Michelin expects India’s premium tyre market to expand sharply over the next few years, with the shift towards larger SUVs, better roads and rising consumer expectations driving demand for higher-value products. According to Shantanu Deshpande , MD, Michelin India, the company sees significant opportunity in the premium SUV and passenger vehicle tyre segment, particularly in the 16-inch-and-above space. “We believe the market size of 16” and above will double in coming 5-7 years,” Deshpande said.
He said better highways, longer leisure journeys and higher average speeds are pushing customers towards larger, safer and more capable vehicles, along with larger premium tyres.
“ We see that shift accelerating, not slowing,” he said.
The company’s Chennai facility, which manufactures 16-inch to 22-inch tyres, is aligned with this shift. Michelin expects the product mix to move towards larger rim sizes and tyres that are compatible with both internal combustion engine (ICE) and electric vehicles (EVs).
The brand recently commenced local production of the Michelin Primacy 5 which is the company’s first passenger car tyre manufactured in India. Deshpande said the decision to localise production was driven by the market and aligned with Michelin’s global “local to local” manufacturing strategy.
“The timing is driven by the market and is in line with our global strategy – Michelin in Motion of sustainable growth and manufacturing strategy ‘local to local’ of producing closer to the market where we make our sales,” he said. He further added that the Primacy family remains central to its India strategy with more sub-brands expected to eventually be produced at the Chennai facility.
Replacement Market Priority
For the made-in-India passenger car tyres, Michelin’s immediate focus is the replacement market, before expanding its OEM presence as production and volumes grow. “Replacement remains the priority for now for made-in-India passenger vehicle tyres, and that is where the near-term momentum is,” Deshpande said.
He said the company’s retail footprint has expanded to over 800 points of sale, while Tier-II and Tier-III cities are becoming an increasing focus. Michelin is seeing rising premium tyre demand in markets such as Guntur, Nashik and Patiala.
“Our expansion approach is deliberate – depth in the key premium metros first, then selective expansion into high-potential smaller cities,” he said.
Deshpande further added, “ We do not compromise the future because of the present,” he said, adding that the company will continue to invest in India despite operational challenges from West Asia disruptions, which have increased energy, logistics and raw-material costs.