Michelin-TVS Srichakra agreement announced; new tyre plant coming up
According to the agreement, the French tyre giant and its Indian partner will set up a new production unit within the latter’s facility in Madurai, Tamil Nadu. The news was confirmed by TVS in a letter to NSE (National Stock Exchange). The new manufacturing unit will have an annual production capacity of 3.6 million units.
Products to be made at the new partnership plant will be designed by Michelin for Indian market and made by TVS Srichakra. The crossply two wheeler tyres produced at this plant will be sold under Michelin brand while TVS will also manufacture its range of two wheeler tyres at the facility.
TVS says that best practices of both brands will be incorporated in tyre manufacturing, thereby resulting in high quality tyres at low production cost.
It’s to be noted that TVS Srichakra earlier announced that it is currently developing two types of tyres to be used by the upcoming TVS-BMW K03 300cc street fighter. The new tyres in question are expected to be designed by Michelin.
Michelin’s range of crossply two wheeler tyres will compete with other premium tyre brands such as Metzeler, Pirelli Sport Demon, MRF REVZ, etc. Local production will give an obvious cost advantage.
via – EconomicTimes.com