Apollo Tyres has rolled out its product range in the Nigerian market and the tyre maker has appointed the Stallion Group, a conglomerate that already boasts partnerships with several global vehicle manufacturers, as its representative within the country.
In its July 2012 report into India’s tyre industry, ICRA Research Services states that “changing revenue mix and softer rubber price” will “pay dividends.” The investment and credit rating agency observes that rubber prices have declined from their peak of around Rs 240 (£2.79) per kilogram at the start of the 2011-12 financial year (April 2011), easing to approximately Rs 195 per kilogram in November and then stabilising at between Rs 185 and Rs 200 per kilogram.
Several tyre makers have expressed their interest utilising natural rubber sourced from guayule and Russian dandelions, but Apollo Vredestein has announced it has actually produced tyres containing such materials. The company says the first tyres manufactured with European natural rubber rolled off its production belt this week.
Apollo Tyres has opened its first formal training centre for heavy and light commercial vehicle drivers. The centre is located in Ujjain city, a location within India the tyre maker describes as a busy transportation hub, and is being run in partnership with the non-profit organisation B-ABLE. Apollo says the centre will focus on two key areas: educating those wishing to make a career in the segment on all aspects of road and vehicle safety and maintenance, and promoting a holistic approach to health and wellbeing.
In addition to soon to be announced plans for a new factory in Central/Eastern Europe, Apollo Tyres has voiced interest in establishing a plant somewhere in Asia. On 11 May, the Hindu Business Line quoted Apollo vice-chairman and managing director Neeraj Kanwar as saying “we would like to set up a production base in Asean.”
Apollo Vredestein has announced its involvement in research into sources of natural rubber as a partner in the EU-PEARLS project. The objective of the project is to find a European alternative to Hevea brasiliensis-derived natural rubber. The tyre maker notes that replacing natural rubber with a synthetic variant is not always a practical consideration for tyre makers, and with demand for natural rubber continuing to rise, other sources are becoming increasingly attractive. The threat to rubber trees posed by diseases such as South American Leaf Blight provides additional incentive to find an alternative.
Apollo Vredestein has introduced its new ultra high performance summer tyre in Budapest, the Ultrac Vorti. The tyre, like the simultaneously launched Sportrac 5, has been designed by Italian company Giugiaro for a sporty, distinctive appearance. Vredestein says the Y-indexed tyre excels in terms of grip, handling and braking on both dry and wet surfaces. The Ultrac Vorti name was also created by Giugiaro, inspired by the powerful vortex air flow that is generated, for example, when a helicopter takes off. The name reflects the speeds and forces that the Ultrac Vorti can handle, rated for up to 300kmh, while the tread is reminiscent of the tips of helicopter blades.
Apollo Vredestein is in Budapest this week, as it launches two new UHP tyres under the Vredestein brand. The Sportrac 5 is the successor to the successful Sportrac 3, which won the ADAC 2011 summer tyre test. The Sportrac 5 is marketed on its quietness, stability and sportiness, offering excellent handling on both wet and dry surfaces. Its size range is designed to provide fitments on upper medium cars. The company notes that the name Sportrac 4 has not been used in order to prevent confusion with Vredestein’s all-season tyres.
Following Apollo Vredestein’s launch of the Apollo Aspire 4G at Geneva, the tyre manufacturer is “taking over” Hungarian capital Budapest for another major launch between 25 March and 2 April. Vredestein is introducing two new summer tyres – the Ultrac Vorti and the Sportrac 5 – in a grand event that will see major sites in the city, including the five-star Four Seasons Hotel and the Museum of Applied Arts, embellished with Vredestein branding. On Sunday 25 March, the brand announced its arrival with a convoy of 35 vehicles with Vredestein branding, while several mega-billboards in the city centre draw attention to its week-long residence.
The Goodwood Festival of Speed, billed as “world’s greatest celebration of car culture”, takes place this year between 29 June and 1 July. The event is sponsored by a roll call of the world’s most prominent vehicle manufacturers, and Michelin has also announced its sponsorship of the event. As well as maintaining a stand at the Festival of Speed, the tyre maker will also sponsor the Supercar Paddock and Supercar Run to highlight its links with manufacturers of some of the world’s fastest cars.
Less than three years ago, Apollo Tyres acquired Dutch tyre maker Vredestein and set about developing a company that draws upon both firms’ strengths. Now, at this week’s Geneva Motor Show, Apollo Vredestein showed the world what its Netherlands and India-based research and development departments are capable of jointly achieving; the very first tyre to come out of this international collaboration – the Apollo Aspire 4G – was given its official debut on 7 March.
A number of Indian tyre makers have shared their views on commercial vehicle radialisation with the Financial Chronicle. Estimates of current radialisation levels within this sector vary between 18 and 24 per cent, and all who spoke to the newspaper believe the radial to cross-ply ratio will change dramatically in the coming years.
At next week’s Auto Salon in Geneva, Apollo Tyres is unveiling its latest UHP summer passenger car tyre. Known as the Aspire 4G, the new range will be available in W and Y speed ratings. Further details will be available following the tyre’s official launch on 7 March.
Net sales at Apollo Tyres increased 36 per cent year-on-year to Rs 32.28 billion (£404.75 million) in the third quarter of the 2011-12 financial year. In the three month period, which ended 31 December 2011, the tyre maker also achieved an operating profit of Rs 3.28 billion (£41.13 million), a rise of 18 per cent. Net profit, at Rs 980 million (£12.29 million), was 18.3 per cent down on the corresponding quarter a year earlier. Breaking net sales down by geographic region, the Indian tyre maker’s domestic operation generated revenue of Rs 20.93 billion (£262.43 million) during the quarter, up 46.2 per cent year-on-year, while European revenue rose 26 per cent to Rs 8.20 billion (£102.78 million) and South Africa revenue grew 28 per cent to Rs 3.83 billion (£48.04 million).
This week the millionth truck-bus radial came off the production line at Apollo Tyres’ Chennai manufacturing facility. The TBR unit entered service in April 2010 with an initial production of 250 tyres a day; following a series of gradual ramp-ups a total of 4,000 tyres are now produced there each day. TBR tyres now account for 19 per cent of Apollo’s total commercial vehicle tyre production, a figure that mirrors India’s overall 20 per cent commercial sector radialisation level.
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