Michelin India is doubling down on the country’s fast-growing premium tyre segment, a niche yet rapidly expanding market. The company, which has been manufacturing radial commercial tyres at its Chennai plant, is now investing over INR 5.64 billion in a brownfield expansion to produce passenger car radial tyres at the same facility.

Today, Michelin India is not just a manufacturing hub but also a critical part of the global Michelin ecosystem, housing the company’s world AI headquarters and a state-of-the-art R&D centre, growing from a modest operation with fewer than 100 employees to a total workforce of nearly 3,000.

In an exclusive interview with Tyre Trends, Shantanu Deshpande, Managing Director, Michelin India, touches upon the company’s strategic priorities, the evolving tyre industry and its ambitious plans for the premium and electric vehicle (EV) segments.

He also sheds light on Michelin’s sustainability initiatives and how the company is leveraging India’s growing infrastructure and consumer preferences to solidify its position as a market leader in the premium segment.  The premium proposition:

Catering to discerning consumers

When Michelin first entered the Indian market, it was a niche player with a limited presence. The company’s initial focus was on introducing radial tyres to a market dominated by bias tyres. Over the years, Michelin has not only expanded its manufacturing footprint but also cemented its position as a leader in the premium tyre commercial tyre segment. 

“We started with TBR tyres (Truck and Bus Radial) over a decade ago,” Deshpande recalls. “Back then, the industry was dominated by bias tyres. Today, radial tyres account for almost 70 to 80 percent of the market, and we’re now seeing a shift from tube-type to tubeless tyres. This transformation has been driven by infrastructure improvements and the rise of e-commerce, which demands faster, more efficient logistics.” 

Currently, tubeless tyres have a 5-10 percent market share, while tube tyres own the rest.

Deshpande highlights the dramatic changes in India’s road infrastructure as a key driver of this evolution. “When I was a sales executive, the Delhi-Mumbai corridor took eight days to traverse. By the end of this year, it will take just 24 hours. Truck speeds have increased from 25-30 km/h to 40-50 km/h, and soon, they’ll reach 60 km/h, comparable to Europe. These changes have created a demand for high-performance tyres that can handle heavy loads and long distances,” he explains.

The rise of e-commerce has further accelerated this demand. “Some fleets are running 25,000 kilometres per month,” Deshpande notes. “This is a significant distance for trucks, and it underscores the need for tyres that offer durability, fuel efficiency and safety.” 

Michelin’s focus on premium tyres has been a cornerstone of its strategy in India. Deshpande emphasises that the company’s value proposition lies in offering a lower total cost of ownership (TCO) for fleet operators, particularly in the TBR segment. 

“Fuel accounts for 60 percent of a truck operator’s costs,” he explains. “Michelin intends to work with like-minded fleet operators who understand the value proposition of TCO. We are changing their tube radial tyres to tubeless radial tyres. For instance, our X Multi Energy Z+ tyre, with the lowest rolling resistance in the country, can save up to 15 percent on fuel compared to traditional tubeless radial tyres. This is a game-changer for fleet operators who understand the importance of TCO.”

Cost per kilometre Vs total cost of ownership

Deshpande elaborates on Michelin’s approach to cost per kilometre (CPK) and total cost of ownership (TCO), which are critical metrics for fleet operators.

“Cost per kilometre is one way to simplify invoicing, but it’s not the complete picture,” he explains. “While CPK focuses on the life of the tyre, we believe in a broader approach – total cost of ownership. A Michelin tyre not only lasts longer but also saves fuel, which is a significant cost for fleet operators. It’s important to look at the overall savings, not just the tyre’s lifespan.”

Michelin offers innovative service models to fleet operators, including on-site maintenance and diagnostics. “We have models where technicians are stationed at fleet yards,” Deshpande says. “We provide free diagnostics to identify issues like under-inflated or misaligned tyres, which can significantly impact costs. We then offer maintenance services to ensure optimal performance, and this is a paid service – it’s not free. We work with fleets to show them the cost savings we can bring per-truck, per-month basis.”

The company also invests in equipment like tyre fitting and alignment machines at fleet yards. “We bear these costs into our service offerings,” Deshpande adds.

Premium passenger radial tyres: New target

In the passenger vehicle segment, Michelin is targeting the growing demand for premium and luxury cars.

In September 2024, Michelin India entered the passenger car radial tyre market with the launch of an INR 5.64-billion brownfield project in Thervoy kandigai, near Chennai. “This investment is over and above the existing investment of INR 28.40 billion for the company in our factory,” adds Deshpande

“We believe there is significant potential in the passenger segment for several reasons. Over the last three years, the vehicle landscape in India has significantly changed,” Deshpande says. “Today, most new SUVs and cars are being launched with bigger tyre sizes, such as 16-inch or 17-inch. This shift aligns perfectly with our focus on premium tyres.”

According to Deshpande, the shift towards premium products extends beyond automobiles. “There is a growing demand for premium products across all walks of life, not just automobiles. This includes two-wheelers, luxury bags and other high-end items. Consumers are willing to pay for quality,” adds Deshpande.

Deshpande points to the changing profile of Indian consumers as a key factor driving this trend. “The Indian consumer is evolving,” he says. “Ten years ago, a Mercedes owner was typically an industrialist or a Bollywood star. Today, young professionals in their 30s are driving BMWs and Mercedes. Last year, close to 50,000 cars priced above INR 50 lakh were sold in India, and we expect this number to double soon.” 

Improved road infrastructure has revolutionised leisure travel habits. “10 to 15 years ago, travelling from Mumbai to Delhi by car was uncommon. It’s possible to drive from Mumbai to Nagpur in eight hours today,” Deshpande said. “People now prefer driving long distances rather than flying, which has significantly changed how consumers view their cars.”

Michelin’s Chennai plant is strategically focused on producing tyres for this premium segment. “We will soon begin manufacturing car tyres in India. The size range will be 16” and above,” Deshpande says. “Our goal is to cater to the top 25-30 percent of consumers who value quality and are willing to pay for it.”

The company’s retail distribution strategy is equally focused on maintaining a premium experience. “A Michelin customer, such as a BMW owner, expects nothing less than a premium experience,” Deshpande explains. “We’re not aiming for a vast network of dealers. Instead, we’re focusing on well-branded shops that offer a superior consumer experience.” 

The company plans to open its premium retail shops for passenger car tyres in the top 15 to 20 cities to cater to the replacement market.

The EV opportunity: Balancing performance and sustainability

As the automotive industry shifts towards electrification, Michelin is positioning itself as a leader in EV tyres, and Deshpande also acknowledges the unique challenges and opportunities this transition presents. 

“EV tyres require specific designs, such as low rolling resistance and larger diameters,” he explains. “But it’s not just about range. Load-carrying capacity, noise reduction and durability are equally important. Michelin has mastered the art of balancing these performance criteria.” 

Deshpande dispels the misconception that EV tyres are fundamentally different from those used in internal combustion engine (ICE) vehicles. “Some of our tyres are excellent for ICE vehicles but even better for EVs,” he says. “We don’t design tyres purely for range. Instead, we ensure they deliver the right balance of performance, safety and comfort.” 

Michelin’s approach to EV tyres is already yielding results. “The tyres we’ve designed for ICE vehicles are being adopted by EV manufacturers globally,” Deshpande reveals. “In India, as the EV market grows, we’ll leverage our global expertise to cater to this segment.” 

Sustainability at the core

Sustainability is a key pillar of Michelin’s strategy, both globally and in India. The company’s Chennai plant is a zero-discharge facility that recycles all its water through rainwater harvesting. By the end of this year, the plant will be powered entirely by renewable energy. 

Deshpande asserts,” Our Chennai plant is one of the most high-tech and green facilities in the Michelin world. It’s a benchmark for safety, modernity and environmental responsibility.” 

The tyres manufactured in Chennai are exported to North America, Europe, Africa and the Middle East.

Michelin’s commitment to sustainability extends beyond its manufacturing processes. The company also focuses on developing tyres that increase fuel efficiency and reduce emissions. “Our X Multi Energy tyre, for instance, has a rolling resistance of just 4.5 kg per tonne, compared to the industry average of 6.5-7 kg per tonne,” Deshpande says. “This translates to significant fuel savings and a lower carbon footprint.” 

Premium two-wheeler segment: Another growing opportunity

Michelin India continues its presence in the two-wheeler tyre segment through a manufacturing arrangement with STL (Spinmax tyres Pvt Ltd) via an offtake arrangement.

 

Despite current import restrictions, the company eyes opportunities in India’s evolving motorcycle market.

“The two-wheeler segment is undergoing significant transformation,” says the Managing Director of Michelin India. “With the increasing launch of high-powered bikes like Royal Enfield and other global brands, along with Indian manufacturers producing world-class bikes for export, this segment presents a great opportunity.”

The company sees a natural overlap between its target markets. “The profile of consumers buying high-powered bikes often overlaps with those buying premium cars,” Deshpande thinks. Michelin plans to focus on motorcycles and scooters of 250 cc and above, where the company believes its brand visibility and value proposition are strongest.

The strategy mirrors Michelin’s approach in the passenger vehicle segment. The company maintains local outsourced manufacturing of two-wheeler tyres while exploring future expansion opportunities.

The French tyre maker continues to evaluate opportunities in India’s growing premium two-wheeler market as domestic manufacturers increasingly target global markets with higher-end models.

Michelin India: A place for global R&D & AI Centre

In addition to Michelin India’s manufacturing capabilities, it has also established a Global Hub in Pune focusing on next-generation technologies such as AI, data engineering, digital services and R&D centre, which supports research efforts for the Michelin Group worldwide.

Deshpande is also optimistic about the role of Indian R&D in Michelin’s global operations. “Our Pune centre is not just supporting India; it’s contributing to global markets,” he says. “The talent here is recognised for its innovation and expertise, not just cost arbitrage. At our Global Competency Center in the city, the company isn’t just optimising tyres but redefining how they’re designed, manufactured and used. This is a proud moment for us.”

As Deshpande puts it, “Michelin is not just selling tyres; we’re selling safety, comfort and peace of mind. In a market as dynamic as India, that’s a value proposition that resonates.”

Anshuman Singhania, Managing Director of JK Tyre & Industries, has been awarded the 'CEO of the Year' by the Top Rankers Management Club. The accolade was presented at the 25th National Management Summit, held in New Delhi on 23 August 2025.

The award recognises Singhania’s exceptional leadership and strategic vision, which have been pivotal in steering the company toward sustained growth and innovation. Under his guidance, JK Tyre has reinforced its position as a leader in radial tyre technology, expanded its global presence and strengthened its dedication to sustainability and customer focus.

In his acceptance speech, Singhania expressed his gratitude, stating, “I am honoured to receive this recognition from the Top Rankers Management Club. This award reflects the collective commitment of the entire JK Tyre team, whose efforts continue to drive our progress. I would like to thank my colleagues, industry partners and stakeholders for their unwavering support in our journey of growth and transformation.”

He has been a key figure in modernising the company, leveraging new technologies and expanding its presence in both domestic and international markets. The 'CEO of the Year' award, presented by the Top Rankers Management Club, celebrates leaders who demonstrate a clear vision for organisational excellence and industry transformation.

Hana Technologies, Inc. (Hana RFID) has strengthened its leadership in the Asian market with the appointment of industry veteran Jason Chang as Sales Director for Asia. Based in Shanghai, he will be responsible for managing key customer relationships and driving strategic growth throughout the region.

Chang brings a wealth of relevant experience to the role, with over 15 years in the RFID sector following a successful career in IT. His proven track record includes significant tenures at leading firms like Xerafy, Stora Enso and Beontag. His accomplishments range from pioneering the development of innovative flexible anti-metal tags to launching groundbreaking RFID-based retail solutions that gained widespread adoption in China and Europe. He has also demonstrated a strong capacity for growth, most recently achieving remarkable business expansion in the APAC market.

This appointment is a strategic milestone for Hana RFID, underscoring its commitment to supporting global customers with high-performance technology and expert, on-the-ground leadership. This move highlights Hana RFID's focused strategy on deepening its regional support and providing partners with sophisticated RAIN RFID inlay and embeddable tag solutions, backed by local expertise.

Mike Hetric, Senior Vice President – Sales & Marketing, Hana RFID, said, “The appointment of Jason Chang is a significant step forward in improving local availability and supporting our key partners in Asia. Jason’s track record in driving innovation, his deep market knowledge and his commitment to customer success will be invaluable as we expand our footprint in this dynamic region.”

Chang said, “I’m excited to be part of the Hana RFID team, which is recognised in the market as both a key player and a trusted partner for an ever-growing network of label converters, service bureaus and system integrators. I look forward to working alongside our partners in Asia to deliver innovative solutions and exceptional service.”

Ralson Tire North America (RTNA) has expanded its leadership team with the appointment of two seasoned tyre industry professionals.

As per the new development, Billy Dorsey Jr has been appointed as Vice President of Sales – South and Jamie McSwaney has been appointed as Vice President of Sales – North. Both the new appointments bring a combined 45 years of tyre industry experience to the company.

Brian Sheehey, President, RTNA, said, “These additions signal our unwavering commitment to accelerating Ralson’s growth in the US and Canada. We’re building a leadership team that knows how to compete, win and deliver results. Their deep industry relationships and ability to execute will be instrumental as we continue to grow our footprint in the North American trucking industry.”

Scandinavian tyre service provider Citira sees robust potential for premium tyres in the Nordic region, driven by seasonal demands and safety priorities. CEO David Boman highlights that premium tyres including Pirelli’s offerings hold a significant share in passenger car, light truck and truck tyre segments supported by harsh winter conditions that emphasise performance and reliability. Despite a slight recent decline amid broader economic pressures and rising price sensitivity, premium brands remain relevant. Citira’s new long-term partnership with Pirelli and acquisition of Dackia AB aims to consolidate and optimise premium tyre distribution across Sweden.

Scandinavian tyre service company Citira recently told Tyre Trends that Nordic countries have excellent potential for premium tyres during a discussion over its partnership with Italian tyre major Pirelli.

Speaking on the market potential, Chief Executive Officer David Boman said, “When it comes to the Nordic markets, Scandinavia in particular has a relatively high share of premium tyres across categories including passenger car, light truck and TBR segments. Compared to other global regions, the demand for premium tyres here is notably strong.

“One of the main reasons for this is the seasonal nature of our market. Winter tyres, in particular, drive a more premium-oriented approach because of the need for high performance and safety under harsh conditions. While we’ve observed a slight decline in the premium tyre share over the past few years, it still holds a significant portion of the market. This demand is closely tied to seasonal safety concerns, especially in winter, autumn and early spring. Drivers here prioritise safety and reliability, which naturally supports the continued relevance of premium brands like Pirelli.”

He noted that the decline is likely tied to broader financial challenges in the market, especially following the Covid period. Both consumers and companies have become more price-sensitive, making cost a bigger factor in purchase decisions.

As a result, there’s been a gradual increase in demand for lower-cost, imported non-European tyre brands, while the market share of European premium tyre brands has slightly decreased.

Pirelli and Citira have entered a long-term strategic partnership aimed at enhancing their market presence in Sweden. As part of the deal, Citira will acquire Dackia AB that has a network of 102 retail outlets from Pirelli.

In return, Pirelli and Dackia have signed a supply agreement extending to 2030, ensuring Pirelli remains the main tyre supplier. The transaction, pending regulatory approval, is expected to close by 2025. The partnership will boost Pirelli’s distribution and market coverage while supporting Citira’s goal of expanding a sustainable, flexible and high-quality customer service network.

THE PACT

Citira currently runs over 50 tyre shops and over five retreading units across Scandinavia and Poland. “Citira is actively working towards creating a more efficient and consolidated tyre market. While our current focus is primarily on the Scandinavian region, it’s not out of the question that we may consider expanding beyond this geographic perimeter in the future. This agreement is part of a broader industry trend where partnerships and acquisitions are used to enhance efficiency, strengthen distribution networks and provide end customers with better service coverage,” revealed Boman.

Nonetheless, the deal specifically pertains to the Swedish market, and as part of the regulatory process, Citira has conducted a market analysis to understand the potential implications on market share. However, the specifics of that study were said to be confidential and could not be disclosed prior to the official closing of the deal.

Explaining how this partnership will influence the supply chain of premium tyre in the Nordics, Boman said, “We do anticipate some changes, particularly within Citira. We operate a number of logistics centres, and this partnership presents an opportunity to optimise our overall supply chain setup. Enhancing logistics will be a key enabler of better service and responsiveness in premium tyre distribution.”

He added, “This particular deal is unlikely to have a direct or immediate impact on independent retailers or smaller distributors. More broadly, the Scandinavian tyre retail sector is undergoing consolidation. Several players are actively reshaping the competitive landscape and that trend could gradually influence the positioning of independents. But again, this specific acquisition is not a disruptive event in that context.”

Alluding to the current demand for replacement tyres, he said, “In general, the tyre market has proven to be quite non-cyclical. Even in challenging economic conditions, it tends to remain stable. That said, I believe we’re entering a phase where circularity and life-extension solutions will gain more momentum. We’re likely to see increased focus on services that extend tyre life, especially for larger fleets. This shift won’t just be driven by cost or fleet uptime concerns but increasingly by environmental responsibilities.”

THE BUSINESS

According to Boman, Pirelli represents a very minimal share of Citira’s overall sales, currently. However, the strategic partnership mainly revolves around Dackia and Pirelli, and the former is intended to become part of the Citira Group. “Moving forward, there is definitely an opportunity to deepen the collaboration with Pirelli and potentially grow their share within our overall brand mix,” added Boman.

Citira currently follows a multi-brand strategy and will continue with it even after closing of the deal. Besides, it is also involved in process and sales of retreaded TBR tyres and wheel rims.

“We operate a facility in Poland where we refurbish truck and bus rims. The process involves media blasting and repainting the rims to restore its appearance and functionality. The logic behind it is quite similar to retreading. In most cases, the structural integrity of the rim is still intact; it’s just the surface or aesthetics that degrade over time. By restoring these rims, we’re able to extend the life and reduce waste,” said Boman.

The company operates five retreading facilities collectively, located in Finland, Sweden and Poland. It uses both hot-cure and cold-cure retreading methods. Hot-cure is used in Poland and cold retreading in Finland and Sweden. Annually, it retreads around 160,000 tyres, averaging about 13,000 per month. While its current focus is on retreading, Citira is actively exploring expansion into tyre recycling as part of a broader push towards sustainability and circularity.

The company also manages tyre distribution for fleets across countries. Its circular tyre distribution approach involves not only delivering new tyres to customers but also collecting used tyre casings from them. These casings are then sent back to its retreading facilities, creating a closed-loop system. Besides, Citira has different suppliers across Europe for sourcing tyres for retreading.

MARKET WATCH

Citira sees a strong willingness in the market for consolidation and it has already engaged in several partnerships. Commenting on market challenges, Boman said, “One key challenge is the need for a player capable of driving consolidation at a larger scale. In the Scandinavian markets, this kind of brand-independent consolidation hasn’t really taken place over the last 10 to 15 years. Previously, consolidation efforts were primarily led by tyre manufacturers or affiliate networks players. However, consolidation has largely been on hold recently, leaving space for an independent actor to step in. We see that opportunity clearly and believe it is well received both by other market participants and customers. The challenge lies in successfully executing this consolidation while maintaining trust and delivering value across a diverse market.”

Commenting on the demand for retreading, he said, “The Scandinavian market has a long tradition of retreading heavy vehicle tyres. Currently, there is a growing shift towards pay-per-kilometre or tyre-as-a-service models, especially among large fleets like bus companies and hauliers. Notably, public tenders increasingly require a certain share of retreaded tyres, reflecting a strong environmental focus. Retreading extends the life of a tyre by reusing about 70 percent of its original material, making it a significant sustainability tool. The market share of retreaded tyres is gradually increasing with expectations that the retread market will grow faster than the new tyre market in the coming years.”

“The main challenges for the retreading industry lie in overcoming the longstanding perception that retreaded tyres are merely a low-cost option rather than an environmentally friendly and sustainable product. This is mostly prevalent is Scandinavia and it is crucial to shift this mindset by educating customers and the broader market about the true benefits of retreading. Moving away from a purely price-driven sales approach to one that highlights quality, durability and positive environmental impact remains a significant hurdle for the industry,” he added.