Ceat Gears Up: ₹450 Cr Investment to Fuel PCUV Growth

Ceat Ltd, the flagship tyre brand of RPG Enterprises, plans to invest ₹450 crore to expand production capacity at its Sriperumbudur plant near Chennai. The expansion will focus on the Passenger Car Utility Vehicle (PCUV) segment, targeting growing market demand over the medium term.

Currently, the Chennai facility produces 70 lakh tyres annually at 80% capacity utilisation. With this investment, Ceat aims to increase capacity by 35%, with the additional output expected to go live by the end of FY27. The project will be financed through a combination of internal accruals and debt.

The company sees strong growth potential in the PCUV segment, supported by rising vehicle sales and shifting consumer preferences. The expansion is part of Ceat’s strategy to strengthen its market position, scale up production, and stay ahead of evolving industry needs.

This initiative also aligns with the company’s long-term vision of broadening its manufacturing footprint to support both domestic demand and export opportunities.

News by Rahul Yelligetti.