The Board of Directors of CEAT on 19 January, 2026 approved a proposed capital expenditure plan for the company's Chennai plant, located at Kannanthangal, Maduramangalam Post, Sriperumbudur Taluka in Kancheepuram district.

The plant currently has an annual capacity of about 95 lakh tyres, with a utilisation rate of approx. 80 percent, excluding capacity additions under implementation. The proposed expansion will add an additional 35 lakh tyres per annum, with the increased capacity expected to be operational by the end of the first half of FY2028. The investment required for this expansion is approx. Rs 1,314 crore, which will be financed through a mix of internal accruals and debt.

The company is making this investment in anticipation of strong growth in the passenger car and utility vehicle (PCUV) category and aims to meet the increasing demand in the short to medium term by progressively expanding its production capacity.