CEAT Tyres Deploys AI Agents, Logs Major Productivity Gains

CEAT Ltd is stepping up its digital transformation journey with the deployment of AI agents across customer experience, procurement, and sales functions, delivering tangible business gains in the second quarter (Q2) of FY25–26. These AI-driven systems have enabled 8–10% productivity improvements and 30% faster decision-making cycles, positioning the tyre major firmly on the path to a data-driven future.

According to Debashish Roy, Chief Digital Transformation Officer, CEAT, the company’s AI agents are reshaping how decisions are made and executed. “At CEAT, we are reimagining the future of mobility through the power of data and AI. In Q2, we made significant strides in deploying AI agents across key functions — enhancing tyre selection journeys through our website bot, enabling smarter sourcing in procurement, and accelerating fleet growth in sales,” said Roy.

The deployment has also enhanced data transparency and trust across teams, while improving customer experience through faster response times and personalised engagement. Beyond AI, CEAT ensured the seamless implementation of GST tax slab reforms, enabling customers to instantly receive the benefits of tax adjustments — an initiative that strengthened customer confidence and showcased CEAT’s operational agility.

Inclusion of Chennai plant in WEF’s Global Lighthouse Network (GLN)

A major achievement powered by the acquisition and building of the digital capabilities of CEAT Tyres was the inclusion of the company’s Chennai manufacturing plant in the World Economic Forum’s (WEF) GLN. Arnab Banerjee MD & CEO, CEAT Tyres said, “The recognition of our Chennai plant as part of the World Economic Forum’s Global Lighthouse Network is a significant achievement for CEAT, being our second plant to join this elite group. By implementing advanced digital solutions, we have improved dispatch turnaround by 54% and enhanced labour productivity by 25%. This milestone highlights our unwavering dedication to utilising digital transformation to foster operational excellence, sustainability and innovation across all our manufacturing units.”

The WEF’s Global Lighthouse Network serves as a forum for identifying manufacturing facilities that have successfully achieved substantial outcomes through the implementation of 4th Industrial Revolution (4IR) technologies, including artificial intelligence (AI), industrial Internet of Things (IIoT), robotics, and advanced analytics.

The company’s Vice Chairman Anant Goenka and Chairman H. V. Goenka also acknowledged the importance of this inclusion in their message to the shareholders in the annual filing of FY24-25. According to the annual filing, some of the benefits from the adoption of advanced digital solutions in the Chennai plant include: “The Chennai plant managed three times more Stock Keeping Units (SKUs), faster order fulfilment, coupled with new product launches at twice the speed with productivity improvement in assembly process. Deployed over 30 digital solutions, including operational research models for reducing turnaround time, advanced analytics for predictive control and machine learning-based design.”

Digitisation peaks in FY24-25

CEAT Tyres has continued to step up its investment in digital and IT infrastructure through higher software spending in FY 2024–25. The company’s capitalised software assets rose from Rs 157.9 crore in FY 2023–24 to Rs 171.5 crore in FY 2024–25, reflecting ongoing deployment of enterprise software, analytics tools, and automation platforms across operations, as per the company filings.

During FY 2024–25, CEAT added new software worth about Rs 13.6 crore, slightly higher than the Rs 12.6 crore added the year before. This indicates sustained digital expenditure as the company modernises its ERP backbone, enhances data-driven decision-making, and scales digital interfaces across manufacturing and supply chain systems.

Plans for H2, FY2025-26

Looking ahead, CEAT plans to extend its AI footprint into manufacturing and quality functions in the second half of FY2025-26. This next phase aims to drive autonomous operations, enhance product quality, and improve profitability — aligning with CEAT’s broader premiumisation and efficiency goals.

“At CEAT, we embody the RPG Group’s ethos of innovation and digital readiness,” Roy added. “Our focus is on leveraging technology to sustain momentum, elevate customer delight, and stay ahead in a rapidly transforming industry.”