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Old 14th June 2019, 18:15   #1
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Default Michelin might start leasing tyres to truck owners

According to a media report, Michelin might launch its leasing model for truck tyres in India. As part of this, instead of paying the whole price of the tyre upfront, truck owners will pay based on the kilometers run.

Michelin might start leasing tyres to truck owners-michelin.jpg

Michelin is already leasing tyres to truck owners in the US, UK, France, Germany, Italy and Spain. It requires each tyre to be embedded with RFID chips. These will record usage and maintenance data, which is then shared with Michelin wirelessly. Truck owners pay per kilometer of usage or per week or per month. By end-2019, Michelin plans to embed RFID chips in all its truck tyres.

It is said that tyres amount for about 35% of the operating cost of a truck. Michelin's leasing model is expected to reduce the operating cost of tyres by half.

Source: Hindu Business Line

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Old 14th June 2019, 21:23   #2
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Default Re: Michelin might start leasing tyres to truck owners

But leasing is always more expensive than buying outright. So what this scheme basically does is spreads out a truck operator's tyre expenses evenly over time. A bit like buying tyres on EMI (from financial POV).
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Old 14th June 2019, 21:51   #3
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Default Re: Michelin might start leasing tyres to truck owners

Quote:
Originally Posted by SmartCat View Post
But leasing is always more expensive than buying outright. So what this scheme basically does is spreads out a truck operator's tyre expenses evenly over time. A bit like buying tyres on EMI (from financial POV).
If Michelin wants this to succeed, then the pricing will have to be spot-on.

However, the advantage I see is tyres of better condition - for the safety conscious truck operator. I could be wrong here.


On another note, what happens to old truck tyres ? At least the used PV tyre market is said to be dead. With the advent of cheaper chinese / imports, No recycling happens these days. Taxi operators are often buying these and not re-treaded tyres. What would Michelin do with the used tyres ?
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Old 14th June 2019, 22:08   #4
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Default Re: Michelin might start leasing tyres to truck owners

I'm guessing many truck drivers in India retread their old tires to save money and sometimes resort to juggad. Wonder whether this will have large scale success in India.
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Old 14th June 2019, 22:36   #5
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Default Re: Michelin might start leasing tyres to truck owners

Quote:
Originally Posted by TusharK View Post
It requires each tyre to be embedded with RFID chips.
Several years ago, I'd spotted this device on the tyres of a city bus in the US.

https://www.team-bhp.com/forum/comme...ml#post2917706 (Unusual Odometer on the wheel of a Bus (Hubometer))
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Old 14th June 2019, 22:49   #6
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Default Re: Michelin might start leasing tyres to truck owners

Quote:
Originally Posted by condor View Post
With the advent of cheaper chinese / imports, No recycling happens these days. Taxi operators are often buying these and not re-treaded tyres. What would Michelin do with the used tyres ?
Quote:
Originally Posted by landcruiser123 View Post
I'm guessing many truck drivers in India retread their old tires to save money and sometimes resort to juggad.
About retreading industry in India:
https://www.team-bhp.com/forum/comme...try-india.html (The Tyre Retreading Industry in India)
https://www.team-bhp.com/forum/tyre-...2015-16-a.html (Apollo targets 20 tyre retreading shops in 2015-16)

Looks like Michelin offers retreading solutions too. So I'd assume used Michelin tyres are retreaded and put back on the road.
https://www.michelintruck.com/tires-...eads/retreads/

Quote:
Originally Posted by libranof1987 View Post
Several years ago, I'd spotted this device on the tyres of a city bus in the US.
Now that's interesting! From Wikipedia:

Quote:
Hubometers are used on bus or truck or trailer wheels where the tires are supplied to the vehicle operator by an independent company on a contract of "price per thousand kilometers". The hubometer is installed by the tire company to give them their own measure.
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Last edited by SmartCat : 14th June 2019 at 22:52.
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