Michelin shifts gears: Revs up investment amid Thailand’s EV push
Iconic French tyre manufacturer Michelin is turbocharging its investment in Thailand, eager to ride the wave of the government’s electric vehicle (EV) push, even as local car sales take a dip.
With the pedal to the metal, Michelin plans to rev up sales by rolling out cutting-edge products and eco-friendly technologies in line with the global shift towards sustainable business practices, said Cyrille Roget, Michelin’s head of scientific and innovation communication
“We’re committed to investing in product upgrades and supporting research and development. Our investments must be sustainable.”
Earlier this year, Michelin signalled its commitment to beefing up business ties in Thailand during talks with former Prime Minister Srettha Thavisin in Paris.
The scale of Michelin’s operations is mammoth, churning through over 700 billion tonnes of natural rubber annually to keep the wheels turning.
Looking ahead, Michelin plans to crank up its production and investment in Thailand over the next three years, Srettha confirmed. Michelin, a staple in Thailand since 1987, boasts five factories and over 8,000 employees, with investments in the region topping 40 billion baht.
Thirapol Muengnao, Michelin’s VP for manufacturing operations in Asia, revealed the firm’s plans to boost tyre production from 9.1 million to a potential 16 million annually.
Currently, 60% of Michelin’s Thai-made tyres hit the export market, with the remaining 40% sold on home turf, said Thirapol.
“We recognise the slowdown in Thailand’s automotive sector, which impacts the tyre market, but we believe the government’s EV incentives will drive tyre demand upward.”
Tough bank loan criteria and soaring household debts are key culprits behind the slump in domestic car sales.
In response to the electric vehicle boom, Michelin is crafting tyres robust enough to handle the extra weight of EVs.
The tyre giant is shifting gears towards greener goals, aiming to use 100% recycled materials in its global tyre production by 2050, a significant leap from the current 30%.
As Michelin pushes the accelerator on its Thai investments, it’s clear that this tyre juggernaut is set on steering into a bright, green future.
What Other Media Are Saying
- Bangkok Post highlights Prime Minister Srettha Thavisin’s discussions in Paris, revealing Michelin’s 300 million euro investment in Thailand while promoting trade agreements and expanding opportunities with European partners. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why is Michelin focusing on Thailand for its EV strategy?
Thailand’s EV policies and strategic location make it ideal for Michelin to boost innovation and align with eco-friendly trends.
How might Thailand’s EV incentives influence the tyre market?
The incentives could drive demand for specialized EV tyres, prompting more sustainable innovations and market growth.
What if the shift to EVs doesn’t meet expectations in Thailand?
Michelin’s focus on sustainability and diverse markets might cushion potential setbacks in EV adoption.
How could Michelin’s investment impact Thailand’s economy?
Increased investment could spur job creation, technological advancements, and greater export revenue for Thailand.
What environmental impact could Michelin’s recycled material goals have?
Achieving 100% recycled materials by 2050 could significantly reduce waste and environmental footprint globally.
