Continental plans 50 mn euros investment in India

August 24th, 2011 - 9:44 pm ICT by IANS  

New Delhi, Aug 24 (IANS) International tyre manufacturer Continental Wednesday said that it plans to invest 50 million euros in its Indian operations for ramping up production of passenger and commercial vehicles tyres.

The company announced its intention to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013 here.

“In India, there is a rising demand for vehicles with high quality tyres as well as premium technology,” said Nikolai Setzer, executive board member, Continental AG.

According to Setzer, the company is focusing towards manufacture of radial tyres for trucks, as it sees robust demand in the segment in the coming years.

The company also plans to increase production at its Modipuram plant beyond half a million truck and bus tyres (TBX) in this year.

“TBX production is planned to continuously grow to more than one million units in 2013,” the company said in a statement.

The company also intends to increase its headcount by more than a third from the current 1,600 employees up to 2,200-2,400 within the next few years.

The company recently acquired Modi Tyres Company Limited (MTCL) and formed the new entity, Continental India Ltd, in July.

Currently, the company has a truck and bus tyres (TBX) plant in Modipuram, the tube plant located in Partapur, and all related operational assets to those plants including all customer relationships.

The global tyre company with sales of euros 26 billion in 2010 said that it will also focus on the tyre replacement market.

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