CEAT Goes Big in Chennai: ₹1,314 Crore Expansion Approved

The Board of Directors of CEAT approved a capital expenditure proposal on 19 January 2026 for the expansion of its Chennai manufacturing plant located at Kannanthangal, Maduramangalam Post, Sriperumbudur Taluka, in Kancheepuram district.

The plant currently has an annual production capacity of approximately 95 lakh tyres, with a utilisation level of around 80 per cent, excluding capacity additions already under implementation. The proposed expansion will add 35 lakh tyres per annum, with the additional capacity expected to become operational by the end of the first half of FY2028.

The expansion will require an investment of approximately ₹1,314 crore, to be funded through a combination of internal accruals and debt. CEAT is undertaking this investment in anticipation of strong growth in the passenger car and utility vehicle (PCUV) segment and aims to address rising demand in the short to medium term through phased capacity expansion.

News by Rahul Yelligetti.