Now Reading: Michelin to keep investing in India despite Middle East cost pressures
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Michelin to keep investing in India despite Middle East cost pressures
Michelin to keep investing in India despite Middle East cost pressures
Michelin has launched the Primacy 5, its first passenger car tyre made in India, at its Chennai factory. The French tyre maker plans to keep investing in the plant despite global cost…
The Story in Brief
Michelin has launched the Primacy 5, its first passenger car tyre made in India, at its Chennai factory. The French tyre maker plans to keep investing in the plant despite global cost pressures, its president Vitor Silva told ET Auto. The Middle East war has pushed up logistics costs by €100 million in the first half and is expected to add €400 million to energy, raw material and logistics costs for the full year. Oil prices near $100 a barrel are driving raw material inflation. The company is managing costs by optimising manufacturing and reducing tyre weight, and maintains a 15-day raw material stock buffer to avoid supply disruptions.
The Indian Opinion
The narrative that global uncertainty drives foreign firms out of India is too simplistic. Michelin is doubling down on its Chennai plant, launching a locally made premium tyre, even as the Middle East war adds €400 million to its costs. The real test is whether local empowerment and cost-cutting can offset that hit. Watch for Michelin's next half-year results: the impact on its India margins will tell the true story.
Source: auto.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
