Global Tyre Firms Funding in Manufacturing in India

In order to take advantage of a government program that links imports to investment, global tire manufacturers Michelin, Bridgestone, and Goodyear have lined up manufacturing investments for India. Yokohama and Birla Tyre may also join in investment. 

The investments are anticipated to result in the creation of a few hundred jobs, with Yokohama, which has yet to announce its investment plans, expected to be the largest investor with a plant in Haryana, where nearly half the workforce will be comprised of women. Although the amount involved could be in the region of Rs 3,000 crore, it is seen as a beginning after the Centre placed restrictions on imports in a bid to encourage domestic investments.

The plan by the division for advancement of industry and internal trade (DPIIT) has connected imports to funding in capacity creation. Foreign companies had complained of difficulties shipping high-end tyres as a result of the check on imports of tires, which was one of the first items subject to licensing requirements. Even though import standards have stabilized, the scheme will assist in filling the gap.

"We are seeing the results of the steps we have taken and we are expecting more companies to come and make in India," said a senior official.

The government's plan to allow lower duty imports for a limited time if a company invests in a local manufacturing facility and sources components is seen as a positive development for the electric vehicle policy.