainability features: zero liquid discharge systems, 100% recycling, rainwater harvesting, and a significant share of energy drawn from renewable sources. Michelin already reports about 45% recycled material usage in its India plant and aims to move that toward 50% by 2030.
Market Approach & Challenges
Aftermarket first, then OEMs?
Michelin plans to enter the Indian passenger tyre market through the aftermarket channel first, i.e., selling to individual car owners, tyre retailers, etc. Over time, it may tap OEM (Original Equipment Manufacturer) supply, though that will depend on evolving capacity, certifications, and acceptance by automakers.
Imported Michelin tyres will continue to be sold for the time being, until the locally made-in-India versions clear all testing and regulatory certification.
Technical & Competitive Challenges
- Quality consistency & certification: Michelin must ensure that locally made tyres match global performance, safety, durability, and regulatory standards. That involves extensive testing, especially for India’s diverse road and climate conditions.
- Cost pressures: Localising manufacturing helps reduce import costs, but the company must manage raw material sourcing, labour efficiency, and economies of scale to stay competitive vis-à-vis domestic tyre makers.
- Competition: India already has established tyre manufacturers like MRF, Apollo, CEAT, JK Tyre, etc. Gaining market share in a competitive landscape is no small feat.
- Supply chain & logistics: Even with local production, ensuring a smooth supply of inputs (rubber, chemicals, metals) and efficient distribution across India is complex.
- Consumer acceptance: Some customers may initially perceive imported tyres as higher prestige. Michelin will need to build trust for its “Made-in-India” versions.
Implications & Outlook
- Strengthening “Make in India”: Michelin’s move is a vote of confidence in India’s manufacturing capabilities and policy environment. Local production can generate employment, upstream supplier growth, and tighter integration with the Indian auto ecosystem.
- Better pricing & availability: As production scales, locally made tyres may become more affordable and available across more cities, reducing delivery delays and import-related markups.
- Innovation hub opportunity: Michelin’s global tech investments include a strong presence in India (especially in R&D and AI). The local plant may further integrate with testing, materials development, and innovation for emerging mobility trends (EVs, sustainable materials).
- Market disruption: If Michelin executes well, it could push other global tyre majors to localise or intensify competition in premium tyre segments in India.
In summary, Michelin’s unveiling of its first made-in-India car tyres is a landmark shift for its India strategy. With significant investment, careful planning, and quality execution, it could reshape how premium tyres are made, marketed, and adopted in India. The next 12–18 months (through 2026) will be critical in seeing how effectively Michelin can translate this strategic bet into market gains.