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Continental to infuse Rs 100 cr in India to boost passenger vehicle biz

The investment will support the development of tyres tailored to Indian market requirements, focusing on performance and quality standards

Shares of tyre companies rallied for a second consecutive day on Tuesday, with most of the big players registering cumulative gains of up to 6 per cent over the past two days.

Currently, Continental manufactures passenger and light truck tyres at its Modipuram facility in Meerut, Uttar Pradesh. Representative Picture

Himanshu Thakur New Delhi

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Hanover-based tyre manufacturer Continental has announced plans to invest approximately Rs 100 crore in India to enhance production capacity and broaden its product portfolio for passenger vehicles and light trucks.
 
According to a company statement, the investment will support the development of tyres tailored specifically to Indian driving conditions, with a strong emphasis on performance and quality standards.
 
“With our ‘in the market, for the market’ approach, we're aligning our portfolio to reflect the evolving lifestyle needs of Indian drivers—from daily commutes and long-distance travel to changing expectations around comfort, safety, and convenience,” said Samir Gupta, Managing Director, Continental Tires India.
 

Manufacturing upgrades and product expansion

The investment, equivalent to around 10.5 million euros, will be directed towards upgrading Continental’s manufacturing facilities in India and expanding its tyre range for passenger cars and light trucks. 
 
The company anticipates growing demand for larger-inch and ultra high performance tyres across SUVs, 4x4s, and similar vehicle categories. In line with this, Continental also plans to introduce the CrossContact AT2 all-terrain tyre in India later this year.
 
Currently, Continental manufactures passenger and light truck tyres at its Modipuram facility in Meerut, Uttar Pradesh.

Strategic shift to premium PLT segment

Earlier this month, Continental announced a strategic shift in its product focus in India. The company will now concentrate exclusively on the Passenger Car and Light Truck tyre (PLT) segment for future growth.
 
As part of this transition, Continental will exit the Truck and Bus Radial tyre (TBR) segment. This includes ceasing operations of the dedicated TBR production line at the Modipuram facility.
 
“The realignment is aimed at ensuring the long-term viability of Continental Tires’ operations in India. In response to changing local customer demand, Continental will focus on further developing its local product portfolio and manufacturing footprint to align with future growth opportunities in the PLT tyre premium segment,” the company said in an earlier statement.
 
(With inputs from PTI)
 

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First Published: Jun 09 2025 | 5:09 PM IST

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