Kenda – ‘Essen is About the World’

When it came to expanding into Europe the UK market was the first stop on Kenda’s list. Now expansion is reportedly going well as the company spreads out into the rest of Europe. “We want to be careful to be successful from the very beginning,” said Kenda Rubber Industrial Co Ltd president, talking to Tyres & Accessories. And the German Reifen exhibition is a good place to do it – “The Essen show is about the world and not simply Germany,” Hongder Chang adds. Having just launched its new Kaiser high performance tyre, Kenda also introduced a new all-season and snow tyres for sale in “the northern territories.”

Kenda tyres are distributed by Unity and R H Claydon in the UK. In addition the company’s products are sold by leading European online retailer, Delticom. Kenda reports that it is also in talks with other similar distribution channels. “Online ordering will be a significant portion of the market,” Hongder Chang predicted. Kenda has a good network of distributors and a successful business model, proven particularly well in markets like Japan and the USA, Chang explains. However, the discussion on whether or not to open a European office remains open-ended.

Kenda Rubber Industrial currently produces 5 million passenger car radials each year, plus another 2 million bicycle and motorbike tyres. Right now 70 per cent of what the company produces is destined for exports, which are fairly evenly distributed between USA and Europe. Having said that, the US market is number one for sales from Kenda’s perspective.

In the third quarter of this year the company will gain additional capacity from the completion of its Chinese joint venture factory that it is working on with Cooper Tire. When it is running at maximum output, the two companies’ JV production facility will produce between 10 and 12 million light truck and passenger car tyres.

This is the company’s third time at the Essen show and visitor interest is said to have grown dramatically. “We have heard many complements about our marketing strategy and products. when you consider we only began producing passenger car radials four years ago you can see we have completed a major achievement.”

Kenda representatives describe the company as already being a major player in motorcycle, bike and industrial tyres.