Home-grown tyre brands targeting the non-urban markets would make no big news, but a German tyre giant betting big on the countryside deserves a headline grabbing story. This is what we learnt in an exclusive with Continental Corporation, which has been ranked the best Automobile Partsmaker in the world. The Indian arm of the German multinational giant is keen to establish itself as premium brand with superior quality products. In this extremely competitive industry they distinguish their products as German engineered, reliable and tech-driven.
In a tete-a-tete with Motorindia, Ms. Mallika Rawal, National Marketing Manager, Continental India (Truck Tyre Division), shared: “Although the potential in the urban market continues to be huge, especially with regard to radial tyres, strong growth is expected from Tier II and III markets, which are the semi urban and rural areas. The infrastructure development in the rural markets will further drive this growth. The key to being successful in Tier II and III markets is to offer reliable products, tailor-made for the developing rural infrastructure. 
We have a long history of more than 140 years in the tyre business worldwide, having succeeded in different geographies, with varying terrains. In India, from the very beginning we learnt that vast majority of the fleets still use both Radial and Bias Truck Tyres and are hybrid in the sense of parallel usage of the same. Taking that into consideration, we chose to become the only multinational company in India with a German legacy, to offer both Bias and Radial product portfolio. Currently we are focusing on aligning and customizing our portfolio to the Indian Market and providing our customers with the Lowest Overall Driving Costs which would be generated by higher tyre mileage and lower fuel consumption of our products.
Continental India has affirmed that the Indian auto industry has the potential of tremendous growth. It has high growth rates, huge demand for transport capacities, a growing OE sector and increasing demand of premium vehicles (be it truck, bus or passenger cars). With the expansion of infrastructure and especially its road systems, India is showing a promising future within the Asia Pacific Region. The availability of a large pool of talent and one of the world’s youngest populations makes India an emerging force in the global automobile industry, as indicated by the company.
Continental believes that with its technical capabilities, it can rule the roost in the Indian market. Ms. Rawal stated: “As a matter of priority, we are aiming at being the tyre company of choice in India and not just the biggest. We aim to become the best solutions provider in our industry rather than just a company having good products, so when our customers face an issue, we are the only company our customers approach for solutions. 
Once we reach this position, the generated return will automatically fuel our growth.”
The globally-acclaimed tyre maker had recently started production and distribution of its radial truck tyres in the Indian market in April this year. With an initial annual production capacity of 220,000 radial truck tyres, a dealer network of more than 1,400 outlets and sales & customer service teams across the country, the German giant is well-established in India and geared up for the long haul.
Continental’s initial radial tyre product portfolio for India covers the Goods, People, and Construction segments. In the Goods segment, the HSR2 steer tyre and the HDR2 drive tyre offer strong reliability and high mileage. For the People segment, Continental launched a dedicated coach tyre, which stands out through its comfortable ride, excellent mileage and directional stability. The high-tech construction tyres, HSX2 and HDX2 round off the product portfolio with their excellent durability and strong off-road performance.
The renowned tyre manufacturer also insists that their commitment to the Indian market doesn’t end here; rather they assure us that they are equally focused in the direction of bias tyres as well. Their recently launched Conti R & Conti HL are both high Non-Skid Depth (NSD) tyres providing higher mileage& longer run. The company is confident that its overall growth plans for the long term will attract more distributors to be a part of the Continental family.
So what lies ahead for the company? “Having set foot into the competitive arena of radial tyres, our immediate focus is to establish strong relations with existing fleets by providing them value-based solutions for their operations. The next centre of attention will include the high potential yet poorly serviced zones of India, i.e the semi-urban, Tier II & III cities. We also want to maximise our support to the dealers through our sales and customer service force and by offering them shop branding, marketing and service activities,” concluded Ms. Rawal.
Continental in India
Continental touched base with Asia in a joint venture with Sime Darby Berhad in 2003. The major acquisitions in Asia took place later with– Modi Tyres Company Pvt. Ltd. in India and tyre division of Sime Darby Berhad in Malaysia. With the Regional headquarters of commercial vehicle tyres in Malaysia, Continental has put a strong foot forward for growth in Asia.
In India, Continental has been technologically collaborating with leading Indian manufacturers of truck tyres since 1974. In 2011, with the acquisition of Modi Tyres, Continental India Ltd. has established the presence of Continental branded truck tyres in India.
Continental India Ltd. has its truck tyres production facility at Modipuram in Uttar Pradesh. To meet the increasing annual demand of truck tyres in the Indian market, the production facility is modernized and the capacity is being ramped up to cater to the growing number of customers.
 “As a matter of priority, we are aiming at being the tyre company of choice in India and not just the biggest. We aim to become the best solutions provider in our industry rather than just a company having good products, so when our customers face an issue, we are the only company they approach for solutions. Once we reach this position, the generated return will automatically fuel our growth.” – Ms. Mallika Rawal, National Marketing Manager, (Truck Tyre Division), Continental India |
 “Given our commitment to the premium segment and to our customers, we are continuing our efforts in improving profitability and in providing cost effective driving solutions to the customers. With more than 140 years of experience and achievements in providing mobility solutions worldwide, we have taken the role of being a trusted partner to our customer’s needs. These standards of quality and service help us both satisfy and exceed the expectations of our customers.” – Mr. Rajeev Kumar Agarwal, Director Sales and Marketing-CVT, Continental India |
Continental named Tire Manufacturer of the Year
Jury member David Shaw, Head of Research at Tire Industry Research, had this to say: “To my mind, Continental has combined the global strategic view with great products and a vision of a more sustainable future. The new plant in Sumter, USA, shows commitment to a global future, while the Hurricane machine demonstrates a desire to reduce, reuse and recycle. Meanwhile, their car and truck tire products continue to win praise from independent testers and fleets.” “We are delighted to be named Tire Manufacturer of the Year 2014,” said Nikolai Setzer, Continental Executive Board Member responsible for the Tire Division. “As our Tire Division is currently midway through realizing its Vision 2025, the timing couldn’t be better. This is great appreciation for our global tire team for the successful execution of our long-term growth plan, which is based on substantial investments in expanding our existing tire plants and building several new ones. We are also extending the high-tech testing capabilities of our proving grounds as well as investing in new premium products, processes and technologies at the highest level. In addition, as official sponsor of the 2014 FIFA World Cup in Brazil and of UEFA EURO 2016™ in France we are continuing to invest in our premium brand Continental.” At the same time, Continental is stepping up its presence in the tire trade, not least through acquisitions and the integration of additional franchise partners, preparing the ground for a long-term rise in the global volume of sales. Praising the ContiLifeCycle plant, jury member Joe Walter, an adjunct professor at The University of Akron said: “Utilizing end-of life rubber products should lead to a significant reduction in Continental’s corporate carbon footprint. This recycling initiative seems to be win-win for the consumer and the environment.” “We are delighted that our ContiLifeCycle plant has been named Tire Manufacturing Innovation of the Year,” said Christian Sass, who heads up the Truck and Bus Tire Retreading segment at Continental. “We see this as confirmation that, with our globally unique combination of rubber recycling and truck tire retreading, we have come up with a sustainable solution. In the space of 18 months our team transformed the vision of an innovative recycling solution into a reality. The outcome is a recycling solution that is even more sustainable and has reached a new level in terms of product performance and characteristics.” The Tire Technology International Awards for Innovation and Excellence are a celebration of far-sighted endeavor in the field of tire development and manufacturing. A shortlist of contenders is drawn up based on nominations from readers and the editorial team at Tire Technology International. The shortlist is then passed on to an independent jury of international tire experts who evaluate the nominees and select the winners. The awards are presented each year in February at a ceremony staged at the Tire Technology Expo fair in Cologne, Germany. |
