FOLLOWING closely with the growth of the automotive sector in India is the tyre sector. Having recently acquired Modi Tyres Company Limited (MTCL), Germany-based Continental has set up a new entity, Continental India, and will ramp up its operations significantly in both the replacement and OEM business.
Continental India will increase output at its Modipuram plant to 500 million bias truck and bus tyres (TBX), with production to grow continuously to more than 1 million units in 2013. The company says it is convinced that radialisation will be the driving force in the Indian tyre market and will invest more than EUR50 million to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013.
Continental also plans to manufacture radial tyres at the Modipuram plant, making it able to offer both radial and bias tyres out of local production. This move will also create further job opportunities as Continental India plans to increase its staff force by more than a third from the current 1,600 employees up to 2,200 to 2,400 within the next few years. (PRA)
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