Continental Re-Introduces OTR Tires in Americas

United States: Continental Tire the Americas L.L.C. commences selling OTR tires in the American market marking their return in the OTR tire segment first time in ten years. The re-entry of Continental is in line with the expiration of 10-year “General-brand licensing agreement” which covered OTR and farm tires along with Titan International Inc.

The company plans to initially focus in the American market targeting major regions which include the United States, Canada, Mexico, Brazil along with Andean market for the earthmover segment in their commercial Speciality Tires (CST) business division. Going forward, the company is planning a bigger and more public launch of the new product ContiEarth radial OTR at MINExpo 2016 which is expected to take place in Las Vegas in September this year. Continental plans to introduce four tire sizes initially and later expand the portfolio by 2017.

“From a tire dealer’s perspective Continental is a great partner and has trouble-free products at fair prices that allow the dealer to make money and still offer a great value to the customer. We’re all very excited to see them bring OTR back into the mix.” said Dan Rice, president of Piedmont Truck Tires, in a statement provided by Continental

According to a recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020”, United States automobile market is the second largest automobile market in the world, with a motorization rate (including passenger cars and commercial vehicles) of more than 790 vehicles per 1,000 individuals, in 2014. Increasing disposable income due to strengthening US Dollar, falling oil and food prices, and rising standard of living, are resulting in an increase in production and sales of vehicles in the US. Steady growth in sales and production of automobiles, expanding automobile fleet, and favourable government policies, are anticipated to propel growth in the US tire market over the next five years. Passenger car tire segment accounted for the largest volume share of more than 80%, in the market in 2014, followed by light commercial vehicle, medium & heavy commercial vehicle, OTR and two-wheeler tire segments. Major tire players operating their tire manufacturing facilities in the US include Bridgestone, Goodyear, Continental, Pirelli, Michelin and Yokohama.

TechSci Research believes that, by re-entering the OTR tire business in the country will facilitate growth of company in the Speciality tire business in the entire American region which is further expected to support the increase of market share along with expansion of customer base of the company in the country’s tire market.