New Delhi, Oct. 21: Continental AG of Germany, Europe’s second largest automotive tyre maker, today announced its foray into the motorcycle and scooter tyre segment in India.
Continental, which had a turnover of $14 billion last year, will be launching the two-wheeler tyres in association with Metro Tyres under the brand name Metro Continental.
Under the agreement of the two companies, Metro Tyres will manufacture and market the two-wheeler tyres in India while Continental will provide the technological support to the Indian partner.
Under an offtake agreement signed between the two companies, the German tyre giant has agreed to source motorcycle tyres from Metro to be sold in the international market under the Continental brand name.
“We are planning to export tyres worth Rs 20 crore under the Continental brand name,” said Rummy Chhabra, group managing director of Metro Tyres.
At present, the total market size of the two-wheeler market in India is approximately Rs 1,000 crore. The group plans to capture at least 5 per cent of this market in the next one year of their operations. India is the second largest motorcycle market growing at the rate of 10-15 per cent each year, Chhabra said.
The group has earmarked a budget of Rs 4 crore for the launch and promotion of the tyres, out of which nearly 50 per cent will be spent on ‘consumer contact programme’.
Refusing to reveal the prices of these tyres, Chhabra said, “It will certainly not be more than our competitors. Our product will meet international parameters of safety and durability.”
There will be four different tyre sizes — two for motorcycles and the other two for scooters.