New Delhi, May 3: French tyre manufacturer Michelin Group has said it is going ahead with the plan to set up a manufacturing facility in India to make radial tyres for buses, trucks and passenger cars.

The company had earlier made similar plans with its Indian joint venture partner, Apollo Tyres. However, the JV, known as Michelin Apollo Tyres Ltd, collapsed last year with the two partners parting ways.

“We have plans of setting up a manufacturing facility in India to make tyres for buses, trucks and passenger cars and are closely watching the growth of this market. Our decision to set up a base here will be completely market driven. There are no changes to our initial plans,” said Herve Dub, CEO, Michelin India.

He, however, declined to give any time frame for setting up the plant. “We cannot give any deadline, but will do whenever the time is right,” he said.

At present, Michelin India imports tyres from its production facilities in China and Thailand.

Earlier, Michelin Apollo Tyres had agreed to undertake manufacturing, marketing and sales of truck and bus radial tyres, as well as marketing and sales of other tyres.

Today, Michelin launched a tyre in the Indian market ? energy XM 1 ? designed to cater to cars in the midsize segment.

These tyres use a silica-based technology which is expected to reduce the rolling resistance of tyres. Also, this will prove to be more fuel efficient for cars.

“The price of energy XM 1 tyres will be 5-10 per cent higher than our tyres available in the 14-inch segment,” said Chandan Thakur, brand manager.

At present, Michelin has a market share of less than 1 per cent in the Indian tyre industry and globally it has a share of 19.4 per cent.