[iraghava]

Originally Posted by theMAG

Just truck/bus tyres ?!! What does it take for them to see the Indian car tyre potential ???

Nothing. They're managing pretty decent volumes and even better margins with imports so why bother investing in a factory?

This factory is primarily to push into the lucrative and the massive volume of our commercial vehicle sector. Michelin has been trying to make it big here for a few years now and to combat the cost advantage of our local makers, it has finally decided to set up a factory.

Originally Posted by Nikhilb2008

Michelin's pricing is expensive, but it NOT due to the importing of tyres. It is due to the brand name of MICHELIN.

Exactly. Nikhil, hit the point on the head, they charge a premium knowingly. That's their strategy.

Originally Posted by GTO

Well, only a matter of time before they start manufacturing passenger car tyres. This is a step in the right direction.

I'm not so sure that's going to happen in the short term Rush. Bulk of Indian market passenger car tyre sales are in the 12/13/14" sizes which as most makers will testify leave them hardly any margins due to the amount of competition involved.

I suspect Michelin will not start any production here unless they start seeing volumes in the 16" and upwards sizes where they can limited competition and command their desired margins and volumes.

[GTO]

Originally Posted by iraghava

Bulk of Indian market passenger car tyre sales are in the 12/13/14" sizes

unless they start seeing volumes in the 16"

Sigh, long time before our market sees any volumes in 16" and above sizes. 75% of our market is hatchbacks! Well, guess we'll have to stick to the imports for now.

[ksethuram]

It is nice to see thet French giant setup factory in india.

Their Michelin Energy range is claimed to provide high mileage and better wet grop due to the use of silica. It would be great if they come in with that series as no other manufacturer has silica series in India.

[dhuli]

Now, Michelin is following up on its factory with its famed guide, though its a Green Guide for travel. Check this story out

And here is what Mr.Prashant Prabhu, president of Michelin AIM (Africa, India & Middle East), said at the launch at The Park hotel, Chennai “This is the state where we are building a Michelin type manufacturing plant, and it's welcomed us. So this is our humble gesture in return…”

The Hindu reporter has done a great job of this story and summarizes saying take it with a pinch of fleur de sel!