Continental And Metro In Co-Branding Agreement
Continental and Indian company Metro Tyres are to manufacture motorcycle and scooter tyres under the joint brand name Continental-Metro for the Indian market. Initially, Metro will produce 100,000 tyres and tubes a month for 100cc and 110cc motorcycles, with tyres for 150cc and 180cc bikes coming on stream later. Half of the production offtake will be marketed in Europe and North America – these tyres will carry the Continental name only. Production is set to begin in May and the initial investment is 30 crore Rupees, or around US$ 6.3 million. The arrangement between the com panies will be purely a technology deal for the first three years, after which the companies may explore a possible equity partnership.