(L-R) Vitor Silva, President, Michelin Africa, India and Middle East Region, Shantanu Deshpande, MD, Michelin India and Jean-François RENE, Executive Director, Michelin Chennai

Chennai: French tyre maker Michelin has begun manufacturing passenger car tyres in India, joining a growing industry push towards localisation as rising SUV sales and premiumisation reshape the country’s tyre market.The company on Monday rolled out its first locally made passenger car tyre, the Primacy 5, from its Chennai plant, marking its entry into domestic production of passenger vehicle tyres after years of serving the market largely through imports.“SUVs accounted for around 20% of new car sales a decade ago. Today, they account for around 50% of all new cars sold in India. Annual SUV sales have increased from around half a million to 1.5 million units. Consumers are choosing these vehicles because they want to feel safe and comfortable while travelling with their families, especially at higher speeds. We will manufacture tyres ranging from 16-inch to 22-inch sizes at the Chennai factory,” said Shantanu Deshpande, MD, Michelin India.Michelin will initially manufacture 16-inch to 22-inch tyres, targeting the premium replacement market, where demand is being fuelled by the rapid shift towards SUVs and higher-end passenger vehicles.The company’s move reflects a broader trend in India’s tyre industry, where manufacturers are increasingly investing in local production of larger, premium tyres as consumers migrate from small hatchbacks to SUVs and crossovers.“Over the next two years, the Chennai plant will progressively manufacture other global product families, including the Pilot Sport 5 performance tyres and LTX Trail tyres for SUVs, as production ramps up through 2027, said Jean-François Rene, Executive Director, Michelin Chennai.The company said India’s premiumisation trend, improving road infrastructure, rising disposable incomes and the growing preference for SUVs make the country one of its most promising long-term growth markets.Initially, Michelin will focus on meeting domestic demand, but the company expects India to emerge as an export base for passenger car tyres, supplying markets in the Middle East and Africa while continuing exports of truck tyres to Europe and North America, said Vitor Silva, President, Michelin Africa, India and Middle East Region.The Chennai plant has a combined annual installed capacity of 54,000 tonnes for truck, bus and passenger car tyres, with scope for expansion as demand grows.