Apollo Tyres on Monday announced its entry into the two-wheeler segment in India. Designed and developed at the company’s global R&D centre in Chennai, the Apollo Acti series for bikes and scooters, would cover nearly 85% of the replacement market for two-wheeler tyres in India.
With this Apollo Tyres has completed its offering across segments, including trucks, bus, passenger vehicles and now two wheelers.
It may be recalled that TVS Tyres, a leading two-wheeler tyre manufacturer, is making tyres for Michelin at its plant in Madurai. When contacted, the spokesperson said the company will not make tyres out of its plants at this point of time and has tied up with a south-based tyre maker to outsource the same. The official refused disclose the name of the contract manufacturer.
To a question, the company spokesperson further said that the company plans to outsource 120,000 tyres a month initially to be scaled up into a few lakhs going forward depend upon the demand for its tyres.
The company will start with the replacement market across the country through its existing dealerships. The market demand for two wheeler tyres is estimated to be around 6 million tyres per month, he added.
In a statement, Onkar S Kanwar, chairman, Apollo Tyres, said, “This is a milestone for us as our entry into the two-wheeler segment makes the company a full-range player. The presence in the two-wheeler segment will help the company cement its leadership position in India. The Apollo Acti series will provide the best value proposition to our customers along with an enjoyable driving experience.”
The two-wheeler category, which is growing at a CAGR of 8.5% in India, has a huge potential for tyre manufacturers. As per rough estimates, India currently has 120 million two-wheelers. This, in addition to the demand from the business partners for the company’s two-wheeler tyres, led to Apollo Tyres’ foray into the two-wheeler tyre segment, he added.
Neeraj Kanwar, vice-chairman & managing director, Apollo Tyres, said: “Our R&D and product team have spent over 2 years in developing the two-wheeler tyres, which are best suited for the diverse Indian road conditions.”