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.”

Bridgestone India announced the winners of the 5th Edition of its Mobility Social Impact Awards (MSIA) 2025 in Pune, celebrating organisations that use mobility for social good.

The top honour in the Road Safety Innovation and Excellence category went to ALERT (Amenity Lifeline Emergency Response Team) from Chennai for empowering over 450,000 citizens with emergency response skills. Safety Research Foundation (SRF), based in Pune, received a Jury Commendation for its BRACE Project, which transforms school zones with safety audits and infrastructure upgrades.

In the Empowerment of Vulnerable Communities category, The Association of People with Disability (APD), Bengaluru, won the top honour for its Rehab on Wheels initiative, which provides last-mile rehabilitation services.

The winners were presented with their awards by social worker Dr. Girish Kulkarni, founder of Snehalaya.

Hiroshi Yoshizane, Group President, Bridgestone Asia Pacific and Managing Director, Bridgestone India, said: “It is a privilege to honour these changemakers who are redefining mobility for social good. Their work reflects our shared commitment to building inclusive, safe, and empowered communities.”

Jeya Padmanaban, Founding Trustee, Safety Research Foundation (SRF), said, “We are truly honoured to receive the Jury Commendation at the Bridgestone Mobility Social Impact Awards 2025. The BRACE Project reflects our belief that road safety must begin at the community level, where awareness and infrastructure meet action. This recognition strengthens our resolve to continue building safer environments for children and fostering a culture of responsibility and care on our roads.”

Category	Winner / Commendation	Organisation (Location)	Initiative Focus
Road Safety Innovation and Excellence	Winner	ALERT (Chennai)	Empowering citizens with emergency response skills
	1st Runner-up	SAFE India (Bhubaneshwar)	Improving safety through #ZoneZero Safe School Zone and Driver Training programs
	Jury Commendation	Safety Research Foundation (SRF) (Pune)	Transforming school zones via the BRACE Project
Empowerment of Vulnerable Communities	Winner	The Association of People with Disability (APD) (Bengaluru)	Providing last-mile rehabilitation services via Rehab on Wheels
	1st Runner-up	Impact Guru Foundation (IGF-India) (Delhi)	Initiatives like Empower Her and Mission I-M-Possible, focusing on healthcare, education, and skilling
	Jury Commendation	Jharkhand Vikas Parishad (JVP) (Jharkhand)	Community-led programs promoting sustainable livelihoods and women’s empowerment

Linglong Tire has announced the promotion of Alessio Iacovelli to Deputy Director of Replacement Sales for Western Europe, effective 1 September 2025. In this elevated role, Iacovelli will take on leadership of the regional sales team with a mandate to accelerate business development. His key objectives will include forging strategic alliances and implementing programmes to strengthen customer loyalty. Iacovelli will report directly to Lisa Zhao, the Director of Replacement Sales for Western Europe, and will collaborate with her to manage key markets, including Germany, the UK, Italy and Spain.

Iacovelli, who began his career with Goodyear and Nexen, first joined Linglong Tire at the end of 2022 as a Sales Manager. In that capacity, he demonstrated significant success in developing the Southern European aftermarket, where he expanded the brand's footprint, defined effective growth strategies and secured robust partnerships with distributors. This strategic appointment and the restructuring of the sales leadership underscore Linglong Tire's intensified focus on achieving its ambitious growth targets across the European continent.

Iacovelli said, "I am very pleased to have been promoted to Deputy Director Replacement Sales West Europe at Linglong Tire. We have fantastic products such as the Sport Master 4S and the Sport Master Winter, both successfully tested in the recently published tyre tests. We have a state-of-the-art development centre in Germany and a new tyre plant in Europe and are successful in original equipment – ideal conditions for achieving our ambitious goals together with my team and the colleagues in Hannover and continuing to grow, especially in Europe."

German synthetic rubber maker ARLANXEO has launched consultations with worker representatives over the potential closure of its Port Jerome facility in France, citing persistent weak demand and declining competitiveness in the European chemicals industry.

The company, which is majority-owned by Saudi Aramco, had begun an information and consultation period with the Works Council at the site, located in northern France. A final decision on the closure will be taken after the mandatory consultation process concludes and approval is obtained from the French labour authorities, DREETS.

“The European chemical industry continues to face persistent weak demand and declining competitiveness driven by rising costs, unbalanced global markets, and increased regulatory pressure,” said Stephan van Santbrink, ARLANXEO chief executive.

“These conditions have generated a significant burden on the sector across the regional value chain. ARLANXEO has not been an exception to these challenges. The Port Jerome site has remained in a structurally loss-making position. Despite numerous improvement efforts, we do not foresee a viable path to a sustained structural improvement.”

The company did not disclose how many jobs would be affected by a potential closure, nor did it provide details on the facility’s production capacity or annual output.

Van Santbrink acknowledged the impact on workers, saying: “We recognise the impact a potential closure may have on our employees, and we regret the need to consider these steps. We will continue to treat all employees with respect. If we decide to cease operations at the site, we will do our utmost to assist in finding alternative solutions for all impacted employees. In addition, we intend to provide impacted employees with a social plan which reflects their valued contribution to ARLANXEO.”

The announcement adds to a growing list of European chemical producers struggling with high energy costs, sluggish demand and competition from lower-cost producers in Asia and the United States.

ARLANXEO said it would work closely with all affected internal and external stakeholders to minimise the impact of the intended closure.

Continental's Tires group sector has strengthened its leadership team with two key internal appointments, effective 1 September 2025. Jana Striezel has been named the new head of global purchasing for Continental Tires, while Dennis Bellmund has assumed leadership of the global original equipment business for both passenger and commercial vehicles. Both executives will report directly to Christian Kötz, the member of Continental AG's Executive Board who leads the Tires group sector.

In her new capacity, Striezel will oversee worldwide strategic and operational purchasing. She brings extensive experience from the automotive industry, having previously held several procurement management roles at Renault, where she led purchasing for the Renault brand and its alliance with Nissan and Mitsubishi in Europe. Her career began at Volkswagen in 2014.

Bellmund, who has a 25-year tenure with Continental, steps into his role following the departure of his predecessor, Manja Greimeier, to the ContiTech sector. His extensive background within the company includes recent responsibility for Continental’s tyre retail operations, alongside prior leadership roles in EMEA supply chain management and sales direction for the European replacement tyre business. These appointments signal a strategic reinforcement of Continental's tyre division leadership.

Kötz said, “We’re delighted to welcome Jana Striezel, a highly skilled manager, to our team. She brings extensive expertise in international procurement and will focus on driving forward our purchasing strategy. In Dennis Bellmund, our global original equipment business has gained a highly experienced leader. Thanks to his many years at Continental, he is familiar with our company and our customers’ needs from many different angles. On behalf of the entire management team, I wish both of them every success in their new roles and look forward to working together.”

“On behalf of the entire team, I would like to thank Manja Greimeier for her successful leadership of our original equipment business and wish her all the best and continued success,” added Kötz.