Continental AG To Enter Indian Tyre Market

World's fourth largest tyre maker, Continental AG is looking forward to enter the Indian tyre market owing to the huge demand for tyres. According to Helmut Matschi, Member of the Executive Board Continental AG, Interior Division, "India is one of the key markets for our future growth and Continental AG is interested in the passenger car tyre market as well as looking for opportunities to enter the market." He added that, it is too early to say how it rolls out and when the company will enter the market.

The Commercial Vehicle Tyre division had vivified its JV with Modi Tyres in 2009. As per the JV, Modi Tyre would manufacture around 10 lakh tyres which will be sold under the Continental brand name.

The Indian passenger car tyre market is rapidly increasing by 35 to 40 per cent, while commercial vehicle market is growing by 50%. The two-wheeler market is growing by 30 per cent. Hence, there is lot of scope for tyre makers in the country to expand the business in this flourishing market.

Claude also stated that since many Original Equipment Manufacturers are readying cars for export market, they need high quality tyres. He said that the company will be investing in technical innovation and R&D and increase the head count by 30% in 2010. Currently, it had 750 personnel, including 600, who are working with service providers.

Besides, Continental India is also looking for increasing localisation for its global auto market, but the extent of localisation is yet to be informed by the company. As of now, they will be looking at increasing capacity as the business grows. In future, the company is expecting that by 2013, 25% of worldwide sales in automotives would be in Asia.