Continental expanding in India's truck and auto tire market

Jan. 1, 2020
Following Continental's July acquisition of India?s Modi Tyres Co., Ltd., a new entity called Continental India, Ltd. is ramping up its operations in the Indian market.
Following Continental's July acquisition of India’s Modi Tyres Co., Ltd., a new entity called Continental India, Ltd. is ramping up its operations in the Indian market.

The company will be increasing production at its Modipuram plant to more than 500,000 bias truck and bus tires this year, and there are plans to continuously expand to more than 1 million units in 2013.

The firm is also pursuing a further investment of more than 50 million Euros to start production of radial tires for cars and commercial vehicles in the second half of 2013.

“In India, there is a rising demand for vehicles with high quality tires as well as premium technology,” reports board member and tire division chief Nikolai Setzer, adding that “we are convinced that radialization will be the driving force in the Indian truck tire market,” and the company is preparing “a solid base in order to meet that demand.”

In the near future, Continental plans to manufacture radials at the Modipuram plant and will “generate a competitive leap” by being able to offer both radial and bias tires via local production.

The company plans to increase its Indian workforce by more than a third from the current 1,600 employees up to 2,200 to 2,400 within the next few years.

Currently Continental has 110 regional distribution centers and about 1,400 dealers nationwide in India. New dealers will be added at regular intervals. A major portion of sales have historically come through the aftermarket.

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While a strong focus will still be applied to the replacement market, the company intends to build a significant share in factory fitments, according to Andreas Penkert, Continental India’s new CEO.

“This is a milestone for our corporation in India,” says Penkert. Continental boosted its Asian sales by almost 50 percent to more than 4 billion Euros last year. The company is also Europe’s market leader for car tires with more than 30 percent of all new European cars leaving the factory on its tires. Sales of commercial vehicle tires have been successful as well, he notes.

“With this legacy and a long-term vision for the industry, we start this first direct initiative of the tire division here in India with full strength and dedication to make it a success – for our customers, for Continental and our employees, and for the region,” Penkert says.

For more information, visit www.continental-truck- tires.com.

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