Michelin plans to transform India into one of its principal global hubs for manufacturing, tyre engineering, research and development (R&D), artificial intelligence (AI), digital technology and sourcing, with the launch of the locally manufactured Primacy 5 passenger car tyre marking a significant step in that strategy.

"It is really the intention of Michelin to make India one of our main hubs for our activity," said Vitor Silva, President of Michelin's Africa, India and Middle East region, during a media interaction. "For us, India is more than just our tyres. It is all the ecosystem that we are building in India."

Michelin currently employs around 2,500 people in India across manufacturing, tyre development, digital technology and AI. The company's Pune operations already develop products for North America and Asia while also housing Michelin's global AI expertise centre, digital and information technology operations, and corporate service functions.

Michelin is also identifying Indian suppliers that could become part of its global manufacturing network. The strategy extends beyond research and sourcing to manufacturing, with the company launching the Primacy 5 as its first passenger car tyre to be produced in India. The French tyre maker said its decision to manufacture passenger car tyres in India is intended to bring production closer to customers and develop products better suited to local operating conditions rather than to achieve an immediate reduction in manufacturing costs.

"The reason for us to produce it is not a cost reason," Silva said.

Silva said production at Michelin's new passenger car tyre line in Chennai will initially cost more than at some of the company's established overseas factories because of depreciation on the new investment. However, costs are expected to become comparable with Michelin's plants in Asia and Eastern Europe as production volumes increase.

"At the beginning of a project, the tyre will always be a little bit more expensive because we have all the investments that we need to depreciate," he said.

Despite the higher initial production costs, Michelin India Managing Director Shantanu Deshpande said the Primacy 5's pricing is based on its safety, comfort, durability and efficiency rather than its country of manufacture.

"We are not going to increase or decrease the price of our Primacy 5 just because it is made in India or because it is being made in a new factory," Deshpande said.

Over Rs. 34.9 billion (US$ 365.5 million) invested in India

Michelin entered into an agreement with the Tamil Nadu government in 2009 to establish its manufacturing facility at the SIPCOT industrial park in Thervoy Kandigai, around 50 km north of Chennai, committing more than Rs. 28 billion to the project.

Commercial production of radial truck and bus tyres began during the first quarter of 2014. In September 2025, Michelin announced an additional investment of Rs. 6.9 billion to establish a passenger car tyre production line at the Chennai plant, bringing its total investment in the site to more than Rs. 34.9 billion.

The expansion enabled Michelin to begin local production of premium passenger car tyres under its "local-to-local" strategy of manufacturing closer to customers while adapting products to local market requirements. The Chennai facility has a combined production capacity of around 54,000 tonnes of truck, bus and passenger car tyres annually.

Michelin said the major investments required for the first phase of passenger car tyre production have been completed, with further capacity expansions to be introduced in phases according to market demand. The company has introduced the Primacy 5 as the first passenger car tyre to be manufactured at its Chennai facility.

Designed for sedans and SUVs, the tyre is compatible with internal combustion engine (ICE), hybrid and electric vehicles (EVs). It will be available in sizes ranging from 16 inches to 22 inches, with prices starting at approximately Rs. 10,000 depending on tyre size. The Primacy 5 will be available from August through Michelin Tyres & Service outlets and around 800 authorised dealers nationwide.

Deshpande said local production fulfils the company's commitment made around 18 months ago. "It is no longer a promise. It is actually happening. The tyres are being manufactured as we speak now in our factory in Chennai," he said.

Michelin plans to gradually add additional passenger car tyre products, including the Pilot Sport 5 and LTX Trail, as production ramps up through the end of 2027.

Initial focus on replacement market

Michelin will initially focus on India's passenger vehicle replacement tyre market before expanding supplies to original equipment manufacturers (OEMs), with the company viewing the domestic market as the foundation for its broader manufacturing and export strategy.

"We will start and focus on getting our share together in the replacement market. As we grow and as we have opportunities, the OEM segment will also happen," Deshpande said.

The company previously adopted a similar strategy for its truck and bus tyre business, entering the replacement market before supplying vehicle manufacturers. Silva said the domestic market will remain Michelin's immediate priority, although exports from the Chennai facility are expected once production volumes increase.

"Our priority is the local market. And then from here we can export," he said.

The Middle East and Africa are expected to become the first export destinations for passenger car tyres manufactured in Chennai. Michelin already exports truck tyres produced at the facility to North America, Europe, Africa and the Middle East. On the retail side, Michelin currently operates around 150 Michelin Tyres & Service outlets across India. The company plans to further expand the network, particularly in Tier-II and Tier-III cities.

Built for Indian conditions

Michelin said the locally manufactured Primacy 5 follows the same core quality standards, production processes, machinery and compounds used at its global manufacturing facilities. However, the tyre has been specifically adapted for Indian operating conditions. Additional reinforcement, including extra material in the sidewalls, has been incorporated to improve resistance against road hazards commonly encountered in India, making the locally produced tyre slightly heavier.

The tyre has also been fine-tuned for Indian temperatures, humidity levels and road surfaces.

"One of the advantages of having a local-to-local approach is that you can fine-tune the product to local conditions," Silva said.

Jean-François Rene, Executive Director of Michelin Chennai, said the additional reinforcement improves durability while maintaining Michelin's global quality standards.

Safety, comfort and efficiency

Michelin is positioning safety as one of the Primacy 5's primary strengths. The company said the tyre incorporates an optimised tread pattern, next-generation rubber compounds and Michelin's EverGrip and EverTread technologies. According to Michelin, tests commissioned by the company showed the Primacy 5 delivered wet braking distances of up to eight metres shorter than the average of competing premium tyres when new and up to nine metres shorter when worn.

Growing premium tyre demand

Michelin's strategy to establish India as one of its principal global hubs for manufacturing, tyre engineering, AI, digital technology and sourcing coincides with rising demand for premium tyres as Indian consumers increasingly shift towards SUVs and larger passenger vehicles.

The company plans to manufacture passenger car tyres in sizes ranging from 16 inches to 22 inches and aims to establish a leadership position in the 18-inch-and-above segment.

According to the Society of Indian Automobile Manufacturers (SIAM), utility vehicles accounted for approximately 68% of domestic passenger vehicle sales during the first quarter of FY2026-27. Utility vehicle sales rose 28.6% year on year, contributing to an overall 25.9% increase in passenger vehicle sales to 1.27 million units.

Michelin said improved highway infrastructure, longer leisure journeys and higher average travelling speeds are encouraging consumers to seek tyres offering better braking performance, comfort, durability and efficiency.

The premium vehicle market has also continued to expand. The Primacy 5 will compete with premium touring tyres, including the Bridgestone Turanza 6i, Continental UltraContact UC6 and Yokohama BluEarth-GT Max AE51, which Michelin used as comparison products during its braking and comfort evaluations.

Depending on tyre size, the Primacy 5 will also compete with locally produced premium offerings such as the CEAT SportDrive, Apollo Aspire 4G+ and MRF Perfinza. For Michelin, the launch of the Primacy 5 represents more than the introduction of a new premium passenger car tyre. It also marks another milestone in the company's broader strategy of strengthening India's role within its global operations.

Beyond manufacturing tyres for the domestic market, Michelin intends to leverage its Indian operations for tyre engineering, research and development, AI, digital technology, corporate services and global sourcing, while expanding exports as production volumes increase. The company views India as an integrated ecosystem that combines manufacturing capability, engineering expertise, digital innovation and supplier development to support its worldwide operations.

Silva said Michelin's objective is to build long-term capabilities in India rather than focus solely on local production.

"It is really the intention of Michelin to make India one of our main hubs for our activity, for us, India is more than just our tyres. It is all the ecosystem that we are building in India," he said.

As production capacity expands and additional passenger car tyre lines, including the Pilot Sport 5 and LTX Trail, are introduced through the end of 2027, Michelin expects its Chennai manufacturing facility to play a growing role in serving both domestic demand and export markets.

Together with its Pune operations, which already support global tyre development, AI, digital technology and corporate services, and its efforts to integrate Indian suppliers into its worldwide manufacturing network, the company believes India will become one of the key pillars of Michelin's global business in the years ahead.