Michelin considering production of passenger vehicle tyres in India
The company is eager to invest in the local production of passenger vehicle tyres in India and the only thing which needs to be worked out is the timing for the same: CEO
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Cuneo (Italy): French tyre major Michelin is actively considering production of passenger vehicle tyres locally in India, according to the group Chief Executive Officer Florent Menegaux.
The local manufacturing would help the Clermont-Ferrand based tyre major to scale up operations in India, which remain critically subdued with the government introducing import restrictions in 2020. The tyre maker, which has presence in 175 countries with 67 plants, currently sells only premium bigger size tyres in limited quantity especially for performance oriented models in India.
In 2020, the government imposed curbs on imports of certain new pneumatic tyres used in motor cars, busses, lorries and motorcycles in a move to promote domestic manufacturing. Tyre companies can now import only a small number of tyres into the country under a limited import licence, which was not the case before 2020. In an interaction, Menegaux said the group sees India as a great developing market. He noted that the company is eager to invest in the local production of passenger vehicle tyres in India and the only thing which needs to be worked out is the timing for the same. "Now we are reaching the moment where it will make sense to invest in the passenger car capacity (in India)," Menegaux noted.
Elaborating further, he said that as the company has presence across the globe it needs to carefully evaluate investment options across the regions. "We invest in many places around the world so the question is when is the right time for India. It is not a question whether we should invest in India, the question is when," Menegaux said. When asked specifically about the timeframe for the new investment, he said: "It is under the process right now."
Menegaux noted that the Michelin group sees India as a great developing market where infrastructure is developing at a very fast pace. "With proper infrastructure in place the speed (of vehicles on roads) will increase and the relevance of our technology will be even more visible," he said.
