Reuters.

Group Chief Executive Florent Menegaux French tire giant Michelin is actively considering producing passenger car tires in India. Local manufacturing would help the Clermont-Ferrand-based tire giant expand its presence in India. India has suffered a severe recession due to import restrictions imposed by the government in 2020.

The tire maker operates in 175 67 countries Currently, only a limited number of premium heavy-duty tires are sold in India, especially for performance-oriented models.

In 2020, the government will restrict the import of some new pneumatic tires for cars, buses, trucks and motorcycles to promote domestic manufacturing.

Now tire companies can only import a small number of tires into the country under a restricted import license. This was not possible in 2020 a year ago.

Menegaux, in an interaction with PTI, said that the group sees India as a huge growth market.

He pointed out that the company is keen on investing in the production of passenger car tires in India and the only issue that needs to be addressed is the timing.

Menegall said:
“We are now at a point where we are investing in bus capacity (in India).”

He also explained that since the company operates globally, it has to carefully evaluate investment options in different regions.

Menegade said, “We invest in many places around the world. So when is the best time to invest in India? It is not whether we should invest in India, but when,” Menegard said.

Asked about the exact timeline for new investments, he said, “We are currently working on it.”

The Michelin Group sees India as a large developing country with very fast infrastructure development.

He said, “Once the proper infrastructure is in place, the speed of vehicles on the road will increase and the relevance of our technology will become more apparent.” .

Michelin is now entering the truck and bus radial tire segment in India. It has a manufacturing plant in Chennai with a capacity of over 30,000 tons per year.

Currently, the plant is focused on Original Equipment Manufacturers (OEMs) producing a wide range of truck/bus radial and defense tires in the domestic alternative market. Michelin also produces two-wheeler tires in China through its partners.

Menegaux noted that the restrictions imposed by the Indian government on imported tires are disappointing.

“We have tapped into a good market in the passenger car segment through imports, which is our traditional business model,” he noted, adding, “We start with imports and start production only after reaching a certain volume.”

Menegade believes the Indian government’s policy is good, but noted that restricting imported tires may not be the right thing to do.

He also sought government support to protect the country’s intellectual property (IP) environment.

“IP protection is very important for us because we have a lot of inventions and innovations,” he said.

Menegaux noted that the group has about 13,200 prominent employees globally and continues to invest in various capabilities in India.

“As a global AI hub, we have set up a large center in Pune. We conduct research activities and digital services. We employ 2,300 people in the country” multiple employees,” Menegaux said.

The Michelin Group plans to produce about 2 years 100 million tires globally by 2022, and set a goal of using 100% sustainable materials in tires every year by 2050.

The company recently launched two tires, one for cars and one for buses, containing 45% and 58% sustainable materials, respectively.

“With more people-centric, innovative and environmentally friendly industrial facilities, we will meet the challenges of the changing tire market. We are confident that we will achieve our strategic goals for tires, around tires and outside tires.” Menegao said.

He laid out the company’s goals and strategy at the Michelin plant in Cuneo, Italy, the largest automotive tire plant in Western Europe.

Our correspondent was invited to Cuneo by Michelin.