Apollo Tyres Targeting North America Market

After successfully establishing its production facilities in Europe, Apollo Tyres, one of India’s largest tyre maker has now decided to look towards the United States, which is the world’s largest automotive market. The company wishes to have its new production site in the U.S. The Southeast Asia is also on Apollo’s radar, but shipping products from India is still a much better economical option for the company instead of building a production plant in any ASEAN nation.

The company’s existing facility in the Netherlands will further strengthen the Apollo’s footprint in Europe. The unit is also Apollo’s first greenfield facility outside India. Mr. Onkar Kanwar, the Vice Chairman and Managing Director of Apollo tyres, said that even though in Europe the competition was tough compared to the Chinese products, but they have been able to carve out 3% share there and they are looking to replicate the same feat in the U.S too where they are selling a very small amount of products, and will soon undertake 2 years of R&D program. The company believes that if they prove their technological worth then the U.S dealers and customers will begin to see the value of Apollo Tyres. Mr Kanwar has reiterated that his top priority in terms of expansion was to create a market base in North America.

Apollo Tyres exports to more than 100 countries worldwide from its facilities in India and Europe. Recently, it became the first major Indian tyre manufacturer to sell its products in the European market. It is also the first Indian company to make an international acquisition in 2006 when it acquired the Dunlop Tyre International. Also to its credit, Apollo became the first Indian company to own a manufacturing plant in Europe when it acquired the Vredestein facility in the Netherlands and finally acquired Reifencom, one of the largest tyre distributors in Germany.

Mr. Kanwar said, that from being a replacement tyre based market for Apollo, they soon will be starting to supply their tyres to the leading Original Equipment Manufacturers in Europe, including Volkswagen and Mercedes Benz. He also added that Apollo Tyres is currently looking to export tyres from the European plants to niche markets in Asia and to build its brand recognition and for this, they have entered into a partnership with the famous English football club Manchester United.