Ceat Tyres has started a significant expansion project at its Chennai plant to boost production capacity. Arnab Banerjee, the Managing Director and CEO, announced that the first part of our TBR production expansion was finished last quarter, with the second phase expected to be completed within the next six to nine months. 

The Chennai production plant currently has the capacity to produce 45,000 units per month. In addition to TBR, Ceat is also scaling up its passenger car radial (PCR) production. 

“The PCR capacity currently stands at 20,000 units per day, and we plan to increase it by 30% to 40%,” Banerjee noted. Once finished, this extension will increase daily output to approximately 27,000 to 28,000 units. The Chennai growth is included in Ceat's larger Rs 1,000 crore investment plan for the year.
  
Ceat recently raised prices for its TBR and PCR products by 2% to 3.5% on October 1, and Banerjee hinted at further price hikes in other product categories. “We are planning additional increases of 1.5% to 2% in mid-October, with more adjustments in November or December,” he said, attributing the price hikes to rising natural rubber costs and supply shortages.