Michelin Aims for Over 20% Revenue from Non-Tyre Ventures by 2030

As the global automotive landscape shifts rapidly, Michelin is redefining its business strategy to reduce reliance on tyre sales. The French tyre giant announced ambitious plans to generate more than 20% of its revenue from non-tyre ventures by 2030, signaling a significant shift in focus toward diversification.

Currently, around 15-16% of Michelin’s income comes from services and innovative composite materials. The company intends to boost this figure through a combination of organic growth and strategic acquisitions, according to Maude Portigliatti, director of Michelin’s Business Polymer Composite Solutions unit.

One of the standout projects fueling this transition is a €60 million investment in a cutting-edge production plant near Lyon. Set to launch in 2026, this facility will produce 3,000 tons annually of 5-HMF — a bio-based molecule designed to replace fossil fuel-derived formaldehyde in resins, adhesives, and many other industrial applications. This plant is poised to become the largest global production site for 5-HMF, underlining Michelin’s commitment to sustainability and innovation.

This diversification strategy is a response to mounting pressures in the tyre market, where competition from cost-efficient Chinese producers and shrinking European demand pose challenges. Industry analysts from Jefferies have recognized Michelin’s promising outlook by upgrading the company’s stock rating to “buy,” citing its stronger earnings growth and reduced exposure to the volatile auto market.

By embracing new technologies and expanding beyond its traditional tyre business, Michelin is positioning itself to thrive in a rapidly changing market while advancing its commitment to sustainable and innovative solutions.

{Source: Times Live}

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