New Delhi, Oct. 2: Continental AG may no longer be interested in Modi Rubber Ltd as it plans to enter the Indian car tyre market through a joint venture with Metro Tyres.
“Our interests in Modi Rubber have hit a roadblock. But the technology sharing for bicycle tyres with Metro Tyres has been very fruitful. So we chose it as our two-wheeler business partner also. If all goes well, then they may be chosen for making four-wheeler tyres too,” Continental AG managing director (motorcycle tyres) Jorg Essiger told reporters here today.
“Although we have deals with the Modis, MRF and others, the Modis were the most focused business partners. After that deal fell flat, we were looking for other partners,” Essiger added.
At the moment, the joint venture between Metro and Continental involves payment of royalty for technology and brand name sharing by the Indian partner and an import commitment from Continental’s side. While the company will retail its products under the Continental-Metro brand name in India; it will only be Continental in the international market.