Ceat Sets Out Expansion Plans - Tire Review Magazine

Ceat Sets Out Expansion Plans

(Staffordshire, U.K./Tyres & Accessories) Ceat Ltd. has outlined a ≤76 million capital expenditure plan spread over the next three years.

The plan includes setting up of two greenfield plants, one for radials and the other for speciality tyres. This is a more ambitious plan than previously reported, as the company was expected to establish a single plant where all the above-mentioned activities would take place.

The radial plant, at an investment of £40.4 million, will have a capacity to produce 7,000 car radials and 700 truck radials a day. The speciality tyre plant will enable the company to further grow its OTR business. The company will fund the plants via a mixture of borrowings, internal accruals and money generated from selling real estate assets.

The company is currently exploring a number of options in India’s western and southern states of Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu and should have final plans drawn up by April. The radial facility is likely to be located in Maharashtra, closer to the customer base.

The truck radial market in India is still a mere drop in the ocean. Out of the 800,000 truck tyres sold very month, only 25,000 are radials. Of this, Ceat sells about 1,000. However, truck radialisation is slated to increase from the current 5% to 40% over the next 10 years. By then, Ceat intends to secure its position in the truck radial market. Currently, it outsources truck radials from Pirelli’s plant in Egypt and has arranged deals to obtain another 2,000 from the Italian major’s factory in China. It has also tied up with a manufacturer in China to outsource another 5,000 truck radials. “We will already be selling about 20,000 truck radials, before we actually set up our own hub,” commented Chowdhary.

Ceat is considering the possibility of some kind of joint venture with an overseas partner. “The company is currently exploring options of a technical tie-up for its radial plant but if it does not materialise, we will look at hiring technicians from abroad and going ahead with our plant,” said managing director Paras Chowdhary.

The company currently has a small-scale car and light commercial radial manufacturing facility, producing 2,000 tyres per day, at its Nashik factory. This capacity will be shifted out of Nashik to the new radial plant.

You May Also Like

Big O Tires Expands to Sevierville, TN

The first Big O Tires location in Sevierville, TN is offering discounts and financing upon opening.


Big O Tires announced it is opening its first store in Sevierville, TN. Owners Jai Khanna, Jan Solarz, and Andy Bryja are bringing a Big O Tires franchise to the area. The owners also operate three Big O Tires stores in Knoxville.

With the new opening, Big O Tires is offering a conventional oil change at $14.95 and $100 off select sets of new tires, which includes a free, basic installation.

Helping Your Customers Make Sense of Ag Tire Technology

To help us differentiate ag tire technology in the market today, Titan International’s Scott Sloan joins us on the podcast.

Whats-Treading-Scott-Sloan-Titan International
Goodyear Introduces Powerload Tire Line

Goodyear said its Powerload line delivers durability and traction for compact wheel loaders and graders.

Nominations Open for 2023 Tire Industry Hall of Fame

The annual Tire Industry Hall of Fame ceremony recognizes folks for achievements in the industry.

Roy Littlefield TIA
Nokian Tyres on Track to Complete Sale of its Russia Manufacturing Plant

The company is expected to be paid $302.30 million for its Russian operations.


Other Posts

Federal Bill Introduced in Hopes to Stop California’s Gas-, Diesel-Powered Vehicle Ban

If approved, H.R 1435 would prevent the EPA from allowing California’s Zero Emissions Vehicle regulations that would ban motor vehicles with internal combustion engines from taking effect.

Yokohama Off-Highway Tires Introduces Galaxy Hippo Radial Tire

Yokohama Off-Highway Tires brings a high-traction herringbone lug design to a category the company says is dominated by rock treads.

Inspecting Ball Joints

Ball joints may be small, but if they fail drivers will lose control of the vehicle.

Trelleborg Wheel Systems Launches ‘My TWS Hub’

Trelleborg’s new full-feature B2B dealers’ portal launched March 13.