Continental AG has announced that it has concluded an agreement with Metro Tyres Ltd, New Delhi, on the production and marketing of motorcycle and scooter tyres in India.

Under the terms of the agreement, Metro Tyres, the Indian market leader for bicycle tyres, will receive technical assistance from the German company for the production of tyres for motorised two-wheelers. The tyres will then be sold as Continental brand tyres on the Indian market.

Continental says that it is planned that the number of tyres to be manufactured under licence will grow steadily from 300,000 units in 2003 to 1.5 million units per annum by 2007.

Continental says this agreement is significant as it gives the company an opportunity to penetrate India’s vast two-wheel tyre market, with annual unit sales in the order of 22 million (original equipment and replacement business).