Apollo Tyres enters Europe, eyes $2-bn turnover by 2012
A year after it acquired Dutch tyre maker Vredestein, domestic tyre major Apollo Tyres launched its own range of products in Europe.autos Updated: Jun 01, 2010 20:56 IST
A year after it acquired Dutch tyre maker Vredestein, domestic tyre major Apollo Tyres on Tuesday launched its own range of products in Europe. The company, which aims to be be among the world’s top 10 tyre makers, is only the third Indian major automotive company after Tata Motors and Reva Electric to enter Europe.
Apollo will sell Vredestein's products in the higher range. The recent weakness in the euro is adding to its competitivenes, company officials said. A small portion of the Vredstein products will be made in Europe.
Apollo expects to sell 400,000 tyres in Europe by March 2011 — a market where the annual industry size is over 300 million. It hopes to expand aggressively over the next five years and hit a consolidated turnover of $5 billion. It aims for $2 billion by 2010-end, three months ahead of target.
“A major distinguisher would be the value we will be delivering to our customers at affordable prices,” said Onkar S. Kanwar, CEO, Apollo Tyres.
The company plans to exploiting India’s low production costs, add value to it with Vredestein technology, and then ship it to Europe to enjoy a cost advantage over European tyre firms. Apollo’s tyres would be manufactured in Baroda and shipped to the UK, Germany and Holland. After March 2011, it will cover the whole of Europe.
(The writer's travel and stay to Europe was provided by Apollo Tyres)
First Published: Jun 01, 2010 20:54 IST