Michelin is turbocharged about India. The global tyre manufacturer has increased its investment in its Chennai plant to INR 6.86 billion, up from the INR 5.64 billion announced last September, as it prepares to manufacture premium passenger car tyres locally for the first time. The move comes as India’s automotive landscape undergoes a dramatic shift, with SUVs accounting for half of all new car sales and consumers increasingly willing to pay premium prices for safety and performance.

After more than a decade of producing only truck tyres in India and serving the passenger car segment through imports, Michelin is betting that the time is right to localise production. The company expects India’s premium passenger car tyre market to grow from 10-12 million units today to 17-18 million by 2030, driven by improving road infrastructure and evolving consumer preferences. With its first locally-made passenger car tyres – including the Primacy 5 and Pilot Sport ranges – expected to hit the market in the first half of 2026, Michelin is positioning India not just as a manufacturing base but as a centre of excellence for AI innovation, engineering talent and sustainable production across Africa, Middle East and beyond.

Last year, in September, Michelin had announced an investment of INR 5.64 billion in a brownfield expansion to produce passenger car radial tyres at its Chennai plant. Year-to-date, the company has already ramped up the figure to INR 6.86 billion, fuelled by its confidence in India’s passenger car market.

“We are bullish about India because of two major reasons. One is the transformation of the vehicle market itself, as last year, around 50 percent of new cars sold in India were SUVs. At the same time, road infrastructure is improving dramatically. That leads to the second factor that Indian consumers increasingly want bigger, safer cars with advanced safety features and they are willing to pay a premium for performance,” said Shantanu Deshpande, Managing Director at Michelin India.

Adding to Deshpande, Vitor Silva, President, Africa, India and Middle East (AIM), Michelin, said, “We see this as the perfect time for Michelin to complement that shift with tyres that deliver technology, safety, comfort and long-lasting performance. While we have been manufacturing truck tyres here for more than a decade, we will now also focus on passenger car tyres. Until now, we have been serving the segment largely through imports. But we believe the market dynamics have shifted and this is the right time to localise production.”

In line with this, the Chennai plant will also focus on premium passenger car tyres ranging from 16-inch to 22-inch sizes. According to Deshpande, the market is currently estimated at 10–12 million tyres and is expected to grow to 17–18 million by the end of the decade, making the investment not only timely but essential.

The plant will churn out its most advanced range – LTX Trail ST, Pilot Sport 4 SUV, Pilot Sport 5 and Primacy 5 tailored for the Indian market. The Michelin Primacy 5 will be the first tyre to roll out.

In the coming months, the tyres will undergo homologation and certification processes with BIS and other authorities. Once approved, the first Michelin passenger car tyres will be made available to Indian consumers. While no fixed deadline has been set, the commercial availability of these tyres is expected during the first half of the next year.

Michelin is structured into nine regions for business management purposes. Regarding India’s role in the wider region such as Africa, and the Middle East, operations have been designed to serve both as a production hub and a centre of excellence. The Indian facility will not only cater to domestic demand but will also strengthen Michelin’s position across the region through supply, innovation and talent development.

Its technology centre in Pune was described as one of the most important hubs for the group in the field of artificial intelligence (AI). In addition, strong capabilities in research and development, digital services, IT and corporate functions have been developed there.

India also has been positioned as a centre where talent is nurtured, contributing not only to Michelin globally but also to consumers worldwide through products designed locally.

“Tyres for North America and Europe have been designed in India and around a hundred AI proof-of-concept projects have been initiated, tested and are planned for eventual global deployment. The country is also a key source of raw materials for global operations. Michelin in India represents more than tyres, symbolising innovation, supply chain strength and talent development,” said Silva.

MANUFACTURING PROWESS

The Chennai plant, operational for 12 years, is among the most sustainable in India and globally of Michelin. It is a zero liquid discharge facility with 80 percent of water consumption recycled and 100 percent of waste reused.

By 2024, 45 percent of materials used to make tyres at the Chennai plant were renewable and recyclable, exceeding the global target of 50 percent by 2030. Forty-five percent of electricity comes from green sources, supported by infrastructure investments such as the 2022 solar facility.

AI is integrated into daily operations, analysing machine performance, monitoring quality and supporting decision-making. These tools are accessible to both engineers and frontline operators.

Currently, the plant’s installed capacity is 54,000 tonnes with flexibility maintained to align production with fluctuating demand as tyre weights vary from 7–8 kilogrammes for 16-inch tyres to 15–16 kilogrammes for 22-inch tyres. Inventory constraints prevent storing six months’ worth of tyres, requiring production and demand to be closely synchronised.

“At Michelin, we homologate products based on the conditions of each region. That means the tyres made and sold in India are essentially the same as those sold globally but validated to perform in Indian conditions. So rather than a separate India-only tyre line, we bring world-class products that are equally well-suited to Indian roads,” contended Silva.

Flexibility has been built into the production lines, allowing a mix of products to be manufactured on the same machines.

Primary focus is given to serving the local market as the industry was regarded as highly complex. While some volumes may be exported and others imported, priority is assigned to the Indian market.

When asked about the impact of starting passenger car tyre production on the OEM segment, Deshpande explained that several large truck manufacturers, including Ashoke Leyland, Volvo, Mercedes and Scania, are already being served.

Regarding the passenger car segment, the focus has been on the replacement market. While several imported cars including the Hyundai Ioniq and multiple Mercedes-Benz models already come equipped with Michelin tyres, OEM engagement in this segment is planned for the future, though replacement currently remains the priority.

Commenting on raw material procurement from India, Silva stated that India is also leveraged as a supplier of raw materials for Michelin’s global factories. Carbon black, natural rubber and chemicals are procured locally. This approach emphasises not only production and services from Pune but also the utilisation of India’s industrial ecosystem to support the company’s worldwide supply chain.

Specific materials sourced from India include carbon black, chemicals, steel and other items, all of which must meet Michelin’s strict quality and pricing standards.

“Beyond materials, India also contributes significantly in terms of engineering. At the Chennai plant, a dedicated engineering division has been established to develop machines for our global operations. Certain machines are designed and manufactured in India before being shipped worldwide. Additionally, specific components for global operations are already being produced in India,” said Florent Chaussade, Executive Director, Michelin Chennai.

RETAIL SCOPE

Deshpande emphasised that the company’s focus extends beyond production to transforming the consumer buying experience. A state-of-the-art experience shop was recently inaugurated in Nashik. Premium retail environments are being ensured through clean shops, ample parking, advanced equipment and well-informed staff capable of clearly communicating Michelin’s superior value.

To strengthen the retail network, the Michelin Tyre Service (MTS) network is being expanded. Seventy-five MTS outlets currently operate across India, primarily in metro cities, with plans to establish Michelin Tyre Stores as the benchmark for tyre retail experience nationwide.

On online sales, the company’s approach is two-fold. “Pure e-commerce retail remains negligible in India, but the research online, purchase offline trend is significant. Efforts have been made to ensure accurate digital presence, guiding consumers on suitable tyres,

availability and recommended outlets. This strategy is aimed at aligning the online-to-offline journey with the premium performance of our products, recognising that Indian consumers are tech-savvy yet accustomed to traditional purchasing,” divulged Deshpande.

To communicate safety, comfort and performance to price-sensitive consumers, Michelin has launched a dealer digital programme, enhancing dealers’ online presence to provide accurate brand and outlet information.

Inside outlets, experience shops display simple ‘reasons to believe’, demonstrating value propositions such as lower rolling resistance and superior braking performance. Dealers and technicians are continuously trained to deliver consistent performance, comfort and safety.

“The approach is ongoing and comprehensive, combining digital engagement, premium retail environments, interactive demonstrations and continuous skill development to elevate both the product and the overall ownership experience,” Deshpande added.

MARKET WATCH

The company’s truck and bus radial (TBR) business in India has evolved in recent years to target customers and fleets that value total cost of ownership (TCO). The strategy is centred on tubeless truck tyres, particularly energy-efficient models.

“Around 60 percent of a fleet’s operating cost is fuel, and our Multi Energy Z + tubeless tyres are reported to save 8–10 percent in fuel compared with traditional tube-type radials, directly benefiting the fleet’s bottom line,” contended Deshpande.

He added, “Although the segment remains relatively small, leading coach operators are already 100 percent tubeless. New-generation fleet owners increasingly prioritise TCO and are driving the transition. Demanding fleets such as Delhivery, which operates trucks 16–17 hours daily, covering 20,000 km per month, choose us for reduced downtime, fuel savings and extended tyre life. Other major clients include ITS, DGFC and Best Roadways. In 2022, the Chennai plant produced India’s first four-star rated energy-saving tyre, marking a national milestone.”

Regarding market share, only 10–12 percent of trucks currently run on tubeless tyres, while the rest remain tube-type, explained the executive.

On the two-wheeler front, Michelin already sells locally manufactured tyres through outsourcing arrangements. Fastest growth is observed in the over 350 cc motorcycle segment driven by higher disposable incomes and improved infrastructure, mirroring the SUV boom in passenger cars.

When asked about India’s potential global role amid geo-political shifts including trade barriers, tariffs and overcapacity in countries such as China, it was stated that Michelin’s vision is to operate local-to-local wherever possible.

“The tyre supply chain is highly interconnected with nearly 200 materials used in a single tyre, making it impossible to source everything from a single location. Efforts are focused on reducing raw material intensity, increasing the proportion of renewable inputs and minimising environmental impact through green factories and cleaner materials,” concluded Silva.

Michelin’s India strategy integrates local manufacturing, sustainable practices and advanced consumer engagement to build long-term value.

Omni United has announced the appointment of Dr Mika Lahtinen as Associate Vice-President for Raw Materials and Compounding. The appointment is intended to internalise expert-led design and performance for the rubber compounds used in the company’s flagship brand, Radar Tires.

Dr Lahtinen joins the Singapore-headquartered firm with over 20 years of experience in tyre material innovation. He previously led material development at Nokian Tyres and managed global technology for tyre oils at Nynas, operating across Finland, Sweden and Singapore.

He holds a PhD in Polymer Materials Technology, and at Omni United, he will be involved in the development of materials and compounds, as well as collaboration with global suppliers to advance the company's tyre technology.

The move is designed to provide the manufacturer with direct control over the chemical engineering of its products. Omni United, founded in 2003, markets a range of consumer and commercial tyres under brands including Radar Tires, Patriot Tires and RoadLux.

Omni United sells products in more than 50 countries. Its primary brand, Radar Tires, has been manufactured as a carbon-neutral product since 2013. The integration of in-house compounding expertise is expected to support the company's commitment to innovation and logistics solutions within the global automotive sector.

In an statement the company stated, ‘Bringing Mika’s expertise in-house is a strong addition to our team. It allows us to take a more direct, expert-led approach to the design and performance of Radar Tires’ rubber compounds. With over 20 years in tyre material innovation, Mika has an extensive background in developing breakthrough materials, developing cutting-edge compounds, and collaborating with global suppliers to advance tyre technology.’

Continental has further strengthened its foothold in the electric mobility sector, with its original equipment tyres now featured on the 10 highest-volume electric vehicle manufacturers in the Europe, Middle East and Africa (EMEA) region for 2025. This achievement highlights the tyremaker’s strategic commitment to the expanding e-mobility market. Worldwide, the Hannover-based company supplies tyres to 17 of the 20 largest electric vehicle producers, including a mix of premium and volume brands such as BYD, Volkswagen, Stellantis, BMW, NIO, Hyundai and Renault. In the Americas, Continental currently equips eight of the top 10 manufacturers, while in the Asia Pacific region – the most dynamic market – it supplies seven of the top 10. The Chinese market remains especially fluid, with new high-volume players emerging in the rankings over the past year.

Electric vehicles impose distinct demands on tyres. Their heavier weight, due to large batteries, and the instant torque delivered during acceleration contribute to increased tyre wear. Moreover, because these vehicles operate more quietly than traditional combustion-engine cars, tyre rolling noise becomes more perceptible. Continental anticipated these challenges early, focusing on developing tyres with low rolling resistance, reduced noise and long mileage, regardless of the powertrain. The company introduced its first energy-efficient tyre line in 1993 with the ContiEcoContact, and the latest iteration, the EcoContact 7, is now available.

This new model incorporates aerodynamic enhancements, including a golf ball-inspired ‘aerodimple’ structure on the sidewalls, which minimises air turbulence and improves energy efficiency. Such features make it well-suited for both electric and conventional vehicles. Global electric vehicle sales continue to rise, with the Fraunhofer Institute for Systems and Innovation Research projecting a 23 percent increase in battery-electric vehicle sales for 2025, reaching 12.7 million units. The Asia-Pacific region, led by China, remains the dominant market with double-digit growth, while Europe follows as the second largest. North America saw registrations hold steady at 1.4 million vehicles.

Dennis Bellmund, responsible for the global original equipment business at Continental Tires, said, “The EMEA region confirms the success of our strategy. We began designing our passenger tyres for low rolling resistance, quiet rolling noise and high load capacity very early on. These properties are especially important for electric vehicles.”

Antonio Tulio Jou Inchausti has stepped into the role of Chief Executive Officer at Unique Rubber Technologies, taking charge at a pivotal moment as the company sharpens its focus on innovation, operational discipline and long-term growth in the global retreading industry. Speaking exclusively to Tyre Trends, he unfolds the forward path.

What are the first three strategic priorities you plan to redefine Unique Rubber Technologies in your first 12–18 months as CEO?

Focus will be strengthening what truly sustains the company viz-a-viz our people, culture and responsibility for the future. The safety of our teams comes first, and throughout 2026, we are implementing a robust SafeStart programme to further embed a culture of care, prevention and accountability across the organisation.

At the same time, we will continue to invest strongly in the development of our people, empowering them to deliver their best every day and reinforcing talent as a key pillar of our success. These priorities support our sustainable growth journey, honouring the legacy of the 50 years we have recently completed while preparing the company for its next phase of evolution, guided by consistency, purpose and long-term vision.

Where do you see the company under-positioned today and how do you intend to close that gap?

Unique Rubber Technologies is well positioned as one of the most relevant players in the retreading market in Latin America, holding leadership positions through its Tipler and Borex brands. Our continuously expanding dealer network delivers strong value to the market by offering products and services recognised for its high quality, reliability and outstanding mileage performance, exactly what end customers expect from our solutions.

Looking ahead, our focus is on expanding into new and complementary markets, growing alongside our existing customers while also addressing opportunities in product segments where we see room to evolve through innovation and embedded technologies in our processes.

How do modern manufacturing and retreading heritage come together in your value proposition?

We are proud to operate one of the most modern manufacturing facilities in the industry, which reinforces safety, consistency and product quality. At the same time, we remain committed to preserving and advancing the company’s legacy by promoting the efficient use of natural resources, inherent to our retreading processes, and by contributing to lower transportation costs through products that combine high mileage performance, safety and reliability.

How will you balance research and development ambition with cost discipline and time-to-market pressures?

Innovation at our company is guided by a disciplined and long-term approach. Our research and development teams continuously monitor developments not only in the domestic market but also in key international markets, ensuring we remain aligned with the most advanced product concepts, equipment and manufacturing technologies available globally.

At the same time, we consistently optimise our processes to maintain a cost structure that is well aligned with market demand, allowing us to remain competitive while accelerating time to market. Our perspective is not short-term; we regularly review our strategic planning with a five-year horizon, focusing on improvements that will translate into superior products and services over time.

How do you balance innovation with market needs to deliver consistent performance?

We firmly believe that high-quality products delivering superior mileage and performance will always earn customer preference and balancing innovation with market needs, execution discipline and sustainable results is at the core of how we continue to move forward every day.

What specific inefficiencies in operations or supply chain have you already identified and what measurable improvements should stakeholders expect?

As with any industrial operation operating at scale, there are always opportunities to improve efficiency and our focus has been on identifying areas where greater integration, predictability and agility can be achieved across operations and the supply chain.

We have already identified opportunities to optimise process flows, reduce variability and strengthen coordination with key suppliers, leveraging data, standardisation and better planning tools. These initiatives are designed to improve lead times, increase reliability and enhance overall operational efficiency without compromising quality or safety.

What measurable improvements can stakeholders expect from this strategy?

Stakeholders can expect measurable improvements in service levels, operational consistency and cost efficiency over the coming cycles as well as a more resilient supply chain capable of supporting our growth strategy. Our approach will be focused on delivering tangible results and keep building a continuous and stronger operational foundation for the future.

How will your approach to client engagement differ from the previous co-CEO model, particularly with global OEMs and strategic partners?

Approach to client engagement is built on continuity while further strengthening clarity, consistency and proximity in how we engage with our customers and partners. The company has established strong relationships over the years and my role as CEO is to enhance those connections through more direct and structured strategic dialogue, particularly with global OEMs and key strategic partners.

We will ensure closer alignment between our commercial, technical and operational teams, enabling faster decision-making and a more cohesive value proposition across markets. Beyond transactional interactions, our focus is on deepening long-term partnerships through collaboration, joint development initiatives and shared growth agendas.

With the former co-CEOs remaining active in governance bodies, how will decision-making authority be clearly defined to avoid strategic overlap or delays?

The transition to a single-CEO model is supported by a well-defined governance structure that clearly separates strategic oversight from executive decision-making. While the former co-CEOs continue to contribute through governance bodies, their role is focused on guidance, continuity and long-term perspective, rather than day-to-day management.

Executive authority and accountability are clearly defined within the leadership team, enabling agile, timely and consistent decision-making. This structure ensures strategic alignment without overlap, preserves institutional knowledge and allows us to move forward with clarity, speed and discipline, fully aligned with our long-term objectives and growth strategy.

Will future growth come from expansion, new products or deeper market penetration?

Our future growth will be driven by a balanced combination of geographic expansion, innovation in product platforms and deeper penetration in existing markets. We see significant opportunities to strengthen our presence where we already operate by expanding our portfolio, increasing customer proximity and extracting more value from established relationships.

At the same time, we will selectively pursue geographic expansion into markets that align with our capabilities and long-term strategy. Innovation remains a key enabler across all fronts, allowing us to develop new product platforms and solutions that respond to evolving customer needs and regulatory requirements. This diversified growth approach provides resilience, scalability and consistency, ensuring that the company continues to grow in a disciplined and sustainable manner.

How prepared is the company to meet stricter regulatory and ESG demands?

Sustainability is deeply embedded in our business model and operational practices, well beyond branding or positioning. Our retreading solutions inherently contribute to the efficient use of natural resources and lower environmental impact, which places us in a strong position to meet increasingly stringent regulatory and ESG requirements.

We continuously invest in safer, more efficient processes, advanced technologies and responsible sourcing to ensure compliance with evolving regulations across the markets we serve. At the same time, we work closely with customers to align our products and services with their sustainability and compliance mandates, offering solutions that combine environmental responsibility, safety, performance and economic value.

Which competitors or substitute technologies pose the biggest threat to your business model over the next five years?

Rather than focusing on individual competitors, we closely monitor broader industry dynamics and substitute technologies that could influence customer choices over the next five years.

The main competitive pressure comes from solutions that promise lower upfront costs or alternative lifecycle approaches, even if they do not always deliver the same levels of performance, safety or sustainability over time.

How does the company turn industry and regulatory shifts into competitive advantage?

Our business model is built on proven technology, high-quality products and superior mileage performance, which continue to be highly valued by customers focused on total cost of ownership and operational efficiency.

We remain attentive to technological shifts, regulatory changes and evolving mobility trends and we continuously invest in innovation, process optimisation and product development to ensure our solutions remain relevant and competitive. This proactive and disciplined approach allows us not only to mitigate potential threats but also to turn industry evolution into opportunities for differentiation and long-term growth.

How will you define success in this role?

I will define success in this role by the strength and sustainability of the organisation we continue to build. Success means a company where people feel safe, engaged and empowered, where customers recognise us as a trusted and long-term partner and where our products consistently deliver quality, reliability and performance.

It also means advancing the company’s strategic objectives with discipline, clarity and consistency while preserving the values and legacy built over the past 50 years. Ultimately, success will be reflected in the company’s ability to grow responsibly, adapt to change and create lasting value for customers, employees and all stakeholders.

Alberta Recycling Management Authority (ARMA) has announced the appointment of Vahid Rashidi as its new Vice President of Extended Producer Responsibility (EPR). The leadership addition marks a strategic step in the organisation's ongoing evolution to better serve the needs of Albertans.

Rashidi brings extensive experience and strategic vision to the role, with a strong track record in driving impactful results. His appointment underscores ARMA’s commitment to navigating complex regulatory systems and strengthening its leadership capacity. He is expected to play a pivotal role in advancing the organisation’s EPR initiatives and reinforcing its dedication to sustainability and compliance excellence.

His results-oriented approach aligns with ARMA’s mission to deliver responsible solutions for industries and communities across the province. The organisation anticipates that his leadership will accelerate progress towards its goals, inspire internal teams and help position ARMA for continued success within a shifting regulatory landscape. The appointment has been met with enthusiasm as the authority looks to build on its momentum in environmental stewardship.