Apollo Tyres has lined up major plans to target the commercial vehicles radial segment. Its upcoming Chennai plant, considered to be the largest across the world, will help the company strengthen its leadership position in the commercial vehicles tyres segment.
Unlike global markets, radial tyres command a low share in the overall tyre market. Compared with the global average of 65%, the radial CV segment is estimated at around 10% (5% two years back).
Demand could touch 30% in three years, compared with 10% now, company sources said.
Satish Sharma, chief, India operations, Apollo Tyres, said: ?Once completed Chennai will be our largest manufacturing unit globally. The plant is still under construction, once the first phase is completed it will produce around 16,000 passenger car tyres and 6,000 truck-bus radial tyres a day.?
?Entry into CV radial segment in India will help Apollo offer complete solution to its customers and enable it to strengthen its market leadership position further,? sources maintained.
The Chennai facility will enable the firm meet the global demand for CV radial tyres, particularly in the European markets, where Apollo sells through its Netherland subsidiary, Apollo Vredestein.
?In the CV segment, Apollo has maintained market share and leadership position in the original truck/bus segment. Our goal is to further strengthen leadership through the radialisation of CV segment in India,? sources added.
The plant received the necessary certifications and clearances for original equipment supply in four months after commencing production. The company would invest around Rs 2,000 crore in phases. The Chennai facility will manufacture 6,000 truck-bus radials a day.