Continental Tires, the tyre division of German automotive giant Continental, is optimistic about its growth potential in India, driven by increasing demand for safer, high-performance tyres for premium and luxury vehicles. The company sees significant opportunities in the Indian aftermarket as road infrastructure improves and the market for premium cars expands.
Samir Gupta, Managing Director of Continental Tires India and Head of the Central Asia Region for BA Tyres APAC, shared his insights in a recent interview with Autocar Professional. He highlighted that India’s economic growth, propelled by sectors such as construction, manufacturing, and mining, is playing a major role in boosting demand for tyres. The country’s GDP is currently growing at a rate of 8 percent.
Gupta explained that India’s focus on infrastructure development is contributing to both commercial and personal mobility, which in turn is benefiting the tyre industry. He emphasized that rising sales of premium cars and the growing popularity of SUVs are leading to higher driving speeds, which increases the need for safer tyres.
Gupta pointed out that even the safest vehicles rely heavily on tyre performance. He noted that the rise of electric vehicles (EVs) has led to increased demand for robust, quiet tyres that maintain high performance, particularly in braking and wet grip conditions. He explained that Continental had foreseen these trends and has been developing products to meet these evolving needs.
Focus on Safety, Durability, and Efficiency
For commercial vehicles, Gupta mentioned that the primary demand is for tyres that offer higher mileage. He revealed that Continental has launched next-generation tyres designed for long-distance travel with ultra-mileage capabilities, without compromising safety. These intelligent tyres provide up to a 3 percent reduction in fuel consumption and a 20 percent increase in mileage. Additionally, they are equipped with technology that alerts drivers if the tyre is losing pressure, helping to prevent potential safety issues.
Gupta underlined that the company’s core priorities—whether for personal or commercial vehicles—are safety, durability, long life, and efficiency.
Growth in Larger Tyre Segments
Continental Tires currently estimates that tyres sized 17 inches and above have a 12-15 percent market share in the Indian replacement market. However, Gupta expects this figure to more than double within the next 5-7 years, spurred by the growing popularity of SUVs. He projected that penetration could reach 30 percent, with SUV sales growing at a compound annual growth rate of 15-17 percent.
Gupta also noted that over 50 percent of new car sales in India are SUVs, which has led to a higher demand for larger tyres from original equipment manufacturers (OEMs). He revealed that 17-inch-and-above tyres already account for over 25 percent of Continental’s total sales in India.
While Continental already produces 19- and 20-inch tyres locally with its Sports Contact 5 range, which will soon be replaced by the PC6 series, the company is now considering the possibility of manufacturing 21-inch-and-above tyres in India to meet growing demand.
Continental Tires continues to position itself as a leader in the Indian market, focusing on innovation and responding to evolving consumer needs as the nation’s automotive sector shifts towards premiumization and electric vehicles.