Conti's big Indian investments include radial truck tyre plant

ERJ staff report (DS)

Hanover / New Delhi -- Continental has announced significant expansion plans for the Indian tyre market. Incuded is a plan to invest more than euro 50 million to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013.

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 cross-ply 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.

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 will generate a competitive leap by being able to offer both radial and bias tyres 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.

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Press release from Conti