Apollo Tyres negotiating European original equipment deals

Apollo Tyres is reportedly in discussions with several vehicle manufacturers in Europe regarding the supply of original equipment tyres. Speaking with Indian publication The Financial Express, vice-chairman and managing director Neeraj Kanwar said that the list of companies the tyre makers is in talks with includes BMW, Volkswagen and General Motors.

Europe accounts for 30 per cent of Apollo Tyres’ total revenues, and according to Kanwar the company’s plant in Enschede, the Netherlands is currently operating at 95 per cent of its 6.8 million tyre a year capacity. Looking ahead, an initial capacity of 5.5 million passenger car tyres and 675,000 truck tyres a year is planned for the new plant Apollo is erecting in Hungary when it enters service in 2017.

Kanwar singled out Poland, Hungary and the Czech Republic as particular growth markets in Europe. Outside of the region, Apollo Tyres is considering setting up a manufacturing presence in South America. “We’re already present in Africa and western Asia and now we’re looking at Brazil where we will consider putting up a manufacturing unit in five to seven years,” Kanwar told The Financial Express