India, March 6 -- Pirelli is mulling expansion of its tyre production capacity in the US to offset the impact of US tariffs that came into effect from 4 March, company executives said on a 2024 financial results call.

The company has a contingency plan in place to deal with the US imposing 25 percent tariffs on imports from Mexico and Canada. CFO Andrea Casaluci clarified that although Pirelli's US business accounted for over 20 percent of company sales, the amount of tyre manufacture there is restricted. The company's Georgia plant can produce about 400,000 tyres annually. Pirelli imports about half of its US supply from Mexico and around 40 percent from Brazil and Europe in order to fulfil market demand in the US.

Pirelli has a backu...