CEAT signs Pirelli distribution deal
CEAT, India’s second largest two-wheeler tyre company, has signed an exclusive distribution partnership with Pirelli. Pirelli was once the owner of CEAT – Cavi Electrici e Affini Torino SpA – but RPG acquired CEAT in India in 1982. Nevertheless Pirelli continued to hold the global rights for the brand until five years ago.
Then Anant Goenka, MD, CEAT told that his firm bought the rights for the equivalent of around £5.5 million. Prior to the distribution deal Pirelli was being distributed by Celite and Ralson in India, but local news sources report that the Italian tyre maker was keen on a partner with a strong distribution network.
Uberto Thun, senior VP, Pirelli Tyre, is quoted as saying: “This is a commercial partnership where CEAT will be the sole distributor of our complete range of motorcycle tyres in India. The Indian motorcycle market is the biggest in the world and the premium motorcycle segment is growing strongly.”
According to the Times of India, CEAT has a market share of around 26 per cent in the roughly £500 million two-wheeler tyre market in India. MRF is said to be the leader with a share of about 35 per cent.