Michelin plans to turn India into a key global hub for manufacturing, tyre development, artificial intelligence and sourcing, backed by more than ₹3,486 crore committed to its Chennai operations and a growing technology base in Pune.
The French tyre maker’s Pune operations develop products for North America and Asia. India also houses Michelin’s global artificial intelligence expertise centre, a major digital and information technology operation, and corporate service functions.
The company is also identifying Indian suppliers that could become part of its worldwide production network, Vitor Silva, president of Michelin’s Africa, India and Middle East region, said during a media interaction.
“It is really the intention of Michelin to make India one of our main hubs for our activity,” Silva said. “For us, India is more than just our tyres. It is all the ecosystem that we are building in India.”
Michelin employs around 2,500 people in India across manufacturing, tyre development, digital technology and artificial intelligence, according to Silva.
Over ₹3,400 Crore Committed to Chennai
Michelin entered into an agreement with the Tamil Nadu government in 2009 to establish a manufacturing facility at the SIPCOT industrial park in Thervoy Kandigai, around 50 km north of Chennai. Its initial investment in the project was more than ₹2,800 crore.
Commercial production of radial truck and bus tyres began in the first quarter of 2014. In September 2025, Michelin announced a further investment of ₹686 crore, or €76 million, to establish a passenger car tyre production line at the plant.
The expansion enabled Michelin to begin manufacturing premium passenger car tyres locally. The investment forms part of the company’s “local-to-local” strategy of producing closer to customers and adapting products to market-specific requirements.
Michelin has launched the Primacy 5 as its first passenger car tyre manufactured in India. The Chennai plant will also gradually add products such as the Pilot Sport 5, LTX Trail and others as production ramps up through the end of 2027.
The facility has a combined capacity of around 54,000 tonnes for truck, bus and passenger car tyres. Michelin said the initial investments required for passenger car tyre production have been completed, with further capacity additions to be made in phases based on demand.
Domestic Market First, Exports to Follow
The domestic market will remain Michelin’s priority for passenger car tyres. However, the company plans to expand Chennai’s role as an export base as production scales up.
“Our first priority is the local market. And then from here we can export, because the quality of the product is the same that you find anywhere else in a Michelin factory,” Silva said.
The Middle East and Africa would be the first logical export markets under Michelin’s regional manufacturing strategy, he added. The company already exports truck tyres made in Chennai to North America, Europe, Africa and the Middle East.
Michelin has said its India investment plans are driven by the country’s growth potential rather than trade agreements or short-term tariff changes.
“Our investments in India are linked to the potential and the growth outlook which we see from the changing market dynamics in India,” Shantanu Deshpande, managing director of Michelin India, said.
The company also benefits from Tamil Nadu’s established automotive manufacturing base. Guidance Tamil Nadu, the state’s investment promotion agency, says Tamil Nadu accounts for about 40% of India’s tyre production and 35% of its auto-component output.
Pune’s Role Extends Beyond Tyres
Michelin’s India strategy also covers artificial intelligence, data analytics and engineering. Its Pune teams work across AI, the Internet of Things, cloud systems, data analytics, mobile applications, mapping and digital retail platforms.
Pune is also part of Michelin’s international research and development network. Silva said engineers in India develop tyres for North American and Asian markets, giving the centre a global product-development mandate rather than one limited to India.
Globally, Michelin employs more than 6,000 people in R&D across 13 countries and allocates around €1.2 billion to innovation. The company filed 237 patents in 2025 and had nearly 12,000 active patents worldwide.
Michelin has also sought to connect its Indian technology operations with the country’s startup ecosystem. It partnered with the Department for Promotion of Industry and Internal Trade and Startup India for an AI challenge focused on technologies such as large language models and AI agents. Selected startups were offered paid pilot projects and the possibility of longer-term global contracts with Michelin.
Indian Suppliers for Global Operations
Sourcing is the next part of Michelin’s India expansion plan. The company is looking for Indian businesses that can supply materials, equipment and services to Michelin operations in other countries.
Michelin did not disclose the value of goods it currently sources from India or set a target for raising the country’s share in its global purchases.
However, Silva said adding suppliers across different regions would reduce dependence on any single geography. Michelin uses double- and triple-sourcing for critical inputs and relies on long-term agreements with major suppliers, he said.
“One of the reasons why we also want to make India part of our global supply chain is that we try to balance our risks by adding suppliers in different geographies,” Silva said.
Michelin’s global purchasing platform covers raw materials such as natural rubber, elastomers, chemical products, fillers, metal reinforcement and textiles, along with industrial equipment, information technology and logistics services. The company says new suppliers undergo financial, technical, quality and sustainability assessments before entering its network.
The tyre maker has not announced a timeline for making India a full-scale global sourcing hub or disclosed further investment beyond the existing Chennai expansion. Its next steps will depend on domestic demand, plant utilisation and the ability of Indian suppliers to meet Michelin’s global standards.