CEAT has unveiled significant expansion plans for its Chennai plant, with the company's Board of Directors approving a capital expenditure of approximately Rs 450 crore. 

This strategic investment is primarily aimed at substantially boosting the production capacity of Passenger Car Utility Vehicle (PCUV) tyres, a segment experiencing robust growth in the Indian automotive market.

The Chennai plant, located in Sriperumbudur, currently boasts a capacity of about 70 lakh tyres per annum and is operating at a healthy 80% utilization. 

The new investment is projected to add a remarkable 35% to the existing PCUV tyre capacity at this facility. 

This expansion will be implemented progressively and is expected to be fully operational by the end of Financial Year 2027.

CEAT's decision to inject significant capital into its Chennai operations underscores its confidence in the sustained demand for PCUVs. The utility vehicle segment, particularly SUVs, has been a major growth driver in India's passenger vehicle market, and these vehicles often require larger, higher-margin tyres. 

By expanding its PCUV tyre manufacturing capabilities, CEAT aims to strengthen its market position and meet the anticipated future demand.