APOLLO Tyres has set up its second exports hub in Thailand to cater to the ASEAN region, which contributes 40% to the company’s overseas income, doubling in the last three years, according to the firm.
Recently, the Indian tyre maker has opened its sales office in Bangkok to serve the entire ASEAN region with Thailand as the hub of operations. “This region would be catered to by exports out of India currently, ” the company said.
After Dubai for the Middle East region, Thailand is the second hub outside the company’s operations in India, The Netherlands and South Africa.
Apollo Tyres sells its range of passenger vehicle, 4×4, commercial and off-highway tyres in the ASEAN region. Tyres for this region are produced at the company’s four plants in India. Exports out of India are projected to grow at a double digit rate in the next few years.
The company’s global operation is divided into three divisions – Zone I, E and A. Zone I, which includes India, Middle East, ASEAN and the Asia Pacific region, which has brought in 67% of the company’s US2.5 billion turnover.
Commenting on the new development, Apollo Tyres Chief (Zone I) Satish Sharma said, “As a company, we are currently in our second phase of expansion. In the last few years, due to high customer satisfaction, the demand and acceptability of our tyres has increased manifold in the ASEAN region.”
The size of the commercial vehicle tyre replacement market in ASEAN is 6 million units a year. The fastest growing segment is the 22.6 million units a year passenger vehicle tyres, said Apollo.