Michelin Eyeing Up India?

Reports in the Indian press suggest that Michelin has embarked on a tyre market analysis (passenger car, truck and bus) to determine whether it is worthwhile investing in a manufacturing facility in India. When the programme is complete, Michelin’s Asia HQ (based in Singapore) will evaluate the pros and cons of such an investment. A similar exercise was carried out early in 2000, when a company vice president stated that Michelin was considering an investment of Rupees 500 crore (90.

5 million Euros) in a manufacturing facility, possibly in Bangalore. As it turned out, the plan was a non-starter, as Michelin’s research revealed that the level of radialisation in the Indian tyre market was very low. Now, however, it would appear that the French manufacturer feels that it might be worth a second look.

It is no secret that Michelin regards Asia as the area in the world where its performance is weakest and the company has made strenuous efforts to improve sales in the Far East. It is estimated that operations outside Europe and North America account for 13 per cent of Michelin’s global earnings, so there is room for improvement. One strategy is the production of market-specific products and, as reported on T&A’s website yesterday, Michelin has introduced two new tyres, designed for Asian roads and weather conditions.

These are the ‘Pilot Preceda’ and ‘Energy MXV8’ and, although described as “designed for Asian markets”, it is thought that they are specifically aimed at the Indian market. The tyres are fitted on imported Mercedes C-Class vehicles but will also be available through Michelin’s dealer network and independent tyre dealers. The tyres are manufactured at Michelin facilities in Asia and imported by Michelin India.