In Conversation: Didier Miraton,Managing Partner, Michelin Tyres

ZW: What is the idea behind the Innovation Day?

Miraton: The tyre is a technological product, and Michelin is a technology company. Constant innovation is what gives us our edge, and this is a way of displaying our latest technologies, which cover a great range of vehicles and applications.

ZW: Could you describe the relationship that Michelin shares with vehicle manufacturers? How important is it?

Miraton: Partnerships with manufacturers are very important, especially to an R&D driven company like ours. Manufacturer support plays a vital role in the development of new projects - so many times, our projects become the manufacturer's projects too. Something as unique and specific as the 63-inch tyre for earthmovers for instance, which is the largest tyre in the world, has become a reality because of the close involvement of Caterpillar with the project.

ZW: The global economic scenario is making things difficult for auto-makers - the international truck market is projected to go down by 20 per cent in 2009. What do you anticipate in these circumstances for your company, and how is Michelin planning to counter the situation?

Miraton: We are anticipating the reduction in demand, but also since almost 75 per cent of our business comes from replacement sales, the impact could be much lower. But we must accept and deal with the inevitable. The real point is in anticipating the problems and preparing solutions well before the shortages really hit. It is in difficult times that true value emerges, and our innovations give us an edge in this respect.

ZW: What plans does Michelin have for India?

Miraton: We are very close to deciding the location for our factory in India. We believe in the Indian market, which has been showing great potential especially after the rapid development of highways and infrastructure. We will be looking at the Indian truck market in a very special manner.

ZW: The Indian automobile space is still quite price sensitive - case in example being the Tata Nano and other low-cost cars being developed in our country. Is Michelin innovating on the price front as well to cater specifically to India and similar markets?

Miraton: A low-cost car, in my opinion, is also a high-tech car. We are aware of the volumes that this segment can unlock for us, it is a very interesting segment and we are watching the news very closely for it. Innovations from our end are underway.

ZW: Let's end with one for passion. Michelin is now absent from the top two forms of international motorsport - Formula 1 and MotoGP - both of which have adopted a single-tyre make policy. What is your take on the company's future in motorsport?

Miraton: We love competition, and it is at the heart of the Michelin philosophy. Our involvement in motorsport is critical not only for racing, but also for our R&D and its benefits to the public at large. Unfortunately, the current top forms of motorsport seem to be focusing more on entertainment than competition. Michelin is still actively involved in other forms of motorsport like the Le Mans series and the FIA GT, and once competition returns in F1 and MotoGP, we'll be back.