"CEAT's Chennai Plant Expansion to Boost TBR Growth and Strengthen Focus on SUV Market"

CEAT, a leading tyre manufacturer, has unveiled plans to strengthen its presence in the truck and bus radial (TBR) tyre segment, aiming to increase its market share in India to double digits. This growth is supported by an expansion at its Chennai plant, which has introduced a new TBR production line with an investment of ₹670 crore, bringing the total investment in the facility to ₹3,000 crore. The new line, expected to produce 1,500 tyres per day by the end of the fiscal year, will create 500 jobs.

Arnab Banerjee, CEAT’s Managing Director & CEO, said the TBR production from the Chennai plant will primarily target exports to Europe and the US, freeing up capacity at the Halol plant to meet domestic demand. “Our goal is to grow our domestic TBR market share from 8% to 12-13% in the next two years,” Banerjee said. He added that CEAT will focus on key regions and deepen partnerships with original equipment manufacturers (OEMs), such as Daimler, Ashok Leyland, Tata Motors, and VECV.

In a potential second phase, CEAT may double its TBR production capacity to 3,000 tyres per day, with an additional ₹540 crore investment. The company is also expanding in the SUV tyre market, capitalizing on the increasing demand for larger tyres, which offer better profit margins. CEAT plans to boost research and development to support its SUV product line and collaborate more with OEMs like Kia, Mahindra, MG Motors, and Tata Motors.

CEAT has allocated ₹750 crore of its ₹1,000 crore capital expenditure for this year towards expanding TBR and passenger car radial (PCR) capacities in Chennai and scaling up its agriculture radial project in Ambernath. The company aims to increase its export share from 20% to 25% over the next three years, with a focus on markets in West Europe, the US, and Latin America, particularly Brazil.

Banerjee also addressed rising raw material costs, notably the sharp increase in natural rubber prices. CEAT has already implemented price hikes in the TBR and PCR segments and anticipates further adjustments in the coming weeks, possibly by September, as raw material costs stabilize.

HBL