Well-known as an OTR/EM tyre manufacturer, Techking Tires is now seeking to sell a low rolling-resistance passenger car tyre range called Effiplus from January 2010. The Qingdao, China-based tyre manufacturer reports that it has already arranged a substantial off-take agreement with an as-yet unnamed Chinese tyremaker. Marketing manager Ben Zhang refused to reveal exact details of which manufacturer the company would be working with and how many tyres the company is planning to make, but Tyres & Accessories understands it will manufacture with one of China's largest producers. The plan is to sell the tyres direct to wholesalers/dealers in these respective markets, rather than distributing through importers.

While Zhang didn’t explicitly explain the thinking behind this part of the decision, it is likely to be related to the fact that, while the company’s partnerships with local distributors work well with high value items like OTR tyres, margins are slim on low value items such as passenger car tyres – particularly in such a competitive climate for the economy sector. What Zhang did say was that the company is considering offering the right wholesalers brand exclusivity, something that would enable the company and the wholesalers it partners with to share the marketing and business development investment.