Michelin looking at India as a potential global sourcing base for raw materials

Shantanu Deshpande, MD, Michelin India; Vitor Silva, President, Michelin AIM Region; and Esperanza Gaspar, Senior Vice President, Worldwide Truck and Bus Transportation, Michelin at the launch of Michelin X Multi Energy Z2 tyres. | Photo Credit: Bijoy Ghosh

Michelin is looking at India as a potential global sourcing base for raw materials while deepening its engagement with Indian start-ups in areas such as rubber plantation management.

The French tyre maker is initially focusing on strengthening local sourcing for its Indian operations before expanding the initiative to global requirements, said Shantanu Deshpande, Managing Director, Michelin India, told newspersons on Thursday on the launch of the X Multi Energy Z2 truck tyre manufactured at the company’s Chennai plant.

“Right now, we are focusing on local-to-local for India. We are also exploring India as a source for supplying raw materials for our own plants outside India,” Deshpande said.

Michelin is looking at multiple categories of inputs, including natural rubber, chemicals and other materials used in tyre manufacturing. However, the company is yet to identify specific products or countries that could be covered under the global sourcing initiative, he added.

Michelin is working with start-ups to improve the management of rubber tree plantations and is also collaborating with start-ups in non-tyre activities, he said.

Vitor Silva, President, Michelin Africa, India and the Middle East (AIM) Region, said with key markets like the US, Europe and Japan being flat, AIM is the most promising market.

“Within AIM, India is the most promising and fastest growing. AIM currently accounts for about 3 per cent of Michelin’s global business but has considerable potential in the next five to 15 years, with India leading the growth,” he added.

The group is targeting sustained low double-digit annual growth for AIM, he said.

New tyres potential

Deshpande said the new tyres can deliver up to 6 per cent fuel savings compared with competing tubeless tyres and up to 13 per cent compared with tube-type tyres, besides offering 25 per cent longer tyre life.

The Chennai facility manufactures truck and passenger car tyres. While passenger car tyre production is primarily meant for the Indian market, around 50 per cent of its B2B production is exported. The plant ships truck tyres to North America, the Middle East, Africa and Europe. Exports account for around 30-40 per cent of the Chennai plant’s sales, he said.

Despande said Michelin has implemented three to four rounds of price increases across different segments over the past six months to offset rising input costs. Natural rubber, carbon black, steel and petrochemical derivatives have all witnessed cost increases amid the West Asian crisis.

Michelin’s Chennai manufacturing facility has an annual installed capacity of 54,000 tonnes, catering to both business-to-business and business-to-consumer (B2C) segments.

No specific capacity expansion is being planned, as the plant is yet to operate at full capacity, said Jean-François RENE, Executive Director, Michelin India (Michelin Industrial Plant, Chennai).

Published on October 30, 2026