Continental has acquired the 100% shareholding in Modi Tyres Company Limited (MTCL), a subsidiary of Modi Rubber for EUR18.5m (US$26m).

Further to the announcement in April, Continental said it had now received the necessary regulatory clearances and has completed the acquisition. Conti said both parties are declining to reveal other commercial details of the transaction.

MTCL has now become a fully-owned subsidiary of Continental Corporation and will be renamed as Continental Tyres India Limited. The new entity will focus on local production and distribution of bias and radial truck and bus tyres as well as radial passenger car tyres for the Indian market.

“The acquisition of MTCL underlines our commitment to the Indian market,”said Continental head of passenger and light truck (PLT) tyre division Nikolai Setzer. It is part of our strategy to invest into local production of both passenger car tyres and truck tyres in growing markets in Asia.

“India’s truck tyre market is of outstanding relevance worldwide and exceeds – with a size of 18m tyres per year already – the Western and Central European market.”

A statement from Conti noted the PLT market is showing substantial growth rates, both in replacement and original equipment business.

Continental will have its registered office in Delhi with manufacturing facilities both in Modipuram and Partapur.