Goodyear India said on Tuesday it would invest 500m rupees ($11m) to strengthen its sales network in India.
The company manufactures tyres at plants in Aurangabad in the western Maharashtra state and Ballabgarh in northern Haryana state, according to Reuters.
Goodyear India will set up 50 shop-in-shop branded stores by the end of 2006 and at least 250 more by end-2008, it said.
There are nearly 9,300 tyre retailers across the country, Goodyear estimates, besides thousands of informal sellers.
According to Reuters, India’s passenger radial tyre market is estimated to grow at 15% a year. Of this market, tubeless radials are growing even faster, at about 30% a year.
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By GlobalData“A number of car manufacturers have already switched to tubeless radials as original fitment,” Antonio Capellini, managing director, Goodyear India, said in a statement cited by the news agency.
“This will result in a strong demand for tubeless radials in the replacement market,” he said.