The Hindu Business Line : Goodyear India plans Rs 80-cr expansion

With this, the daily production will go up to 10,000 car tyres from the current level of 4,500. Mr Mahesh Krishnan, Director - Sales and Marketing, Goodyear India, said that the expansion would be completed by 2008.

Value-added services

The Aurangabad facility makes passenger car tyres for the local market. It is the sole tyre company to be the OE (original equipment) supplier to all the car manufacturers in the country.

It has now decided to focus on the passenger car market with value-added services and diverse product range, therefore, the focus and expansion plans for its Aurangabad facility.

Goodyear has another facility at Ballabgarh, Haryana where tractor and other tyres are made for various segments in the auto sector. Apparently, Goodyear India is the largest supplier of tractor tyres in the country, said Mr Krishnan.

`Excellence' range

In focus with their diverse product offering, the company is about to introduce a new brand, "Excellence" range of car radials in the country.

It will be Goodyear's first tyre range that will have low profile tyres available in the domestic market.

These tyres are for the after replacement market, whereby, customers opt for them due to their upsize range. Technically speaking, it enhances road grip and handling characteristics of the car.

Usually, the tyres are used amidst entry-level luxury cars, SUVs (sports utility vehicle) and in sports cars too.

The passenger radial tyre market growth is likely to be at 15 per cent per annum in the coming years.

Of this, tubeless radials are growing at a rate of 30 per cent. Keeping in line with international trends, many leading car manufacturers in India have already switched to tubeless radials as original equipment.

Besides the infusion on capacity expansion, the company recently announced their investment of Rs 50 crore to set up 300 shop-in-shop exclusive retail outlets in India.

The company will set up 50 shop-in-shop format branded stores by the end of 2006 and 250 more by end of 2008. These showrooms will also offer value-added products and services, car-care products including car perfumes, car wash, tyre shine etc.