Michelin targets 25pc growth by 2015

Michelin India is targeting ambitious double-digit growth of 25 percent in India by 2015 on the back of a robust distribution network for passenger car radials and two-wheeler tyres as well as manufacturing base for trucks and buses.

Michelin had last year announced an investment of Rs 4,000 crore in a manufacturing facility at Chennai for producing truck and bus radials and had also signed an MoU with the Tamil Nadu government for the same. The investment would fan out over seven years and would be spread across 290 acres.

At a media meet in New Delhi on March 20, Thom Clark, managing director of Michelin India, said that the plant is on track with construction underway. Production was expected to roll off by end-2012 but with Michelin going slow on its expansion projects in emerging markets, as a result of the slowdown in the automotive industry globally, production is now expected to kick off sometime next year.

Clark projected that the demand for radial tyres for the commercial vehicle market is slated to rise from the current 15 percent to 50 percent by 2021 and Michelin is optimistic of piggyback riding on this growth with its new tubeless technology for tyres for the CV segment. In the passenger car segment, Clark foresees growth of radials in the 12 to 15-inch seat segment which cover a large number of cars ranging from the Maruti Alto to the Honda City. Michelin spends about Euro 500 million in R&D every year for its North American, Asian and European markets that includes innovating new tyre technologies.

Michelin has also launched the new Michelin Energy XM2 tyre for passenger cars in India. The Energy XM2 is a new design which aims to improve fuel savings, mileage and safety. Compared to the previous-generation Energy tyre, the Energy XM2 uses less fuel thanks to an 8 percent reduction in rolling resistance, lasts up to 15 percent longer and stops 1.7m shorter.

The tyre incorporates Ironflex technology combining strength and flexibility. Coupled with an optimised casing design, the new tyre is better able to absorb and effectively dissipate peak stresses generated when it comes into contact with any type of road hazard. The new formulation of micro resilient tread compound provides a firm grip with the road surface which helps to reduce the braking distance and thus contributes to reducing accidents and improving safety. This tread compound also lasts longer giving more mileage potential.

The tyremaker says that the latest Michelin technologies from its global R&D activities have been designed into the new Energy XM2, from Alternating Bridging, Micro Adaptive Compound and Silica technology, to give the best performance for fuel saving, longevity and safety. The new tyre will be available in sizes ranging from 12 to 15 inches at prices ranging from Rs 2,475 up to Rs 6,075.