Company to Focus Only on Passenger and Light Truck Tyres
Leading German tyre brand Continental has shared that it will stop making truck and bus radial (TBR) tyres at its Modipuram plant in Meerut, Uttar Pradesh, by June 2025. The company will now focus only on passenger car and light truck (PLT) tyre production in India.
Reason Behind the Decision
This decision came after Continental did a full review of its business in India. According to the company, the TBR segment is highly competitive and very price-sensitive, making it hard for the brand to keep its value in this part of the business.
Perhaps, due to these challenges, Continental decided to change its focus towards the passenger vehicle tyre market, which has more scope for growth in India.
Modipuram Plant Will Continue Passenger Tyre Production
Although the company will stop making bus and truck tyre at the Modipuram plant, it will still make passenger and light truck tyres there.
In addition, Continental said that it will support workers who will be impacted by this change. The company will offer career counselling, internal and external job opportunities, and voluntary retirement options to help them move forward.
Continental’s Presence in India
Continental has been in the tyre business for over 150 years and is one of the biggest tyre makers in the world. In 2024, the company made sales of €39.7 billion and has about 190,000 employees in 55 countries.
Its tyre division alone earned €13.9 billion in 2024, and over 57,000 people work in this section globally. In India, the company runs its sales and distribution operations from Faridabad, manufactures tyres at Modipuram, and has an IT hub in Bengaluru.
Focus on Growing Passenger Tyre Market
Now, Continental wants to strengthen its place in India’s passenger vehicle market. It plans to develop more local tyre products and increase manufacturing abilities in this segment. The company will keep serving replacement customers and original equipment makers in the region.
In short, Continental is making a big change in India, but it still sees the country as very important for its Asia-Pacific business.
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