Michelin plans to build passenger car tyre manufacturing Unit in India after 2015

Latest developments in Indian automobile market states that one of the World’s largest tyre making company Michelin is planning to enter in the manufacturing of passenger car tyres and intends to establish a unit in India after 2015. As per current situation Michelin is selling passenger car tyres in India which are manufactured in South East Asia and are price tagged between Rs 2,000 to Rs 5,500. Company intends to expand the infrastructure in the country so as to establish big plant in India.

Michelin President, Passenger and Light Truck Tyres Worlwide, Florent Menegaux said that if company observes more infrastructure expansion then it is possible that to establish a new plant in India (for passenger car tyres).

Further when asked about the expected time period, he said that company is most likely to establish the manufacturing unit in India after 2015. He also pointed out the condition that if the country’s infrastructure increases faster then they may enter India early. Also in current situation Indian market is not in position of handling such vast production of tyres.

He further added that company is building the distribution network in India and more possibilities are in pipeline which depends on infrastructure and establishment of factories of new cars. He commented that Michelin is looking for building a brand image in India while company is currently investing in increasing the network distribution.

As per reports, the tyre giant Michelin is about to invest Rs 4,000 crore in building a truck and bus tyre manufacturing factory in Chennai, where production is expected to start by next year. It is said that initially the factory will produce three lakh truck and bus tyres per year.

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