Michelin starts Chennai-made passenger-car tyre production for India’s premium SUV market

Michelin has begun producing passenger-car tyres in Chennai after investing ₹686 crore in a new line. The company is targeting India’s premium replacement market first, with OEM supply and exports planned as capacity scales.

— Source publishedMon, 3 Aug, 2026, 19:30 IST·First seen Mon, 3 Aug, 2026, 20:06 IST·Source The Hindu BusinessLine

What happened

Michelin launched its first India-made passenger-car tyre from Chennai, targeting the premium SUV-led replacement market. The company has invested ₹686 crore in

Key facts

  • ₹2,800 crore initial Chennai facility investment in 2009
  • ₹686 crore (€76 million) additional investment in passenger-car tyre line
  • 16-inch to 22-inch tyre sizes
  • Prices start at ₹10,000
  • Passenger-car tyre production commenced in June
  • Truck and bus tyres became commercially available in 2014
  • Passenger-car production localisation commitment was made around 18 months ago

Why this matters

Michelin’s local manufacturing footprint strengthens its case for OEM supply partnerships and distribution alliances as premium-vehicle demand expands across India and export markets.

What to watch

  • Chennai plant capacity, utilisation and additional capex announcements.
  • Michelin wins for OEM factory fitment in India.
  • Changes in availability or pricing of imported Michelin passenger-car tyres.
  • Premium SUV and EV sales growth, especially in 17- to 22-inch wheel sizes.
  • Dealer-network expansion and replacement-market market-share data.
  • Export approvals, shipment disclosures or new regional distribution agreements.
  • Expand Chennai capacity and mould range beyond initial premium SUV sizes.
  • Build premium-dealer, tyre-retail and service-centre coverage in major metros and affluent tier-2 cities.
  • Pursue OEM homologation with premium SUV, EV and luxury-car assemblers.
  • Use India output as an export base for nearby right-hand-drive and emerging markets.
  • Introduce locally supplied EV-specific and higher-load-index tyre variants as premium EV volumes rise.