Metro has eye on passenger car market
Indian manufacturer Metro Tyres aims to significantly increase its share of India’s motorcycle tyre market and is considering entering the passenger car tyre segment after 2015. Managing director Rummy Chhabra disclosed this information to news agency the Press Trust of India while outlining the company’s investment plan for the next few years. PTI has not given any specific information on Metro’s intended activities within the passenger car tyre business, such as the extent, if at all, technology partner Continental will be involved.
Over the next half-decade, Metro will invest Rs 1 billion strengthening its business in India. This figure is only approximately £11.6 million, however the company plans to achieve a great deal with its billion rupees, including establishing a new factory.
“Our capex is Rs 100 crore (Rs 1 billion) for the next four to five years. We will mainly strengthen our presence in the motorcycle segment. We will set up a new plant in Manesar (a fast growing industrial town in the Gurgaon district of Haryana state),” Chhabra told PTI. When asked about the proposed plant’s capacity, Chhabra said “we will decide about all the details of the plant in the next three months. The plant will start production in the next two years.”
Metro Tyres currently operates seven plants across India. “Our target is to produce 72 lakh (7.2 million) units of motorcycle tyres every year in the next five years,” Chhabra stated. “We are currently enjoying only two per cent of automotive two wheeler tyre market. Our aim is to capture eight to ten per cent in the next two years.” Metro estimates India’s two-wheeler market to be 36 million units per annum and experiencing a growth rate of eight to ten per cent each year.
On 4 July the tyre maker also unveiled a new logo. According to Metro, the new identity is designed to profile Metro as “a company that understands youth aspirations and reaches out to young people, India’s dominant demographic segment, with cutting-edge products.”
“Metro Tyres has evolved significantly over the years with a view to staying ahead of the dramatic changes in the Indian business sector,” commented Chhabra. “Today, our company is present in more than 53 countries and is the largest exporter of bicycle tyres and tubes from India. Our new visual identity consists of a re-designed Metro name, appearing in italics to represent motion and speed. Complementing the logo, our advertisement campaign is a story of transformation: from a child to a youth. In doing so, it reflects who we are today and the company we aim to be tomorrow.”