Tyre manufacturer CEAT Ltd has announced a fresh ₹1,300 crore investment to expand passenger car radial (PCR) tyre capacity at its Chennai manufacturing facility, bringing the cumulative investment to ₹4,800 crore. According to reports from The Hindu BusinessLine, this additional investment exceeds the company's original commitment of ₹4,000 crore and represents a significant expansion of the facility's capabilities.
The expansion will add approximately 35 lakh tyres annually, increasing the total PCR capacity from 95 lakh units to 1.3–1.4 crore tyres, depending on product mix. As reported by The Hindu BusinessLine, the enhanced capacity is expected to be operational by the first half of FY28. Civil works are likely to begin in the coming months, with equipment orders already placed, according to Jayasankar Kuruppal, Senior Vice President (Manufacturing).
The Chennai facility, located in Kanchipuram district near Chennai, currently produces 20,000–22,000 passenger car tyres per day and operates at 80–85 per cent capacity utilisation. According to the report, the plant employs around 1,500 people across three production lines and produces passenger car radial tyres, truck and bus radial (TBR) tyres, and two-wheeler tyres. The facility's productivity is approximately 30 per cent higher than some of its older plants, driven by newer machinery and Industry 4.0 technologies.
The Chennai unit has emerged as a key export hub, with nearly 40 per cent of its PCR output shipped to markets including Europe, the Middle East and Latin America. As reported by The Hindu BusinessLine, the plant began exports in 2017 with about 10,000 tyres per month, with volumes steadily rising since. The facility's strategic location near major OEM hubs in southern India, including companies like Hyundai Motor Company, Renault-Nissan, Daimler AG, and two-wheeler makers such as Yamaha Motor Company, TVS Motor Company, and Royal Enfield, was a key factor in its success.
In parallel with the PCR expansion, CEAT is also doubling TBR capacity from 5 lakh to 10 lakh tyres annually. According to the report, the Chennai plant commenced operations in February 2020 with PCR and two-wheeler tyre lines, and later added a TBR line in September 2024. The company expects the Chennai plant to play a larger role in its growth strategy, catering to both domestic demand and export markets following this significant investment increase.
