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Time of India
13-06-2025
- Automotive
- Time of India
Continental Tires aligns India strategy with SUV market shift
Amid the rising SUV and premium car sales in the country due to shift in consumer preferences, the market for large tyres is also growing. To capitalise on this demand, Continental Tires has recently announced plans to invest approximately ₹100 crore (€10.5 million) in India to expand its manufacturing capabilities and product portfolio. 'Currently, we can produce up to 20-inch tyres. With this investment, we aim to build capability for up to 23-inch sizes,' said Samir Gupta, MD, Continental Tires India , in conversation with ETAuto. The fresh ₹100 crore investment will be rolled out in phases over the next 18 to 24 months. 'The funds will be used to install new machinery and tooling at the plant. We are focusing on increasing capacity and improving our ability to meet rising demand for larger tyre sizes,' Gupta added. The move comes in line with the company's sharpening focus on ultra high performance (UHP) tyres. 'While the overall industry is growing modestly, this segment is expanding at over 20 per cent CAGR,' Gupta said. The Hanover-headquartered firm currently holds a single-digit share of the Indian tyre market, which is dominated by players like MRF, Apollo Tyres, JK Tyre, and Ceat. 'We are the youngest player in the Indian tyre industry,' Gupta noted. Continental also shared that all its tyres are now EV-compatible. However, the Modipuram plant, which has been serving only the domestic market, will continue to do so with no current plans for exports. In April, ETAuto reported how Ceat is also shifting to dual-compatible tyres for EVs and ICE cars . Earlier this month, the company announced it would discontinue its Truck and Bus Radial (TBR) tyre manufacturing operations as part of efforts to ensure the long-term viability of its India business. This includes shutting down the dedicated TBR production line at its Modipuram facility in Uttar Pradesh. The decision follows persistent challenges in the segment, primarily stemming from intense price sensitivity. Demand rebound The Indian tyre industry, which peaked in 2021 due to post-COVID demand, is poised for a better 2025 compared to 2024, according to Gupta. In 2024, the Indian tyre market was valued at $12.84 billion, and is projected to reach $29.16 billion in 2030, according to Wright Research. A key reason for recent sluggish growth was delayed tyre replacements from 2020–21, as consumers typically stretch tyre use to four years. With that cycle now maturing, he expects a demand rebound, especially in the replacement market, by the second half of 2025. Citing strong GDP growth, captive consumption, and infrastructure push, he has projected the overall tyre market could potentially double revenues over the next 5-6 years. Last year, Continental introduced its UltraContact NXT series in India. At this year's Bharat Mobility Global Expo, the company followed up with the launch of its Seal and Silent tyre range, aimed at enhancing safety and cabin comfort. In August last year, the Faridabad-based company also inaugurated an IT hub in Bengaluru, which is an extension of its Asia Pacific IT operations based in Malaysia. According to Gupta, the company is 'significantly' scaling up its headcount at the facility, which focuses on delivering IT solutions across manufacturing, R&D, and supply chain functions. The hub claims to support Continental's global operations, providing services to other markets beyond India.
Time of India
09-06-2025
- Automotive
- Time of India
Tyre maker Continental to invest ₹100 crore in India to expand passenger vehicle business
Tyre maker Continental said it is planning to invest about Rs 100 crore in India to enhance production capabilities and product range for its passenger vehicle and light truck business. The expansion underscores Continental's focus on producing tyres that are specially engineered for Indian consumer demands, with a strong emphasis on product performance and premium quality standards, the Hanover-headquartered firm said in a statement. The company plans to invest around Rs 100 crore (10.5 million euros) to enhance manufacturing capabilities in India and to expand its passenger car and light truck tyre portfolio, it stated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Medical Mystery Solved: Dementia and Memory Loss Has Been Linked To This Common Thing. vitalgethealth Click Here Undo The company, however, did not share any timelines for the completion of the investment. "With our 'in the market, for the market' approach, we're aligning our portfolio to reflect the evolving lifestyle needs of Indian drivers, from daily commutes and long-distance travel to changing expectations around comfort, safety, and convenience," Continental Tires India MD Samir Gupta said. Live Events The company expects strong growth potential in larger-inch and ultra high performance tyres designed for SUVs, 4x4s, and sporty vehicles, aligning seamlessly with current market trends. Continental will also expand its all-terrain product portfolio with the introduction of the CrossContact AT2 this year, it added. The company has manufacturing operations for passenger and light truck tyres at Modipuram in Uttar Pradesh 's Meerut. Earlier this month, Continental announced that it will discontinue its truck and bus radial tyre business in India.
Time of India
02-06-2025
- Automotive
- Time of India
Continental puts brakes on truck-bus radial tyre biz in India
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Tyre maker Continental on Monday said it will discontinue its truck and bus radial tyre business in India with immediate effect, as part of a strategic realignment of its product portfolio in the company will fully focus on the profitable growth of its passenger car and light tuck (PLT) tyre business in the future, it said in a part of this strategic transition, the company will discontinue its Truck and Bus Radial (TBR) tyre business, it includes its dedicated TBR manufacturing line at its Modipuram tyre plant in Meerut, Uttar Pradesh."The company's priority is to support its employees by providing assistance and support, such as career counselling, as well as exploring potential employment opportunities inside and outside of Continental. In addition, a voluntary retirement and separation scheme will be offered," the company company, however, did not share the number of employees being impacted by this company stated the realignment is aimed at ensuring the long-term viability of Continental Tires' operations in the country."In response to changing local customer demand, Continental will focus on further developing its local product portfolio and manufacturing footprint to align with future growth opportunities in the PLT tyre premium segment," it decision follows a comprehensive business review aimed at safeguarding and strengthening the company's competitiveness in the Asia-Pacific region, it intense competition and high price sensitivity in the TBR segment, sustaining long-term value from Continental's premium offerings has been a significant challenge, it noted."Hence, Continental's Truck and Bus Radial tyre business manufacturing operations in India will be discontinued as of June 2025," it company noted that India remains a strategically important market for its tyre 2024, the Hanover-headquartered Continental generated sales of 39.7 billion euro and currently employs around 1,90,000 people in 55 countries and tyre division employs more than 57,000 people worldwide and has 20 production and 16 development sites.
