Michelin Group and Apollo Tyres Ltd., an India-based tire company, have formed a joint venture company to capitalize on the booming Indian economy. Michelin Apollo Tyres Pvt. Ltd. will manufacture truck and bus tires tailored for the Indian market.

"With the rapid infrastructure development and the emphasis on construction of world-class highways, the transportation industry will receive a huge impetus," said Onkar Singh Kanwar, Apollo chairman & managing director.

The tires will initially be imported but the company expects to manufacture the tires within India by 2005.

According to Reuters, rising income and lower costs have sparked soaring demands for new cars in both India and China; Michelin has projected brisk sales in the Asia-Pacific region as a result.