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.

Balkrishna Industries Ltd (BKT) reported record quarterly sales volumes in its core off-highway tyre (OHT) business in the first quarter of FY27, supported by robust demand across India, Europe and the Americas, even as rising raw material costs, freight inflation and geopolitical disruptions squeezed margins.

The company posted 16 percent year-on-year growth in OHT sales volumes to 93,770 metric tonnes, while standalone revenue rose 24 percent to INR 34.09 billion. EBITDA increased to INR 7.03 billion, representing an EBITDA margin of 20.61 percent, while profit after tax reached INR 4.32 billion.

"Q1 started on a positive note for us. We delivered our highest quarterly sales volume in the OHT segment," Rajiv Poddar, Joint Managing Director, said. He noted that the performance came "despite the challenges across many international geographies and end markets, as well as within the supply chain of the world", highlighting the resilience of demand across key markets.

Management said profitability was affected by higher raw material prices stemming from global supply chain disruptions and geopolitical tensions, although the impact was partly offset through price increases introduced during the quarter.

BKT accelerates investment programme

BKT continues to advance one of the largest expansion programmes in its history.

The company has already invested approximately INR 38 billion under its broader INR 68 billion capital expenditure programme, with around INR 30 billion yet to be deployed. Of the remaining investment, INR 15-20 billion is expected to be spent during FY27 after capital expenditure of about INR 10 billion in the first quarter.

Completed projects include:

• Commissioning the second phase of its carbon black facility at Bhuj, increasing annual capacity to 360,000 tonnes, with an investment of INR 8 billion.
• Expanding captive power generation capacity from 40 MW to 64 MW, involving an investment of INR 1.25 billion.

"All the balanced CapEx projects, which are amounting to approximately INR 30 billion, are progressing as per schedule,” added Poddar.

On-highway business begins commercial rollout

Beyond its dominant OHT franchise, BKT has formally entered India's truck and bus radial (TBR) and two-wheeler tyre markets.

The company began commercial supplies after establishing its distribution network during the quarter and reported encouraging initial customer response. Although management declined to disclose revenue or volume figures given the early stage of the business, it expects sales to begin ramping up from the second quarter. "Having seeded the business in Q1, we expect a gradual ramp-up starting in Q2," Poddar said.

The long-term target remains INR 50 billion in on-highway tyre revenue by 2030. Satish Sharma, Senior President and Director of Strategy and Business Development, said FY27 would focus on expanding the portfolio before accelerating growth. "The vision statement states that INR 50 billion revenue from on-highway tyres by 2030. We're standing on that figure... FY 2028 onwards will be serious business."

India becomes larger contributor

India accounted for 40 percent of total volumes during the quarter, driven by demand from agriculture, construction, mining and industrial applications. Management said infrastructure investment and market share gains continue to support domestic growth, although margins in India remain marginally below export markets.

BKT estimates its market share at 18-19 percent in India, 7-8 percent in Europe and 3-4 percent in the United States, with inventory levels across key markets remaining normal.

Management also expects the US business to recover to its historical contribution of 15-16 percent of revenue, supported by improved tariff clarity and stronger brand positioning.

Inflation remains the principal challenge

BKT introduced approximately 5 percent price increases during the first quarter, with the full benefit expected to be realised in Q2. "We have taken on a price hike of about 5%, scattered across the various parts of the quarter. You will see the full passthrough coming in this quarter," Poddar said.

However, management said raw material costs have also increased by around 5 percent, potentially reducing margins by roughly 2 percentage points despite the pricing action.

Freight costs currently represent about 5 percent of revenue, with executives warning that continuing geopolitical tensions could lead to further increases.

The company also identified supply chain disruptions, vessel availability, container shortages, weather conditions in Europe and monsoon variability in India among the principal risks for the coming quarters.

Cabot Corporation has announced a significant leadership transition, with President and Chief Executive Officer Sean Keohane set to retire from his roles and step down from the Board of Directors, effective 30 September 2026. The company has elected Executive Vice President, Chief Financial Officer and Head of Corporate Strategy Erica McLaughlin to succeed him. McLaughlin will assume the positions of President and CEO, in addition to joining the Board as a member of the class whose term concludes at the 2029 Annual Meeting of Stockholders, effective 1 October 2026.

To facilitate a seamless handover, Keohane will remain with Cabot in an advisory capacity through the end of the 2026 calendar year. Concurrent with McLaughlin’s elevation, the company has initiated a formal search process to identify her replacement as Chief Financial Officer.

McLaughlin brings over two decades of experience to her new role, having joined Cabot in 2002 and holding various senior leadership posts across finance, strategy and the Reinforcement Materials division. Since assuming her current position in 2018, she has been instrumental in shaping corporate strategy and driving operational discipline. Her prior roles included Vice President of Business Operations for Reinforcement Materials, General Manager of its tire business and Vice President of Investor Relations. Beyond Cabot, she contributes her expertise as a board member for Azenta Life Sciences and as an advisor to FM Global.

Keohane’s distinguished tenure spans nearly 25 years, with his service as President and CEO beginning in 2016. His leadership was marked by significant portfolio refinement, the strengthening of core businesses, and the successful expansion into battery materials. He also advanced the company’s sustainability agenda and commitment to operational excellence, delivering robust performance and sustained shareholder value throughout his career.

Board Chair Michael Morrow said, “Erica brings deep industry expertise and a strong understanding of Cabot’s businesses, markets and global operations. This experience, coupled with her commitment to the company’s long-term strategic priorities, positions her exceptionally well to lead Cabot. Our decision to appoint Erica as the next President and CEO reflects a thoughtful and deliberate succession planning process. Her deep knowledge of the organisation and commitment to the values and culture that have been integral to Cabot’s success will provide continuity as we execute this leadership transition. We believe she brings the leadership, discipline and strategic clarity needed to lead Cabot forward and deliver on our long-term vision.

“The Board is deeply appreciative of Sean’s exceptional leadership and distinguished career at Cabot. We extend our congratulations on a well-deserved retirement. During his tenure as CEO, Sean provided strong, steady and thoughtful leadership, focusing the company’s portfolio around its core businesses and advancing new strategic long-term growth priorities. His collaborative leadership style has strengthened our organisation and leadership team, leaving a strong foundation for continued success in the years ahead.”

McLaughlin said, “I am deeply honoured to succeed Sean as President and CEO and lead Cabot into our next chapter. Having been at Cabot for close to 25 years, I know firsthand the strength of our people and our businesses. I look forward to working with the Board and our global team to build on our success, grow the company by supporting our customers with innovative chemistry solutions to advance their businesses and create value for our stockholders.”

Keohane said, “It has been a tremendous privilege to lead Cabot and to work alongside such a talented and dedicated global team. I am incredibly proud of what we have accomplished together and the foundation we have created. I am confident Cabot is in excellent hands under Erica’s leadership. We have worked side by side for almost my entire tenure as CEO and I have seen first-hand her strong leadership, operational discipline and sharp strategic mind. Erica is a trusted and highly capable leader with deep knowledge of our business and a commitment to our people, the culture and the unique heritage of this great company. I look forward to supporting a seamless transition in the months ahead.”

Robin Wiener, President of the Recycled Materials Association (ReMA), has been appointed to the Board of Directors of the Tire Recycling Foundation (TRF). Her appointment recognises her leadership within both the recycled materials and tyre manufacturing sectors. In this new capacity, Wiener will support the Foundation's mission to enhance the tyre recycling supply chain and foster the growth of innovative markets for recycled tyre materials.

TRF, a joint initiative led by the U.S. Tire Manufacturers Association and the Tire Industry Association, aims to drive circularity and sustainability in the US tyre recycling industry. Wiener joins a board of global industry leaders dedicated to securing funding and allocating grants for critical research and demonstration projects.

Apollo Tyres Chairman Onkar S. Kanwar has said the company remains focused on disciplined execution, sustainability and long-term value creation as it navigates geopolitical uncertainty, changing trade dynamics and a challenging global business environment.

Addressing shareholders at the company's 53rd Annual General Meeting (AGM), Kanwar said FY26 had been a year that tested businesses worldwide, but Apollo Tyres had continued to strengthen its financial performance while investing for future growth.

"The future is not something we inherit. It is something we create through the choices we make every day," Kanwar told shareholders, quoting Mahatma Gandhi's observation that "The future depends on what we do in the present."

Apollo Tyres reported consolidated revenue of INR 284.71 billion for FY26, crossing the INR 280 billion milestone, while operating profit rose to INR 41.43 billion. Kanwar said the company's focus extended beyond financial performance to improving capital efficiency, operational discipline and profitable growth.

"Every important decision we take is driven by one simple question: Are we building a stronger company for tomorrow?" he said.

Kanwar also highlighted the company's efforts to strengthen the Apollo Tyres brand through its association with the Indian national cricket team, describing the partnership as one that reflected Apollo Tyres' values of resilience, determination and excellence rather than merely serving as a branding exercise.

Sustainability remained central to the company's strategy, he said, noting that Apollo Tyres' greenhouse gas emission reduction targets had been validated by the Science Based Targets initiative (SBTi), reinforcing its commitment to achieving net-zero emissions by 2050.

The company continued to expand the use of renewable energy while improving responsible sourcing and resource efficiency across its operations, Kanwar said. "Sustainability is no longer a separate agenda for Apollo Tyres; it has become an integral part of how we innovate, manufacture and grow."

Kanwar credited employees for the company's performance, describing their commitment and adaptability as the foundation of Apollo Tyres' continued progress. He also acknowledged the support of governments and institutions across the markets where the company operates.

He singled out Hungary as a key manufacturing base in Europe, saying Apollo Tyres' plant at Gyöngyöshalász reflected the benefits of long-term collaboration with the Hungarian government.

Looking ahead, Kanwar expressed confidence in the company's growth prospects, citing India's expanding market opportunities and Apollo Tyres' international manufacturing and distribution footprint.

"Uncertainty will always be a part of business, but organisations that remain true to their values, continue to innovate and invest responsibly will be best placed to succeed," he said.

Thanking shareholders, customers, dealers, suppliers, financial institutions and government partners for their continued support, Kanwar said Apollo Tyres remained committed to building "a company that is stronger, more resilient and more responsible with every passing year."