Michelin pins investment on EV policy

French tyre maker Michelin vows to expand its investment in Thailand, hoping to benefit from the government’s electric vehicle (EV) promotion policy despite weak domestic car sales.
The company wants to increase sales by introducing more innovative products and technologies, while joining the global campaign to have a more eco-friendly business direction.
“We continue to invest in upgrading products and supporting research and development. The investment must be sustainable,” said Cyrille Roget, scientific and innovation communication director at Michelin.
Michelin had discussions with former premier Srettha Thavisin during his visit to Paris earlier this year.
The company uses more than 700 billion tonnes of natural rubber per year to make tyres.
Michelin plans to increase its production capacity and investment in Thailand over the next three years, said Mr Srettha.
Established in Thailand in 1987, Michelin has five factories in the country and employs more than 8,000 workers, with investment valued at more than 40 billion baht.
These facilities have a production capacity of 9.1 million tyres a year, which can be ramped up to 16 million tyres, said Thirapol Muengnao, vice-president for manufacturing operations in Asia at Michelin.
Roughly 60% of the company’s products are exported, with 40% sold domestically, he said.
“We are aware the Thai automotive industry is slowing, which affects the tyre industry, but we believe the government’s EV incentive policy should stimulate demand growth for tyres,” said Mr Thirapol.
Domestic car sales are sluggish, attributed to banks’ strict criteria for auto loans as household debt is elevated.
Michelin adapted to the electric mobility era by developing tyres that can carry the heavier weight of an EV.
The company is committed to adopting stronger environmental standards by using more recycled materials for its tyre production worldwide, with a plan to increase the proportion of recycled materials to 100% by 2050, up from 30% at present.