Continental tyres targets premium growth in India on rising SUV and EV demand

Continental Tyres sees India as a key growth market, driven by rising demand for premium vehicles and larger wheel sizes. Nevin Aslan-Özkan, managing director of Continental Tyres India, highlighted the country’s growing importance due to improved infrastructure, higher disposable incomes, and a changing vehicle mix. The company recently launched the CrossContact AT2 tyre in India, reflecting its strategic focus on this market.

Key Highlights

• Continental Tyres sees India as a key market for premium and larger wheel tyres
• SUVs now make up about 60-65 percent of new passenger vehicle registrations in India
• Continental focuses on the replacement market with over 200 Conti Image Shops nationwide
• Company targets 40 percent renewable and recyclable materials in tyres by 2030
• EV trends and sustainability drive tyre technology and manufacturing investments

Premiumization and SUV Demand

India’s automotive market is undergoing significant change, led by a surge in SUVs and utility vehicles. These vehicles require larger, higher-value tyres, creating new opportunities for premium tyre makers. Aslan-Özkan estimates that SUVs now account for about 60-65% of new passenger vehicle registrations in India. While smaller cars still make up much of the total vehicle parc, the growing share of SUVs is expected to influence replacement tyre demand over time.

Aslan-Özkan noted a clear trend toward premiumisation, with consumers spending more on vehicles and valuing premium features. She stated, “There is a clear trend towards premiumisation, people spending more on cars, spending more money also on bigger cars, appreciating the value of a premium car.” This shift is expected to continue, increasing demand for premium tyres.

Indian consumers are also evaluating tyres based on safety, performance, and comfort, rather than just price. Customers who invest in premium vehicles are less willing to compromise on replacement parts and seek tyres that match their vehicles’ performance and safety standards. Continental expects this shift to expand the market for premium tyres in the coming years.

Aftermarket Focus and Expansion

Continental’s India strategy prioritises the replacement tyre market over original equipment supply. Aslan-Özkan confirmed, “Replacement will be our focus,” while noting the company will consider OEM opportunities that align with sustainable and profitable growth. To boost its aftermarket presence, Continental operates over 200 Conti Image Shops across India and plans further expansion. The company aims to ensure easy access to its premium products as demand rises.

Electric Vehicles and Sustainability

The shift towards electric vehicles (EVs) is also shaping tyre development. EVs are heavier than internal combustion vehicles and need tyres that handle higher loads, offer low rolling resistance, and reduce noise. Continental is adapting global technologies for the Indian market, using its experience with larger tyre sizes and EV applications.

Sustainability is another key focus. Continental aims to increase the share of renewable and recyclable materials in its tyres from 26% to 40% by 2030. The UltraContact NXT tyre, already available, contains up to 65% renewable and recyclable content. The company’s Modipuram facility in Uttar Pradesh supports these goals by using biomass-based energy and solar power. Recent investments in this plant have expanded its capabilities, and Continental believes it can meet near- and medium-term demand without needing a new manufacturing site.

Market Outlook

Continental expects India’s tyre market to be shaped by rising SUV sales, increasing premiumisation, and better infrastructure. Expanding highways, higher incomes, and supportive policies for new vehicle technologies are likely to boost demand for premium tyres. Aslan-Özkan emphasised the importance of sustainable, profitable growth that aligns with changing customer preferences.

CarBike 360 Says

As India’s automotive landscape rapidly shifts toward SUVs and electric vehicles, Continental’s premium-focused strategy positions it well to capitalize on evolving consumer preferences. By aligning its product portfolio with emerging trends and investing in advanced tyre technologies, the company is set to strengthen its foothold in a competitive market while catering to the demands of modern mobility.