French tyre-maker Michelin is preparing to enter a stronger growth curve in the Indian market, with market share gains supported by a new product range and capacity expansion.

The company will increase its current capacity of 15,000 tonnes a year at the factory near Chennai to more than 30,000 tonnes by the end of 2018. The expansion is expected to create 150 new direct jobs.

The capacity hike has been necessitated in view of a growing demand for its tyres, launching of a new tyre range and widening of its product portfolio.

“Michelin is here for the long-term and we believe in the Indian growth story. I believe there is a tremendous potential for mobility in the country. We have so far invested ₹3,500 crore in a modern factory here and also in an R&D centre to serve not just India but also global requirements,” said the CEO of Michelin Group, Jean Dominique Senard, who is on a visit to India, at its Chennai factory.

Described as a disruptive product, Michelin has just introduced a new truck and bus radial (TBR) tyre range called X Guard, which has been exclusively designed, engineered and made for India, and promises 10 per cent more fuel efficiency when compared with the tyres in that category.

“X Guard is meant for customers who look for affordable, long-lasting and more fuel-efficient truck tyres. For slightly premium categories, Michelin offers X Multi, the tubeless truck radial range,” said Serge Lafon, Executive Vice-President, Truck Product Line, Michelin Group.

Michelin has just signed up with Ashok Leyland (AL) for the supply of its new X Guard range for AL’s Captain range of trucks and other medium commercial vehicles.

This is the second OEM tie-up for Michelin in the commercial vehicle segment after Volvo. Michelin sells most of its TBRs in the replacement market like other tyre makers in India.

But Michelin has a strong OEM presence in the bus segment. It has a full share in the inter-city coach segment and supplies its tyres to buses of Volvo, Scania and MAN, among others.

Mohan Kumar, Executive Vice-President, Michelin India, said the company was gaining market share across categories.

It is boosting its marketing campaigns to support growth plans.

Michelin sells its tyres through around 5,000 outlets spread across more than 150 locations in the country.

At present, only 70 per cent of the products sold in India are produced out of its Chennai factory. In two years time, it plans to produce 100 per cent of its domestic market requirements.

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