Continental has announced a major operational realignment in India, confirming that it will cease Truck and Bus Radial (TBR) tyre production at its Modipuram plant in Meerut, Uttar Pradesh, by June 2025. The move reflects a strategic decision to exit the competitive commercial vehicle tyre market in favour of the more profitable passenger and light truck (PLT) tyre segment.
Continental cited unfavourable market conditions as the key driver behind its decision to exit the TBR segment. The commercial vehicle tyre market in India is marked by intense price competition and cost sensitivity, which have proven unsustainable for premium tyre brands aiming for long-term profitability.
Following a full business review, the company concluded that continuing TBR production in India was no longer economically viable.
As part of the strategic shift, Continental will invest ₹100 crore in its Modipuram facility to expand PLT tyre production. The expansion will focus on larger-inch and ultra-high-performance (UHP) tyres for SUVs, 4x4s and sport-oriented vehicles—segments showing rapid growth in India.
The company has confirmed plans to launch new products such as the CrossContact AT2, reflecting growing consumer demand for all-terrain and premium SUV tyres.
Continental has pledged structured support for employees affected by the TBR phase-out. This includes:
▪ Career counselling
▪ Guidance on internal and external job opportunities
▪ Voluntary retirement and separation options
While the company is withdrawing from TBR production, it reaffirmed its long-term commitment to the Indian market. India remains a strategic location within Continental’s broader Asia-Pacific growth plans.
The realignment supports Continental’s global objective of focusing on high-growth, value-generating segments and improving profitability and efficiency across its divisions.
Continental’s pivot away from TBR tyres in India reflects a wider trend in the tyre industry: premium manufacturers are concentrating on high-margin segments such as PLT and SUV tyres, where product differentiation and brand value play a stronger role. This also aligns with increased consumer demand for UHP tyres as vehicle ownership shifts toward larger, performance-oriented models. The move underscores the industry's broader focus on sustainable profitability over volume-driven growth, particularly in emerging markets.
Tagged with: Continental, TBR tyres, PLT tyres, SUV tyres, Modipuram plant, truck tyre production India, premium tyres India, tyre manufacturing investment, ultra-high-performance tyres, tyre industry India
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