German tyre maker Continental is betting big on India market as it finds better growth prospects here compared to other BRICS nations.
“While we don’t find much growth in developed countries, there is ample growth opportunities in BRICS countries and India has been accorded premium place,” said Continental Head of Tyre Division, Nikolai Setzer while talking to The Pioneer.
“With the launch of truck and bus radial tyres we have completed our product portfolio in India and now we can grow our business here with premium solutions,” added Setzer
Keeping strong growth prospects in mind the company is also looking to expand its product offering in the passenger vehicle radial tyre segment apart from entering into the construction equipment tyre category.
We will add products to our passenger vehicle radial tyre portfolio and it will be completed by the end of the year. Besides, we would be launching construction tyres later this year,” Setzer said.
The company is looking at a production capacity in the range of half a million to a million units in the segment, he said, adding the present production was negligible as it was started only at the end of last year.
The Indian truck tyres replacement market is pegged at around 14 million units per annum, out of which around 4 million units are radial tyres.
Over the last five years the market has grown by around 24 per cent and has witnessed a strong shift towards radial tyres.
Besides tyres, Continental also markets various automotive components including brake systems and infotainment solutions.
The company currently has over 800 branded dealers which would be extended to around 1400 by the end of 2014. “ We will have our focus on untapped areas while going for dealers,” he added.
The firm acquired Modi Tyres Company for around Rs117 crore in 2011 and invested around 50 million euros on Modipuram facility since since then to make it fit to produce radial tyres.