Hanover, Germany – Continental AG is looking to further consolidate its position among the world’s top tire makers as part of its Vision 2030 strategy, unveiled during a week-long capital market days event.
In a 16 Dec statement, Conti said its tire segment significantly increased global market share under the group’s preceding Vision 2025 strategy and the new strategy aims to “continue this success story”.
As part of this, smart, digital tire solutions and ambitious sustainability goals will be employed to achieve market success and differentiate products in the future.
On the sustainability front, Conti said it aimed to become “the most progressive manufacturer in the tire industry by 2030.”
Focus, Conti said, will be on the strategic topics of climate protection, low-emission mobility, a circular economy and sustainable supply chains.
In addition, the German manufacturer expects to invest heavily in R&D for new technologies, alternative materials and green production, in order to make its tires more energy-saving and environmentally friendly.
Under the latest strategy, the tire manufacturer plans to gradually modify its tire production so that it uses up to 100% sustainable materials by 2050.
Continental defines all materials as sustainable that originate in a closed material cycle, have no harmful impact on humans or the environment, are procured responsibly and are carbon neutral along the supply chain.
The business area also aims to become a “leading supplier” of service-based digital solutions by 2030.
Here, Conti expects its expertise in electronics, sensors and software for the mobility industry to provide it with “a decisive competitive advantage here.”
In addition, the tire manufacturer also aims to reinforce development partnerships with customers and other technology firms for service-based solutions.
In the mid-term, Conti said the business unit is aiming for an adjusted EBIT margin of around 12% to 16% and a return on capital employed (ROCE) of more than 20%.
In particular, Continental intends to further increase its share of growth markets of Asia and North America.
In the passenger-car tire segment, the German group aims to ‘systematically expand’ its global business with tires for electric mobility and ultra-high performance tires.
The truck and bus tire business is also to be further developed in all regions through the Conti360˚ fleet services, Conti said.
In the speciality tire business, which includes two-wheel, racing and industrial tires, the vision is for further growth, particularly in the agricultural tire segment.
“The future of mobility is characterised by its high degree of connectivity and safety as well as its convenience – regardless of the vehicle’s drive system," said Nikolai Setzer, who took over as the CEO of Continental at the beginning of the month.
"With our future-oriented technologies and our success-driven, global team, we will be among the winners of the transformation in the mobility industry,” he said unveiling the 2030 strategy, which focuses on strengthening operational performance, differentiating portfolio as well as connected & sustainable mobility.
