Continental Tires aligns India strategy with SUV market shift

Amid the rising SUV and premium car sales in the country due to shift in consumer preferences, the market for large tyres is also growing. To capitalise on this demand, Continental Tires has recently announced plans to invest approximately ₹100 crore (€10.5 million) in India to expand its manufacturing capabilities and product portfolio.
'Currently, we can produce up to 20-inch tyres. With this investment, we aim to build capability for up to 23-inch sizes,' said Samir Gupta, MD,
Continental Tires India
, in conversation with ETAuto.
The fresh ₹100 crore investment will be rolled out in phases over the next 18 to 24 months. 'The funds will be used to install new machinery and tooling at the plant. We are focusing on increasing capacity and improving our ability to meet rising demand for larger tyre sizes,' Gupta added.
The move comes in line with the company's sharpening focus on ultra high performance (UHP) tyres. 'While the overall industry is growing modestly, this segment is expanding at over 20 per cent CAGR,' Gupta said.
The Hanover-headquartered firm currently holds a single-digit share of the Indian tyre market, which is dominated by players like MRF, Apollo Tyres, JK Tyre, and Ceat. 'We are the youngest player in the Indian tyre industry,' Gupta noted.
Continental also shared that all its tyres are now EV-compatible. However, the Modipuram plant, which has been serving only the domestic market, will continue to do so with no current plans for exports.
In April, ETAuto reported
how Ceat is also shifting to dual-compatible tyres for EVs and ICE cars
.
Earlier this month, the company announced it would discontinue its Truck and Bus Radial (TBR) tyre manufacturing operations as part of efforts to ensure the long-term viability of its India business. This includes shutting down the dedicated TBR production line at its Modipuram facility in Uttar Pradesh. The decision follows persistent challenges in the segment, primarily stemming from intense price sensitivity.
Demand rebound
The Indian tyre industry, which peaked in 2021 due to post-COVID demand, is poised for a better 2025 compared to 2024, according to Gupta. In 2024, the Indian tyre market was valued at $12.84 billion, and is projected to reach $29.16 billion in 2030, according to Wright Research.
A key reason for recent sluggish growth was delayed tyre replacements from 2020–21, as consumers typically stretch tyre use to four years. With that cycle now maturing, he expects a demand rebound, especially in the replacement market, by the second half of 2025. Citing strong GDP growth, captive consumption, and infrastructure push, he has projected the overall tyre market could potentially double revenues over the next 5-6 years.
Last year, Continental introduced its UltraContact NXT series in India. At this year's Bharat Mobility Global Expo, the company followed up with the launch of its Seal and Silent tyre range, aimed at enhancing safety and cabin comfort.
In August last year, the Faridabad-based company also inaugurated an IT hub in Bengaluru, which is an extension of its Asia Pacific IT operations based in Malaysia.
According to Gupta, the company is 'significantly' scaling up its headcount at the facility, which focuses on delivering IT solutions across manufacturing, R&D, and supply chain functions. The hub claims to support Continental's global operations, providing services to other markets beyond India.

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