The Hannover based tyre maker Continental tyres is set to grab trucks and buses radial tyre market in India with the starting of local production. With the initial annual production capacity of 2,20,000 truck tyres, 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.
The German firm acquired Modi tyres in 2011 and currently owns a dealer network of more than 1,400 outlets and sales & customer service teams in more than 70 cities across the country.
“Introducing Continental radial truck tires into the Indian market is a momentous occasion for us. India is the second largest market for truck tires in the Asia-Pacific region (APAC) and we strongly believe that our premium technology products, manufactured locally and distributed through our Indian market organization, will make Continental a preferred partner in the tire replacement and original equipment business,” states Dr. Andreas Esser, Head of the Commercial Vehicle Tires business at Continental.
The company's Modipuram facility at Meerut in Uttar Pradesh has a production capacity of 1.1 million bias tyres for trucks and buses annually. It has now added another capacity to manufacture 2.2 lakh trucks and buses radial tyres annually at the plant.
The Indian truck tyre replacement market has a volume of approximately 14 million units per year, out of which almost 4 million units are radial tires, whereas the other 10 million are bias tires. Over the last five years, the market has not only grown by approximately 24 percent, but has also seen a strong shift towards radial tires. It is expected that radialization will gain further momentum in the next years.