Continental Tyres India expands local production for premium SUV segment

Continental Tyres India is increasing its focus on the passenger vehicle replacement tyre market. The company will begin local production of tyres up to 23 inches at its Modipuram plant in Uttar Pradesh. This move targets India's growing premium SUV and crossover segment. Continental is investing €10.5 million to upgrade its manufacturing capabilities.

The investment, announced last year, will expand the plant’s range from 13–20-inch tyres to 23-inch tyres. The project is expected to finish by mid-next year. This will allow Continental to produce larger premium tyres locally, reducing reliance on imports and meeting domestic demand faster.

Key Highlights

• Continental invests €10.5 million to expand the Modipuram plant for 23-inch tyre production.
• India's replacement passenger car radial tyre market is estimated at 32–33 million units annually.
• Tyres above 17 inches are expected to see double-digit growth over the next five years.
• Continental launches the CrossContact A/T² all-terrain tyre for premium SUVs in India.
• Modipuram plant adopts biomass and solar power for sustainability.

Market Trends and Strategic Focus

Nevin Aslan-Özkan, Managing Director of Continental Tyres India, noted a major shift in India’s vehicle market. Nearly 60% of new passenger vehicles sold in India are now SUVs, crossovers, or 4x4s. This trend is driving demand for larger, premium tyres. Continental plans to use its German engineering expertise to develop products suited to Indian roads and customer needs. The investment includes specialized machinery for larger-diameter tyres and will boost local production of premium products that are currently imported or unavailable in India.

Continental will continue to focus solely on the passenger car radial (PCR) replacement tyre market in India. The company estimates the replacement PCR market at 32–33 million tyres annually, with an expected growth rate of about 6% in the coming years.

The premium segment is likely to grow faster than the overall market. Aslan-Özkan stated that tyres above 17 inches should see double-digit growth over the next five years. The 18-inch-and-above category could grow by nearly 20%, driven by more SUV sales and premiumization in the passenger vehicle sector.

Manufacturing and Retail Expansion

Continental recently stopped its truck and bus radial (TBR) business in India to focus on passenger car and light truck tyres. This strategic shift allows the company to concentrate resources on high-value premium products and improve competitiveness in the passenger vehicle segment. While Continental does not plan to enter the OEM tyre supply market in India immediately, it continues to assess the opportunity as part of its long-term strategy.

The company believes Indian consumers are prioritizing safety, comfort, and performance when buying replacement tyres. Continental aims to stand out through advanced tyre technology rather than competing on volume. The company recently launched the CrossContact A/T² all-terrain tyre for premium SUVs, making India one of the first Asia-Pacific markets to receive this product. The tyre is produced at the Modipuram facility.

Continental operates over 200 Continental Image Shops across India and plans to expand its retail presence in cities with rising demand for premium vehicles. The company’s expansion strategy focuses on building long-term partnerships with retailers who understand the premium positioning of Continental products. Alongside physical growth, Continental is investing in digital tools such as online warranty claims, digital inventory tracking, tyre traceability, and AI-based inspection tools to speed up customer complaint resolution.

Sustainability Initiatives

Continental highlighted its sustainability efforts at the Modipuram plant. The facility has eliminated coal use by switching to biomass-based energy and added solar power generation. Globally, Continental is working to improve manufacturing efficiency, increase recycled material use, reduce resource consumption, and comply with India’s Extended Producer Responsibility (EPR) framework for tyre recycling.

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CarBike 360 Says

Continental’s move to expand local production signals a strategic push to align with India’s rapidly evolving premium SUV market. By strengthening domestic capabilities, the company is set to improve supply agility, reduce dependency on imports, and deliver high-performance tyre solutions tailored to Indian conditions, reinforcing its competitive position in a fast-growing segment.