Continental has 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.
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Continental India will be increasing the production of the Modipuram plant to over half a million bias truck and bus tyres (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 tyres 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 tyres as well as premium technology. Thus, we are convinced that radialization will be the driving force in the Indian truck tyre market, and therefore our further investments of more than 50 million Euros in radial truck tyre production will prepare a solid base in order to meet that demand.”
In the near future, Continental plans to manufacture radial tyres at the Modipuram plant and says that ‘will generate a competitive leap’ by being able to offer both radial and bias tyres out of local production.
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The company says that 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.
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By GlobalDataAt present, Continental has access to 110 regional distribution centres 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.
