CEAT Ltd. has announced plans to invest an additional ₹1,300 crore to expand passenger car radial (PCR) tyre production at its Chennai manufacturing facility, pushing the plant’s total investment to ₹4,800 crore—well above its original commitment of ₹4,000 crore.

The company has already invested approximately ₹3,500 crore in the facility and is now ramping up capacity to meet growing demand in the passenger vehicle segment.

The proposed expansion will add around 35 lakh tyres annually, taking total PCR production capacity from 95 lakh units to an estimated 1.3–1.4 crore tyres, depending on product mix. The enhanced capacity is expected to be operational by the first half of FY28.

According to Jayasankar Kuruppal, Senior Vice President (Manufacturing), civil construction work is expected to commence in the coming months, while orders for key equipment have already been placed.

The plant, located in Kanchipuram district near Chennai, spans 63.4 acres and currently manufactures passenger car radial tyres, truck and bus radial (TBR) tyres, as well as tyres for two-wheelers.