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.
