The launch of the Made-in-India MICHELIN Primacy 5, the company’s first locally manufactured passenger car tyre, is not simply another product introduction. It is the cornerstone of a broader strategy that spans premium mobility, advanced manufacturing, artificial intelligence, customer experience and global supply chains. As India’s automotive market shifts towards larger, safer and more premium vehicles, Michelin believes the country is ready for technology-led tyres manufactured closer to home.

For much of the past decade, Michelin’s India story has largely revolved around truck and bus radial tyres. The French tyre maker built a modern manufacturing facility in Chennai, supplied premium commercial vehicle tyres to both domestic and export markets, expanded its engineering, research & development and digital capabilities in Pune and patiently built its brand in a market where price traditionally outweighed premium performance.

But now, Michelin believes the timing is right to make its biggest play yet in India’s passenger vehicle market.

The company has launched the MICHELIN Primacy 5, the first passenger car tyre manufactured by Michelin in India, ending years of reliance on imports for one of its most important premium product lines. This new launch represents more than localisation. It reflects Michelin’s confidence that India is entering a new phase of automotive consumption – one where buyers increasingly prioritise safety, comfort and long-term ownership value over the lowest purchase price.

Speaking at the launch in Chennai, Shantanu Deshpande, Managing Director, Michelin India, described the milestone as the culmination of a strategic shift announced just 18 months earlier.

“Just about a year and a half ago, we stood here and announced that we were going to start manufacturing passenger car tyres. It’s no more a promise. It is actually happening. The tyres are being manufactured as we speak now in our factory,” said Deshpande.

The passenger car production line was commissioned in just 12 months, supported by 50,000 hours of employee training and equipped with Michelin’s latest manufacturing technologies. But the investment is less about expanding capacity than positioning Michelin for what it sees as the next chapter of India’s automotive evolution.

RAPIDLY CHANGING PASSENGER CAR SEGMENT

The central premise behind Michelin’s strategy is straightforward: India is no longer simply a small-car market.

For years, hatchbacks dominated domestic passenger vehicle sales, shaping not only vehicle development but also tyre demand. That landscape has changed dramatically as rising incomes, improved highways and changing consumer aspirations have driven buyers towards larger vehicles.

Deshpande believes this transformation is reshaping consumer expectations. “Generally speaking, India is not a country now which is looking for cheap products. It is not limited only to automobiles. You see premiumisation happening across technology, real estate, lifestyle, and it is equally applicable to mobility,” explained Deshpande.

He argues that better road infrastructure has fundamentally altered how Indians use their cars. Explaining it further, Deshpande said, “Cars are no longer just something parked in the garage during the week and taken out over weekends. Families are travelling longer distances at higher speeds, and consumers are looking for bigger cars, comfortable cars and safer cars.”

The numbers support that view.

SUVs, crossovers and MPVs accounted for just over one-fifth of passenger vehicle sales in 2010. By 2025, they represented more than half of new vehicle sales, while annual volumes in the segment have expanded to roughly 1.5 million units. Michelin believes that trend will continue, creating sustained demand for premium tyres in the 16-inch and above category.

That explains why the Chennai plant will manufacture tyres ranging from 16 to 22 inches – sizes increasingly fitted to SUVs and premium sedans rather than traditional entry-level hatchbacks. “Our chosen segment is 16 inches and above. That is where we see the strongest growth,” Deshpande said.

Unlike domestic tyre manufacturers that compete across virtually every price segment, Michelin is deliberately narrowing its focus.

Rather than chasing volume at the lower end of the market, it wants to dominate the premium replacement segment, where technological differentiation and brand equity command stronger pricing power.

SAFETY AS A VALUE PROPOSITION

Launching another premium tyre in India would have been difficult if Michelin relied solely on brand reputation. Instead, the company is attempting to build its value proposition around measurable safety performance.

The Primacy 5 has been tested in India by independent testing agency Applus+ IDIADA against competing premium products from its immediate peers on Indian roads.

According to Michelin, the tyre stops up to eight metres shorter than competing tyres in wet braking tests when new and up to nine metres shorter when worn. It also delivers a four-metre advantage in dry braking while offering an eight percent improvement in longevity over its predecessor, the Primacy 4ST.

For Deshpande, these figures translate into a much broader consumer message. “Eight metres is probably as long as a city bus. That difference, when you’re driving in wet conditions, is the difference between being safe and being involved in an accident,” explained Deshpande.

More importantly, Michelin emphasises that the braking advantage remains even after the tyre has worn. “The confidence is not only when you buy a new tyre. The confidence lasts for the entire life of the tyre. That is what the consumer wants,” added Deshpande.

This lifecycle approach has become a defining characteristic of Michelin’s premium positioning globally, but it is particularly relevant in India, where tyres are often used until the legal wear limit or beyond.

The Primacy 5 delivers a claimed 6.5 percent improvement in rolling resistance compared with the Primacy 4ST, helping reduce fuel consumption in internal combustion vehicles while extending driving range in electric vehicles. Michelin also claims a nine percent improvement in ride comfort through a redesigned tread pattern aimed at reducing road noise.

BENCHMARKING AGAINST THE BEST

Michelin is positioning the Primacy 5 at the top end of India’s replacement tyre market, and its performance claims have been measured against what it considers the strongest competitors in the segment.

Rather than comparing the tyre with mid-market products, the company benchmarked the Primacy 5 against flagship offerings from its immediate peers.

“We picked the top-of-the-line products,” Deshpande said.

The comparison included Bridgestone’s Turanza range, Continental’s UltraContact UC6 and Yokohama’s BluEarth series – products that define the premium replacement segment. By evaluating the Primacy 5 against competitors’ best offerings, Michelin believes it provides consumers with a more meaningful assessment of performance, particularly in safety, comfort and longevity.

For Michelin, the objective is not simply to participate in the premium category but to establish itself as the benchmark against which other premium tyres are measured.

AN EV STRATEGY WITHOUT BUILDING AN EV TYRE

Another notable aspect of Michelin’s positioning is its approach to electric vehicles.

Unlike several competitors that market dedicated EV tyre ranges, Michelin is promoting the Primacy 5 as a platform equally suited to internal combustion engine, hybrid and battery-electric vehicles.

The tyre has been engineered to manage the additional weight and higher torque associated with electric vehicles while reducing rolling resistance to improve driving range.

Deshpande summarised the positioning succinctly: “Our products are good for ICE and great for EV.”

Rather than creating separate product families, Michelin appears to believe that mainstream premium tyres will increasingly serve multiple powertrain technologies as the market evolves.

That approach may prove particularly relevant in India, where consumers continue to choose between petrol, diesel, hybrid and electric vehicles across the same model lines.

LOCAL MANUFACTURING GOES BEYOND IMPORT SUBSTITUTION

For Michelin, manufacturing passenger car tyres in India is not simply about reducing imports. It reflects the company’s broader ‘local to local’ strategy – producing closer to customers while maintaining global technology and quality standards.

The Chennai facility now houses one of Michelin’s most advanced passenger car production lines, featuring extensive automation and robotics. Questions inevitably arose about whether tyres manufactured in India would differ from those produced in Europe.

Deshpande dismissed the suggestion. “The fact that we have been exporting our truck tyres made in Chennai to North American markets, European markets and African markets is testimony that a Michelin tyre of the same quality standards which is made outside India can be made in India,” said Deshpande.

The only changes, the Michelin India executive said, involve reinforcing the tyre for Indian road conditions while maintaining the same global performance standards.

WHY MICHELIN SKIPPED PRIMACY 4

The launch also prompted questions about Michelin’s product strategy.

Why introduce the Primacy 5 as the first locally manufactured passenger car tyre instead of producing the outgoing Primacy 4? Deshpande said the answer was straightforward.

“The Primacy 4 is a tyre line which is getting succeeded by Primacy 5. We are selling Primacy 4 right now because we wanted to manufacture Primacy 5 in India. Now that we are launching Primacy 5, over time, through a phase-in and phase-out process, we’ll discontinue Primacy 4 and have only Primacy 5,” stated Deshpande.

PREPARING FOR THE AI CONSUMER

Michelin also sees artificial intelligence reshaping how tyres are marketed. According to Deshpande, the battle for consumer attention is moving beyond Google.

“The research online is now changing. It is not just websites or Google. People are searching through AI,” he said. That requires manufacturers to rethink how information is published.

“It is very important that you are engaging on the right forums where this information is crawled by AI agents. Platforms talking objectively about tyres and vehicles need to have the right content available so that whenever a consumer researches, that information is captured and presented,” added Deshpande.

BUILDING A GLOBAL SUPPLY CHAIN FROM INDIA

Michelin’s ambitions in India extend well beyond manufacturing finished tyres.

Alongside expanding local production, the company is actively identifying Indian suppliers that can become part of Michelin’s global procurement network. Deshpande explained that Michelin categorises its raw materials into three broad groups. Certain strategic components and proprietary compounds continue to be produced internally to safeguard intellectual property, while natural rubber remains an area where India still depends heavily on imports because domestic production cannot fully meet industry demand.

The larger opportunity, however, lies in industrial raw materials such as chemicals, carbon black and other tyre manufacturing inputs.

“Our focus is to procure more of these raw materials locally in India but also identify suppliers who can become part of Michelin’s global supply chain,” Deshpande said.

European replacement tyre demand rose in the second quarter of 2026, driven by strong growth in truck and bus segments, according to industry data published by Tyres Europe.

“European replacement tyre demand strengthened in Q2 2026, particularly truck and bus tyres,” said Adam McCarthy, Secretary General of Tyres Europe.

Consumer tyres, which include passenger cars, SUVs and light commercial vehicles, increased by three percent year on year in the quarter, lifting volumes for the first half by two percent. Growth was led by all-season tyres, which rose 15 percent in the quarter and nine percent in the first half.

By contrast, summer tyres declined by two percent, while winter tyres edged down one percent in the quarter and remained five percent lower over the first half, continuing a shift in demand towards all-season products.

Truck and bus tyres recorded the strongest performance, rising 13 percent in the second quarter and seven percent in the first half. The increase came despite geopolitical pressures and elevated fuel and energy costs, with freight activity and business sentiment remaining resilient.

Agricultural tyres continued to contract, declining seven percent in the quarter, although at a slower rate than earlier in the year. Moto and scooter tyres rose one percent in the quarter and were four percent higher across the first half.

Tyres Europe said miles travelled declined during the period, reflecting higher average fuel prices and weaker consumer sentiment linked to the ongoing conflict in the Middle East. Imports, however, rebounded after sharp declines in the first quarter.

Separate data showed changes in trade flows. Imports of passenger car, light commercial and truck tyres into the EU27 and UK fell six percent year on year between January and May 2026. Shipments from China dropped 24 percent, reducing its share to 58 percent from 72 percent a year earlier.

Suppliers in south-east Asia increased their presence, with their share rising to 19.9 percent from 7.4 percent, led by Thailand and Vietnam.

The shift followed an anti-dumping investigation by the European Commission, which concluded that Chinese imports had entered the market at unfair prices. Definitive duties ranging from 4.3 percent to 45.3 percent were imposed from July 8, 2026 for an initial five-year period.

In the truck and bus segment, imports into the EU27 and UK from non-European markets rose by almost 27 percent in the first five months of the year. Thailand and Vietnam together accounted for nearly 61 percent of volumes, reflecting a broader shift in supply away from traditional sources such as China, Korea and Japan.

Tyres Europe represents 14 corporate members whose combined global sales account for around 70 percent of the worldwide tyre market.

Fennell Tyres International, part of the Magna Tyres Group, has acquired Bunbury's Tyre Specialists, extending its operations into the South West of Western Australia. The transaction amount has not been disclosed.

The deal takes effect on 17^th  August, when the Bunbury business begins trading under the Fennell Tyres International name. The site will continue operating during the transition, and existing customer contacts and service contracts will remain in place where applicable. About five employees will join Fennell Tyres International as part of the acquisition.

Fennell Tyres International, based in Kewdale, has expanded across Western Australia since joining the Magna Tyres Group in 2020. It supplies tyres, servicing and technical support to the transport, mining, industrial, construction and earthmoving sectors.

The acquisition follows a long-standing relationship between Aldo Gismondi, Director of Magna Tyres Australia, and Bevan Dillon, Director of Bunbury's Tyre Specialists. The two have worked together for many years, sharing a focus on customer service and support for the transport, construction, industrial and earthmoving sectors.

Gismondi said: "This acquisition represents an exciting opportunity to further strengthen our service network across Western Australia. Bunbury's Tyre Specialists has built an outstanding reputation throughout the Southwest, and together we look forward to delivering even greater value and service to our customers."

Dillon said: "The relationship between our organisations has developed over many years, making this a natural progression. We are proud of the reputation Bunbury's Tyre Specialists has established and are excited about the opportunities this acquisition will create for our customers and our team."

Fennell Tyres International said the acquisition would improve its ability to serve customers in both Perth and regional Western Australia, with faster response times and wider product availability. The company described the move as the next stage of its long-term investment strategy, aimed at expanding its regional service capability across Western Australia's metropolitan and regional markets.

Michelin has opened four new tyre retail and service outlets in Chennai, strengthening its presence in one of its key Indian markets.

The new Michelin Tyre and Services (MTS) stores are located in Gopalapuram, Adyar, Tambaram-Selaiyur and Maduravoyal, extending the company’s reach across central, southern and western parts of the city.

The expansion coincides with the company’s recent launch of its made-in-India Primacy 5 tyres and is aimed at improving access to premium tyre products and automotive services.

Each outlet has been developed in line with Michelin’s global retail standards, with service bays, equipment and customer facilities designed to support vehicle maintenance and tyre care.

The Gopalapuram outlet has been opened in partnership with Lal Enterprises, a tyre business established in 1987. The Adyar store operates with RR Tyres, which serves customers across south Chennai, including Besant Nagar, Thiruvanmiyur and the ECR and OMR corridors.

In Tambaram-Selaiyur, the company has partnered with Rao Tyres, which has operated in the city since 1992 and maintains a long-standing association with Michelin. The fourth outlet in Maduravoyal has been launched with Lal Tyre Centre, located near the Chennai Bypass to serve industrial and commercial areas in the west of the city.

Shantanu Deshpande, Managing Director of Michelin India, said: “India's premium mobility landscape is evolving rapidly, and Chennai stands at the forefront of this shift, with growing demand for high-performance, safe, and sustainable mobility solutions across sedans, SUVs, and electric vehicles. The launch of four Michelin Tyre Service stores in a single city reflects the strength of this opportunity and our commitment to bringing world-class mobility solutions closer to our customers. In line with our recently launched Made-in-India Primacy 5, developed and manufactured in India for Indian road conditions, these outlets will make globally benchmarked tyres and services more accessible to motorists across the city. India continues to be a key growth market for the Michelin Group, and as we expand our retail presence and strengthen our service ecosystem, we remain committed to delivering superior mobility experiences tailored to the evolving expectations of Indian consumers.”

Chennai serves both as a consumer market and a manufacturing base for Michelin in India. The company said rising premium vehicle ownership and increasing demand for organised automotive service centres were driving growth in the city.

The new outlets expand Michelin’s retail footprint in Tamil Nadu and add capacity across both suburban and central corridors, supporting its service network in the region.

Gaurav Kumar has resigned as a whole-time director of Apollo Tyres, the Indian tyre manufacturer, after more than two decades with the company, though he will remain chief financial officer during a transition period.

The Gurugram-based company's board approved the resignation at a meeting on Thursday. Kumar steps down as a director, and consequently as a member of the risk management committee, with effect from the close of business the same day. The company said he had confirmed there was no material reason for his departure beyond that stated in his resignation letter.

Kumar will continue as chief financial officer for such period as is necessary to ensure a smooth transition, after which he will cease to be part of the company's senior management.

In his resignation letter, Kumar said: "It has been terrific to be part of the incredible journey at Apollo Tyres thus far. I have learned, and hopefully contributed in equal measure, and now seek to explore alternative and new challenges. I wish Apollo Tyres the very best for the journey ahead and will always be part of the Apollo Tyres Family." He added that he was grateful to Onkar Kanwar and Neeraj Kanwar for their support during his tenure of more than 22 years at the company.

Neeraj Kanwar, Vice-Chairman and Managing Director, said: "Gaurav deserves kudos for the critical role he has played in the growth of Apollo Tyres, both in India and overseas, in the last twenty years. While we do regret losing him, we are conscious of his personal aspirations and wish him the very best in his future endeavours."

The company said it was in the process of appointing a new chief financial officer.