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.