French tyre maker Michelin is setting up a manufacturing base in India, joining the ranks of companies like Goodyear and Bridgestone that have set shop here.Michelin will set up a facility in Chennai at an investment of Rs 4,000 crore, which will be operational by 2012. The production capacity of the plant was not specified.
“The memorandum of understanding in this regard was signed by the Michelin management and the Tamil Nadu government,” the company said in a statement. Proximity to port has helped Tamil Nadu emerge as a favourite destination for automakers as well as ancillary units.
Michelin had planned a manufacturing facility near Bangalore in 2000, but put the plans on backburner after it realised that the demand for radial tyres in the country was low.
Currently, Michelin tyres are imported into the Indian market. But now with tyre industry rapidly moving towards radialisation from the earlier preference for bias tyres, Michelin is setting up facility which will manufacture radial truck/bus tyres.
Rajiv Budhraja, director, Automotive Tyre Manufacturers Association (ATMA), said, “Players like Bridgestone, Goodyear and now Michelin have come to India as there is demand in India and also in China. Foreign players in the tyre market will lead to increased volumes and also enhance domestic manufacturing.”
“We are committed to strengthening our presence in India and growing our business. An increase in the focus of the government to build better roads to support the challenges of mobility of people and goods in India will result in an ever increasing demand for radial truck/bus tyres,” Philippe Neyrat, commercial director, Michelin India, said.
According to ATMA, the tyre production grew by 5% to 446 lakh tyres during April-September this year compared with the same period last year.
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