Sriperumbudur-Oragadam becomes India’s largest tyre manufacturing hub

Nearly 30% of the 3 million tonnes of tyres manufactured annually in India come from the Sriperumbudur-Oragadam cluster in Tamil Nadu, which has attracted over ₹15,000 crore in investments. 

Out of the 3 million tonnes of tyres manufactured in the country, nearly 30 per cent come from the Sriperumbudur cluster in Tamil Nadu, which has attracted investment of over ₹15,000 crore from tyre manufacturers.

The Sriperumbudur-Oragadam region is not only a major automobile cluster but has also emerged as a strong zone for tyre manufacturing.

Leading tyre manufacturers, such as Apollo Tyres, CEAT, and JK Tyre, have production facilities in the cluster. The manufacturing spans across all categories – passenger vehicles, two-wheelers, commercial vehicles, and off-the-road tyres. This provides strong support to automobile majors such as Hyundai, Daimler, Renault-Nissan, Yamaha, and Royal Enfield, which are present in the cluster.

 CEAT plans ₹450-cr expansion at Sriperumbudur facility

Leading tyre manufacturer Ceat Ltd recently announced that it would invest ₹450 crore at its Chennai factory in Sriperumbudur. This will give a fillip to tyre manufacturing in the Sriperumbudur-Oragadam cluster.

So what makes the cluster succeed in tyre manufacturing?

Crisil: Location, scale, and ports make it India’s top tyre hub

The cluster’s scale, infrastructure, and strategic location have positioned it as a critical production and export base for domestic and global tyre manufacturers, making it the country’s largest tyre manufacturing hub, said Poonam Upadhyay, Director, Crisil Ratings. It caters to both domestic and export markets across all segments and is among the largest-capacity plants in their respective networks, she added.

Excellent logistics, including three major ports (Chennai, Kattupalli and Kamarajar) and national highways, enable efficient domestic distribution and exports, she said. This is the only belt with multiple large tyre players benefiting from proximity to Chennai’s auto hub, strong port access, and integrated supplier ecosystem, making it the most strategic tyre manufacturing base, she added.

Hyundai sources over half its tyres from the cluster

CS Gopalakrishnan, Whole-Time Director and Chief Manufacturing Officer, said Hyundai Motor India Limited, has been part of the cluster for the past 29 years. “We source around 54 per cent of the tyres used in our cars from vendors within this region,” he added.

The Oragadam-Sriperumbudur belt represents a confluence of demand, infrastructure, government support, and supply chain proximity, according to Kumar Subbiah, CFO of CEAT. Additionally, the availability of raw materials within the belt and the presence of reputable ancillary groups, such as the Tube Investments Group, add to the strategic advantage of setting up operations here, he added.

JK Tyre: Progressive policies and manpower key to growth

According to Anshuman Singhania, Managing Director of JK Tyre & Industries Ltd., over the years, the region has firmly established itself as a critical hub for India’s automotive sector, including the tyre manufacturing industry. “It presents a compelling proposition for industrial investment offering progressive manufacturing policies, a business-friendly regulatory framework, access to world-class infrastructure and skilled manpower,” he said. The region’s location near Kerala, a key source of natural rubber, provides an additional supply chain advantage, making it an ideal base for tyre production, he added.

Apollo: ₹5,500-cr invested to build Asia’s largest tyre unit

The Oragadam-Sriperumbudur belt is also close to the main city and townships, which offer world-class medical facilities and educational institutions. All these factors combined make this cluster important for the Tyre Industry, C Thomas Mathew, Unit Head, Chennai Plant, Apollo Tyres Ltd, said. Till date, the company has invested around ₹5,500 crores in this belt, towards setting up and expanding Asia’s largest tyre manufacturing facility in Oragadam, and towards the Global R&D centre nearby, he said.

Published on July 29, 2025