Continental AG, the Germany based leading auto component maker said on Wednesday that it will be investing about Rs 330 crores in the Indian market. The investment will be primarily aimed at enhancing the firm's existing production capacity and getting into the production of radial tyre segment. The firm has recently acquired tyre manufacturer Modi Tyres Co and plans to invest further at its Modipuram facility.
Speaking to reporters on Wednesday, Continental AG Board Member and Head of Tyre Division Nikolai Setzer said, "We are convinced that radialisation will be the driving force in the Indian truck tyre market. Our further investment of more than 50 million euros in radial truck tyre production will prepare a solid base in order to meet that demand."
So far, the company wasn’t in to manufacturing of radial tyres in the Indian market, and the new acquisition has enabled the firm to produce the same. Continental AG will commence production of radial tyres for passenger as well as commercial vehicle segment by year 2013. It plans to enhance the production capacity of Modipuram plant to 9 lakh passenger car radial tyres by year 2013, as compared to existing capacity of 2 lakh units.
In addition to this, the current capacity of manufacturing 3 lakh truck and bus tyres (TBX) per year will be boosted to 5 lakh units over the period of next two years.
