CEAT, part of RPG Enterprises, intends to invest Rs. 450 crore to increase production capacity at its Sriperumbudur plant near Chennai. This expansion will focus on the Passenger Car Utility Vehicle (PCUV) segment in an effort to meet the growing market demand over the medium term. The Chennai facility currently produces 70 lakh tyres annually, operating at 80 percent capacity utilization. The company intends to add 35 percent to the existing capacity, with the additional output expected to be operational by the end of FY27. The project will be funded through a mix of internal accruals and debt, according to the company. The tyre maker sees good growth potential in the PCUV category, driven by rising vehicle sales and changing consumer preferences. Ceat aims to solidify its market position by scaling up production and ensuring readiness for future industry requirements. This strategic move aligns with Ceat's broader objective of expanding its manufacturing footprint to support both domestic and export markets.