Apollo plans expansion by entering in Two Wheeler Tire Segment.

India: The news came from Apollo Tires Ltd Gurgaon headquarters where the company declared the launch of their first two wheeler tires in the Indian two-wheeler tire market. The company is currently sourcing the tires from another domestic tire maker and expects a monthly demand of 120,000 tires initially which is expected to grow by four times in the coming two years.

According to Apollo Chairman, Mr. Onkar Kanwar, the launch was a “milestone for Apollo Tires as the entry into the two-wheeler segment makes the company a full-range player. The presence in the two-wheeler segment will help the company cement its leadership position in India.”

Apollo plans to launch the tires in three ranges which include, motorcycle rear tires which would come in three patterns, the actiGRIP R1 and R2 in block pattern for on-off road driving and actiZIP R3 in directional pattern for driving on highways, followed by motorcycle front tires having three types namely actiSTEER F1 in straight rib pattern and actiZIP F2 and F3 in directional patterns, and finally tires for scooters which is actiZIP S1 and S2, for both front and rear applications.

According to a recent report published by TechSci Research, “India Tyre Market Forecast & Opportunities, 2020’’, India is one of the largest automobile markets in the world and third largest in Asia, which makes the country a leading consumer of tires. India is the seventh largest vehicle producer in the world, with an annual production of more than 20 million vehicles in 2014 creating huge opportunities for tire companies operating in the country. Cumulative production of passenger cars, medium & heavy commercial vehicles, two-wheelers, off-the-road vehicles, light commercial vehicles and three-wheelers in the country grew at a CAGR of over 7% during 2010-2014, which has been significantly boosting demand for tires over the last five years. Two-wheeler is the most dominating segment in India automobile market and accounts for majority of share in the country’s automobile fleet. As a result, India tire market is dominated by two-wheeler tire segment, in terms of volume sales.

As per TechSci Research, it is estimated that there are about 120 million two wheelers operating in the country which is significantly driving the demand for two-wheeler tires in the replacement market of the country. The entry of Apollo in this tire segment would help company to increase its penetration further into India tire market.