Apollo Tyres announced its entry into two wheeler tyres segment earlier this year. So far, the Indian tyre maker has been focusing on car and truck radials in addition to concentrating on overseas brand acquisitions.
While international expansion is still in the priority list, Apollo has increased its attention towards the domestic market. The entry into two wheeler tyres segment is a part of its strategy called “Building Leadership” under which it aims to be the top tyre maker in India by 2020.
The current leader MRF has been having a great run in the two wheeler segment and Apollo is looking to make 1.2 million two wheeler tyres by 2018-19. Economic times reports that the company is planning to open its own two wheeler tyre manufacturing unit in Vadodara which is expected to become operational in 2018.
Satish Sharma, president-Asia Pacific, Middle East & Africa at Apollo, stated that while two wheeler tyres are critical for Apollo to close the gap between MRF, the company is not in the volumes game. Technology will be given precedence so more R&D work will be carried out to develop radial tyres across the segments.
In the car tyres space, Apollo’s market share in the after market space is slightly lower than MRF but it has a small lead over its rival when it comes to supplying to OEMs.