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Michelin says it will incorporate radio frequency identification (RFID) chips into all its car tyres by 2023.
The manufacturer says the technology is a cost-effective way of tracking tyres, and will help with predictive maintenance services.
It also says it will allow car safety systems such as ESP to fine tune their responses based on specific tyre characteristics.
In addition, Michelin says the technology will help to improve recycling rates, allowing proof of recycling and helping to improve the efficiency of energy recovery programmes.
The firm says it is working with carmakers to develop algorithms that could lead to new advances as cars become more connected, while dealers and workshops will also benefit as exact tyre identification and data will be easily accessible.
Michelin vice president of global sales for original equipment Michael Ewert said: "Since RFID technology ensures this exact tyre identification, it is conceivable in the future that drivers will see a tyre status display next to their fuel gauge.
"RFID in tyres makes many new business models possible and can also further increase safety when driving. We are convinced it represents a significant step forward in the tyre industry."
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