CEAT Limited will invest approximately INR 4.5 billion to expand production capacity at its manufacturing facility in Kannanthangal, Sriperumbudur Taluk, Tamil Nadu, near Chennai. The expansion aims to increase the company’s Passenger Car Utility Vehicle (PCUV) tyre output by around 35 percent over current levels.
The Chennai plant currently produces about 7 million tyres annually and operates at approximately 80 percent capacity utilization. The expansion project is expected to be completed by the end of FY 2027 and is intended to address projected demand growth in the PCUV segment.
The investment will be funded through a combination of internal accruals and debt. According to CEAT, the expansion aligns with expectations of continued growth in both original equipment manufacturer (OEM) and replacement markets. Industry trends such as premiumisation and electrification in the domestic automotive sector are also influencing this decision.
The announcement coincides with the reappointment of Arnab Banerjee as Managing Director & CEO for an additional two-year term starting April 1, 2026, subject to shareholder approval.
Commissioned in 2009, the Chennai facility is one of CEAT’s key production sites in southern India.
CEAT Limited is an Indian tyre manufacturer producing tyres for a wide range of vehicles, including passenger cars, utility vehicles, trucks, buses, and two-wheelers. The company operates multiple manufacturing facilities across the country.