Ceat, the flagship tyre company of RPG Enterprises plans to invest Rs 450 crore to expand capacity at its Sriperumbudur plant near Chennai. The expansion will focus on the Passenger Car Utility Vehicle (PCUV) segment, aiming to meet the increasing market demand in the medium term.

The Chennai facility currently produces 70 lakh tyres annually, operating at 80 percent capacity utilisation. The company intends to add 35 percent to the existing capacity, with the additional output expected to be operational by the end of FY27. The project will be funded through a mix of internal accruals and debt, according to the company. The tyre maker sees good growth potential in the PCUV category, driven by rising vehicle sales and changing consumer preferences.

Ceat aims to solidify its market position by scaling up production and ensuring readiness for future industry requirements. This strategic move aligns with Ceat’s broader objective of expanding its manufacturing footprint to support both domestic and export markets.