Apollo Tyres to Commission its First Overseas Greenfield Facility

Indian tire manufacturer’s new facility to have enhance its production capacity of around 6.2 million tires

Hungary: The Indian tire manufacturer commissioned its new manufacturing facility near Budapest in Hungary. To set up the unit, the company has invested around USD502 million. The new facility is anticipated to manufacture 5.5 million light truck and passenger car tires, and around 675,000 units of commercial vehicle tires after the completion of its first phase of production.

Moreover, the new facility is anticipated to complement the company’s existing facility in Netherlands and would produce both Vredestein & Apollo brand tires for European market.

In addition to that, the company’s chairman, Onkar S Kanwar said, “facility will help us further increase our presence and market share in Europe. From being a replacement market focused company in Europe, we would soon be starting supplies of our tyres to all leading original equipment manufacturers in Europe.”

As per TechSci Research, with the introduction of company’s new facility in the country, the company would be able to cater the growing demand for tires across the country specially in passenger car, light truck and commercial vehicle segments. Furthermore, with the introduction of the new tire plant by the Indian company. the competition among the OEM’s is also anticipated to increase in next few years.

According to a recent report published by TechSci Research, “Hungary Tire Market Forecast & Opportunities, 2021’’, Hungary tire market is projected to grow at a CAGR of over 9% during 2016-2021, on account of growing demand for passenger car and commercial vehicle tires in the country. A major in the demand for tires in the country emanates from Central Hungary. Hungary tire market is dominated by passenger car segment, which accounts for more than four-fifths of the total tire demand in the country. Moreover, few of the leading global tire companies operating in Hungary include Goodyear, Bridgestone, Pirelli, Michelin, Continental, etc.