NEW DELHI, India (Feb. 15, 2001)—Group Michelin has put on hold temporarily its plans for a $115 million tire plant in India, a senior Michelin official said recently.
The official said shrinking profits in the Indian industry and uncertainty about the acceptance of radial truck and bus tires are the main reasons for postponing the factory.
Michelin had been given approval last year to set up a manufacturing unit in the state of Maharashtra, but it had not yet started work on the project.
The French tire maker, through its Michelin India Pvt. Ltd. subsidiary, said it has been importing and test marketing radial tires in small quantities in order to study the response to its products in the Indian market.