The Hindu Business Line : Michelin Apollo in talks with vehicle makers for radial fitment

MICHELIN Apollo Tyres Pvt Ltd (MATL) is in talks with commercial vehicle manufacturers like Volvo to see whether the truck radials imported by the company can go in as original fitments into the commercial vehicles.

"These are largely in the nature of preliminary discussions. We are also in touch with other commercial vehicle manufacturers like Tata Motors and Ashok Leyland," Mr Onkar S. Kanwar, member of the board of MATL, told Business Line.

Apollo Tyres Ltd (ATL) will focus its energies on marketing the truck radials for the replacement market. "We would also work with the original equipment manufacturers."

The truck radials that are to be imported by MATL would be sold through the dealer network of ATL.

On whether imported Chinese tyres could emerge as a major threat for domestic Indian tyre companies, he said: "I don't think it is a major threat."

On the strengthening of natural rubber prices, Mr Onkar Kanwar said that another price hike in tyres seems inevitable.

"We had already undertaken three to four rounds of increases in fiscal 2003-04 to offset the increase in natural rubber prices," said Mr Neeraj Kanwar, COO, ATL.

"All the hikes in natural rubber prices last year have so far been passed to the consumer. The natural rubber prices have further gone up. Another hike in tyre prices may be necessary. We are looking at it."

On whether the Michelin group would increase its stake in ATL from the current level of 14.9 per cent, Mr Onkar Kanwar said: "There is an understanding that they can go up to 26 per cent."

But Mr Jean-Marc Francois, President, Asia-Pacific, Michelin Asia Pacific Pte Ltd, said: "As of today, we have no definite step in that direction."

More Stories on : Announcements | Tyres | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page