Continental Plans Major Ramp-Up Of India Operations Following Modi Tyres Acquisition
(lifePR) (Hanover / New Delhi, ).
- Production of bias truck and bus tires (TBX) grows beyond half a million units already this year and continuous growth to more than one million is planned
- Further investment of more than 50 million Euros in Modipuram in order to ramp up radial tire production for passenger cars and commercial vehicles
- Headcount to be increased by 600 to 800 over the next few years
Continental, one of the leading international automotive suppliers and the world's fourth largest tire manufacturer, today announced its expansion plans for the Indian market. Following the recent acquisition of Modi Tyres Company Limited (MTCL), the new entity Continental India Ltd is ramping up its operations significantly in both replacement and OEM business in India. Continental India will be increasing the production of the Modipuram plant to over half a million bias truck and bus tires (TBX) as early as this year. There are plans for TBX production to grow continuously to more than one million units in 2013. In addition, Continental India announced further investments of more than 50 million Euros to start production of radial tires for passenger cars and commercial vehicles in the second half of 2013.
Nikolai Setzer, Executive Board Member Continental AG and Head of the Tire Division, said today during a press meet in Delhi: "In India, there is a rising demand for vehicles with high quality tires as well as premium technology. Thus, we are convinced that radialization will be the driving force in the Indian truck tire market, and therefore our further investments of more than 50 million Euros in radial truck tire production will prepare a solid base in order to meet that demand." In the near future, Continental plans to manufacture radial tires at the Modipuram plant and will generate a competitive leap by being able to offer both radial and bias tires out of local production. This move will also create further job opportunities as Continental India Ltd plans to increase its headcount by more than a third from the current 1,600 employees up to 2,200 to 2,400 within the next few years.
At present, Continental has access to 110 regional distribution centers and about 1,400 dealers nationwide that provide links to truck fleets and end consumers. Fresh dealerships will be added at regular intervals. A major portion of sales historically came from aftermarket sales.
While a strong focus will still be the tire replacement market, Continental, as one of the leading international automotive suppliers, intends to build a significant share in OEM business also in India.
Commenting on the occasion, Andreas Penkert, designated CEO of Continental India Ltd, said, "This is a milestone for our corporation in India. Continental increased its sales in Asia at corporate level by almost 50 percent to over four billion Euros last year. Continental is Europe's market leader for passenger car tires. In the Original Equipment sector, over 30 percent of all new European cars leave the factory on Continental tires. For commercial vehicle tires, Continental is one of the world's largest manufacturers of premium truck, bus and industrial tires. 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."
In July 2011, Continental formally completed the acquisition of Modi Tyres Company Limited which included the existing TBX plant in Modipuram, the tube plant located in Partapur and all related operational assets to those plants along with all customer relationships. Alok Modi, member of the founding family of Modi Tyres Company Limited, will be on the Board of Directors of Continental India Ltd.
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