Continental is a significant participant within the European tyre market, however within the Indian market an insignificant one. With an aftermarket-only enterprise technique, Continental plans to play a technology-led recreation to reinforce its presence in India. ”What we’re eyeing for is extra premium merchandise, and bringing extra applied sciences. We’re not taking a look at ramping up our quantity share considerably although we positively wish to develop our volumes,” Samir Gupta, MD, Continental Tires India, and Head of Central Area, BA Tires, APAC, mentioned.Clever tyre
In 2023, Continental launched what it calls an ‘clever tyre’ for the Indian industrial automobile sector. The tyre, geared up with a sensor, supplies data on tyre’s air stress, temperature, and kms run to the fleet proprietor by means of an app, and to the motive force by means of an indicator. In response to Gupta, it’s the first-of-its-kind within the Indian business.
An analogous providing for the passenger automobile phase is presently being developed collectively by Continental’s tyre and automotive enterprise divisions. Within the CV tyre, the sensors are placed on the internal strains of the tyres. Taking the identical method for passenger automobile (PV) tyres could also be tough as PV tyres have thinner partitions. “TPMS (Tyre Stress Monitoring System) is one thing that we’re nonetheless attempting to develop whether or not it may be embedded into the tyre itself. Can now we have options that are extra related to the motive force by means of the TPMS. That is what we’re engaged on,” says Gupta.
New tyre for on and off-road driving
Whereas an ‘clever tyre’ for PVs continues to be within the works, what Continental sees a rising alternative in is the Indian midsize automobile and SUV market. It has lately launched a brand new vary referred to as CrossContact H/T designed for ‘the market’s wants of driving on and off-road (80% on and 20% off-road)’. These tyres are designed for 15 and 18-inch rim sizes.
With this introduction, Continental seems to be to extend its single-digit market share which the corporate wouldn’t wish to disclose. In response to Gupta, the Indian aftermarket measurement is round 29 million items for PV tyres, and 17 million for M&HCV tyres. The estimated annual progress for the PV aftermarket tyre phase is 3-4%, and 5-7% for the CV tyre phase.
Finish of bias tyre manufacturing
Continental Tires began its India journey in 1975 with a know-how licence settlement with Modi Rubber. In 2011, it acquired the Indian tyre firm reportedly for INR 117 crore. The journey, which began with bias tyres for CVs, noticed the manufacturing of the final such tyre in 2023. Presently, the Modipuram plant, in Uttar Pradesh, produces solely radials, for CVs and PVs.
Although tube-type tyres have just about exited the PV phase, within the CV phase, Gupta says, their share is round 95%. Taking cognisance of this reality, Continental claims that it gives tyre know-how that permits re-treading as much as thrice, towards the standard as soon as within the business. “To offer that confidence to our prospects on our product, we give a casing guarantee even after the re-treading, although we’re not the re-readers,” says Gupta. In response to him, with a number of re-treading, the tyres can run for as much as 300,000 km.
New providing for CVs
To play the know-how card additional, Continental plans to launch a brand new vary of CV tyres, “between Q1 and Q2” of this calendar 12 months, which claims to assist in reaching 10-20% higher gas effectivity than Continental’s present vary. The rubber put on price may even be decrease, in keeping with the corporate.
Subsequent gen tyre for PVs,
On the PV aspect, together with the introduction of the CrossContact vary, Continental is introducing the subsequent technology ‘PremiumContact 6 tyres, an improve from its ‘SportContact 5’ tyre vary.
Even after the introduction of the most recent CrossContact H/T tyre vary, there are some gaps nonetheless which Continental plans to bridge. “Once I see the market, the overloading development is coming down due to numerous laws which have gotten increasingly more carried out now. Good for us. And, on the passenger automobile aspect we nonetheless do see some gaps by way of sizes which we’re including now,” Gupta mentioned.
What can also be making international tyre producers step up manufacturing in India is the Authorities imposed restriction on tyre imports, introduced in 2020. Until then tyre sizes 19-inch and above had been largely imported. “2021 or 2022 was the time after we obtained these 19- and 20-inch sizes into India, with a particular advertising and marketing line which was the SportContact 5,” Gupta mentioned.
With the Indian economic system in a wholesome state, and a revised upward progress revision, Continental seems to be at tapping the India alternative additional. Its automotive enterprise division, with a world technical centre, already has a significant presence. The tyre enterprise division, which is taking “child steps” after establishing the totally owned entity in 2011, has an R&D crew which coordinates with technical colleagues in Hanover and Malaysia to develop India-specific merchandise.
“All of the merchandise are tailored for India. We’re not promoting any product which we promote in every other a part of the world. The tyre robustness is the very best in these merchandise. We don’t promote this sort of robustness in Malaysia, or in Europe, or within the Americas, and never even in China,” says Gupta.
What Gupta would like to not discuss at this stage is his firm’s manufacturing capability. Nonetheless, in keeping with him final 12 months the corporate bought almost no matter it might produce, and for this 12 months he would say, “I can solely let you know that by the tip of this 12 months we are going to improve our present capability by double digit proportion of the present capability.”
The numbers will not be big, however the method being taken by Continental for its tyre enterprise in India is to take “child steps, not placing any stress on ourselves in order that we’re certain to promote all the things now we have, however we’re bringing applied sciences to the Indian market”.
As for India’s position within the total scheme of issues for Continental Tires, he mentioned, “I imagine India is at a stage the place nobody can ignore India, together with Continental.”
