French tyre giant Michelin is considering local production of passenger vehicle tyres in India, according to the group’s CEO Florent Menegaux. The move would help Michelin expand its operations in India, which have been restricted due to government import regulations introduced in 2020. Currently, Michelin only sells limited quantities of premium bigger-sized tyres in India, primarily for performance-oriented models.
In an interview with PTI, Menegaux stated that the company sees India as a promising developing market and is eager to invest in local tyre production for passenger vehicles. However, the timing for such an investment is yet to be determined. Menegaux emphasized that the company has a presence across the globe and needs to carefully evaluate investment options across various regions.
The Indian government’s import restrictions in 2020 limited the number of tyres that tyre companies can import into the country. Companies can now only import a small number of tyres under a limited import license, which was not the case before 2020. This has led Michelin to consider local production in India, which would help the company scale up its operations in the country.
Menegaux’s comments indicate that Michelin is committed to expanding its presence in India, but the timing for investment is crucial. Michelin operates in 175 countries with 67 plants and has a significant global presence. As such, the company must carefully evaluate investment opportunities in different regions before making a decision.
The production of passenger vehicle tyre in India would be a significant step for Michelin and could help the company establish a stronger foothold in the country’s automotive market. The demand for passenger vehicle tyres in India is expected to grow significantly in the coming years due to rising disposable income levels and an increase in vehicle ownership. Michelin’s move to local production could also lead to job creation and technology transfer, benefiting the Indian economy in the long run.
In conclusion, Michelin’s consideration of local production of passenger vehicle tyre in India is a promising development. The move would help the company expand its operations in the country and establish a stronger foothold in the Indian automotive market. However, the timing for investment is crucial, and Michelin must carefully evaluate its options before making a decision.
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