Apollo aims for leadership in Indian two-wheel tyre market, Europe next
Apollo Tyres is aiming for leadership in the premium two-wheeler segment in India with the inauguration of a dedicated two-wheel cross-ply and tyre manufacturing operation. India is the largest two-wheeler market in the world, and still has a headroom for further growth. In light of the Covid-19 pandemic, demand has increased as people move away from shared/public transport and gradually moving to own a personal vehicle. However, while India is at the forefront for Apollo’s venture into the two-wheel segment, the company is also hinting that it plans to export two-wheel tyres to Europe and North America.
Commenting on the leadership drive in the premium two-wheeler segment, Neeraj Kanwar, vice chairman and MD Apollo Tyres Ltd, said: “We are aiming for a strong foothold in the high-value, highly profitable premium motorcycle tyre market, which caters to the top 20 per cent of motorcycle market in India, and the entire Europe and Americas market. We now have a global portfolio of high-end bias and steel radial tyres for the two-wheeler segment, which will be produced at our highly advanced and futuristic facility in Vadodara, Gujarat.”
According to Apollo, the premium tyres constitute nearly 20 per cent of the two-wheeler market in India and is the fastest growing segment: “The premium two-wheel tyre segment is witnessing an increasing shift and growth due to rapid urbanisation, rising consumer income levels and increasing young population, which is driving the demand for tyres as well in this category”, company representatives said in a statement.
Spread over more than 10,000 square metre area, the new two-wheeler tyre manufacturing unit is housed within Apollo Tyres’ Limda plant in Vadodara, in the western Indian state of Gujarat. This facility, which has an initial capacity to produce 30,000 motorcycle radials and 60,000 motorcycle cross ply tyres per month, will cater to the premium segment of the two-wheeler industry. With a modular layout of the facility, the capacity is designed to be replicated easily as demand increases.
Having entered into the two-wheeler tyre business in 2016, Apollo Tyres became India’s first company to launch zero-degree steel radial tyres, a global gold standard for motorcycle tyres, and now reportedly commands a double-digit market share in this segment.
The new two-wheel tyre plant was inaugurated virtually by the chairman, Onkar S Kanwar, while vice chairman and MD, Neeraj Kanwar and other supervisory board members of the company also joined on this occasion, along with select business partners.