Continental Confirms Modi Tyres Partnership Reports
Continental AG’s Commercial Vehicle Tires division has confirmed reports that it has revived its collaboration with Modi tyres Company Private Ltd. (New Delhi). According to the company, Modi will initially produce around 1 million Continental-branded cross-ply truck tyres for the Indian market. As a result of the move, the company has secured access to the 12 million commercial vehicle tyre-strong Indian market, which has been projected to grow at around 7 per cent. Production already began at the start of June 2009.
The collaboration includes a technical cooperation agreement and a license agreement for Continental brand bias tyres. The Continental bias tyres will be distributed via a revived Modi sales network. “For us, this new agreement represents an extremely useful revival of our activities in India, a market, which we know will grow significantly over the coming years,” Continental project manager Christian Sass explained. Bias products still account for over 90 per cent of the Indian market.