 "New acquisition sets the wheel in motion for JK Tyre")
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Apollo Tyres, the country’s second largest company in the sector by revenue, has ventured into the two-wheeler space to become a full-range maker. Until now the company was manufacturing truck, bus and car tyres.
Unveiling the new products, vice-chairman and managing director Neeraj Kanwar said, “We are looking to cater to at least 85 per cent of the two- wheeler market with our current product range. In the second phase, we will come up with radial tyres for bikes with higher engine capacity.”
Unveiling the new products, vice-chairman and managing director Neeraj Kanwar said, “We are looking to cater to at least 85 per cent of the two- wheeler market with our current product range. In the second phase, we will come up with radial tyres for bikes with higher engine capacity.”
Read more from our special coverage on "APOLLO TYRES"
The company has outsourced manufacturing and is looking to reach sales of 500,000 tyres a month in two years. It will look at setting up a dedicated manufacturing facility after crossing the monthly milestone of 500,000 tyres. At 500,000 tyres a month, the company would have a tenth of the market share.
Acknowledging Apollo is a late entrant, Kanwar said the company was not scared of competition. “I am very confident that given our leadership in other categories, we will do well here”, he said. Apollo will need to compete against entrenched two-wheeler tyre makers like MRF, Ceat and TVS Srichakra.
The two wheeler tyre segment is growing at a compounded annual growth rate of 8.5 per cent. India is estimated to have 120 million two wheeler population.
The two wheeler tyres have been designed and developed by the company's R&D Centre in Chennai.
The company has launched tyres for motorcycles and the fast growing scooter segment. The range of two wheeler tyres from the company will be available from today at Apollo's authorised sales channel across the country.
