Michelin is thinking about establishing local tyre manufacturing in India

The tyre manufacturer, which has 67 plants in 175 countries, presently distributes only premium larger-size tyres in limited quantities, particularly for performance-oriented models in India.

According to CEO Florent Menegaux, French tyre giant Michelin is actively contemplating local production of passenger car tyres in India.

The local production would allow the tyre company to expand its operations in India, which is still severely constrained due to the government's imposition of import restrictions in 2020.

The tyre manufacturer, which has 67 plants in 175 countries, presently distributes only premium larger-size tyres in limited quantities, particularly for performance-oriented models in India.

The Indian government imposed import limits on several new pneumatic tyres used in autos, buses, trucks, and motorcycles in order to boost domestic production. As a result, tyre manufacturers will now be able to import a restricted quantity of tyres within the country under a limited import license.

Michelin has a production facility in Chennai that produces a variety of radial truck/bus tyres and defence tyres for original equipment manufacturers (OEMs) and the country's replacement market.

Tyre companies can only import a limited number of tyres into the country under a limited import licence, which was not the case before to 2020. The tyre company sees India as a big developing market.

The corporation is keen to invest in the local production of passenger vehicle tyres in India, and the only issue that remains to be resolved is the timing. The company has a global footprint, it must carefully examine investment prospects in each country.

"Because we invest all over the world, the question is when is the right time for India. The question is not whether we should invest in India, but when," Menegaux added.