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 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 claims that its leasing model could reduce the operating cost of tyres by half.

Source: Hindu Business Line

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