Nearly two decades after ceasing operations at its Port Harcourt manufacturing facility in Nigeria’s oil-rich Rivers State, the French tyre titan Michelin is strategically re-entering a market it once led. Although there are no current announcements about reopening a local factory, Michelin aims to revitalize its brand presence, deepen its engagement within Nigeria, and establish the country as a pivotal growth center in Sub-Saharan Africa.
Michelin’s 2007 closure of its Nigerian production site marked a significant turning point in the nation’s tyre industry. Alongside Dunlop, Michelin had been a dominant force in domestic tyre manufacturing. However, challenging business environments, erratic government policies, and a surge of inexpensive Asian tyre imports compelled both companies to halt local production. By 2008, imports accounted for approximately 90% of tyres sold in Nigeria, a dramatic rise from 25% in 2005, fundamentally transforming the market landscape.
Currently, Nigeria’s tyre sector is valued at around $820 million, with projections estimating growth to $1.12 billion by 2030, expanding at a compound annual growth rate of 6.4%. This growth is fueled by Nigeria’s expanding vehicle population, which exceeds 40 million, and ongoing development of road infrastructure. Despite this, the market remains heavily skewed towards affordable tyre brands, with roughly 80% of consumers opting for budget-friendly options, predominantly sourced from Asia.
For Michelin, this scenario presents a dual-edged sword: a significant challenge paired with a promising opportunity.
“Although many Nigerians believed Michelin had exited the market after production stopped, that was never the case,” explained Amaury Vadon, Managing Director and Vice President of Sales for Michelin Sub-Saharan Africa, in a conversation with TechCabal. “We ceased manufacturing locally but maintained commercial operations and are now more engaged than ever.”
Reestablishing a Local Footprint
Michelin has revamped its Nigerian operations, shifting from an export-focused approach to establishing a wholly owned local entity. The company now operates an office in Lagos’ Victoria Island, staffed by Michelin personnel who manage direct sales, marketing initiatives, and customer relations.
“We are not mere importers or distributors,” Vadon emphasized. “Having Michelin employees on the ground is crucial. They communicate our innovation, quality, and the unique value our products bring.”
The company is concentrating on two key growth areas: passenger vehicle tyres and sectors beyond traditional road use, including agriculture, construction, and port logistics. The passenger car tyre segment alone is expected to generate over $820 million in revenue by 2025, making it the largest segment within Nigeria’s tyre market.
Commonly used passenger tyres in Nigeria, such as 195/65R15 and 205/70R15, typically measure between 195 and 205 millimeters in width and fit 15-inch rims. These sizes are favored for their robustness and dependability on Nigeria’s often challenging road conditions.
As Nigeria’s automotive preferences evolve, with a rising demand for larger and more premium vehicles, the market for high-end tyres sized 18 inches and above is expanding. Concurrently, government investments in road construction and infrastructure have opened avenues for growth in heavy-duty and off-road tyre categories.
“We recognize strong market potential not only in Lagos but also in Abuja and Port Harcourt,” Vadon noted. “We are establishing partnerships and local inventory in Abuja to enhance delivery efficiency and customer service.”
Navigating a Market Saturated with Low-Cost Tyres
One of Michelin’s primary hurdles in Nigeria is the prevalence of inexpensive and second-hand tyres, locally referred to as tokunbo. Despite the associated safety risks, affordability remains the dominant factor influencing consumer decisions.
Although the importation of used tyres has been banned since 2007 due to their higher likelihood of blowouts and accidents, they continue to constitute a significant portion of Nigeria’s informal tyre market. By 2023, it was estimated that around 40 million used tyres were in circulation, primarily purchased by low-income drivers prioritizing cost over safety. Enforcement of the ban is inconsistent, and because these tyres are not captured in official trade statistics, their actual market share remains unclear. While government crackdowns have reduced their visibility in formal channels, demand persists in informal markets where price considerations overshadow regulations.
“Tyres are often seen as a necessary expense rather than a desirable purchase,” Vadon remarked. “Many consumers view all tyres as identical, focusing solely on price rather than performance or technological advancements.”
To address this, Michelin is emphasizing consumer education and awareness. Planned marketing campaigns for 2026 aim to inform Nigerian motorists about the long-term benefits of premium tyres, including improved braking, enhanced durability, and better fuel economy.
“We don’t expect every Nigerian to choose Michelin,” Vadon acknowledged. “However, our goal is to ensure that purchasing decisions are informed. When consumers understand the safety and performance differences, some will opt for premium options, which is a positive outcome.”
Innovation as a Driving Force
Innovation remains at the heart of Michelin’s strategy and investment. The company operates three major global Research and Development centers located in France, the United States, and Japan, employing over 15,000 engineers and scientists dedicated to advancing tyre technology.
In 2014, Michelin invested €650 million (approximately $864 million) in R&D across 25 facilities worldwide, supported by 6,600 specialists. By 2023, this investment nearly doubled to €1.2 billion ($1.4 billion), underscoring the company’s commitment to pioneering technologies such as tyres for electric vehicles, sustainable materials, and digital mobility solutions. Michelin consistently allocates about 3% of its annual revenue to R&D, surpassing the industry average of 2-2.5%.
At its flagship research campus in Ladoux, France, more than 2,500 researchers focus on product innovation and rigorous performance testing. In 2023 alone, Michelin secured 269 new patents, bringing its global active patent portfolio to over 11,000.
“Innovation defines Michelin’s identity,” Vadon stated. “It’s the foundation of our global leadership. Whether designing a passenger tyre optimized for safety or a construction tyre engineered for endurance, every product embodies innovation tailored to its specific use.”
Nevertheless, these technological advancements come with higher costs, a challenge Michelin must carefully manage in Nigeria’s price-sensitive market. The company aims to bridge this gap by highlighting the long-term value and cost-effectiveness of its products.
Nigeria’s Strategic Importance in Michelin’s African Ambitions
Nigeria occupies a central role in Michelin’s Sub-Saharan Africa strategy, which is built around three core pillars: people, profit, and planet.
“Nigeria is a cornerstone of our West African operations,” Vadon emphasized. “It contributes significantly to our business, offers a wealth of talent, and is a focal point for our sustainability initiatives.”
On the environmental front, Michelin is initiating sustainability projects in Nigeria focused on tyre recycling and circular economy practices. Starting in October 2025, the company plans to pilot tyre recycling programs that transform old tyres into new products such as bags and industrial materials, aligning with Michelin’s broader commitment to waste reduction and responsible manufacturing.
Looking Ahead: Michelin’s 2026 Strategy
As Michelin gears up for an expanded presence in 2026, its immediate objective is to solidify its foundation and accelerate growth. The company intends to enhance its footprint in major urban centers, broaden its customer reach, and boost brand recognition through targeted awareness campaigns.
“In 2026, Nigerians will unmistakably see Michelin’s renewed presence,” Vadon affirmed. “The groundwork has been laid; now it’s time to increase visibility and deepen engagement.”
Looking further ahead, Michelin aspires to be an integral part of Nigeria’s mobility ecosystem-not just as a tyre supplier but as a beacon of sustainable innovation.
“Our vision for 2050 is to be present, profitable, sustainable, and to nurture Nigerian talent that will lead Michelin’s future,” Vadon concluded. “Having a Nigerian succeed me would be a proud milestone.”
With Nigeria’s roads becoming busier and its economy diversifying, Michelin is betting that its blend of innovation, local commitment, and strategic presence will restore its leadership position in the market.