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Apollo Tyres has said that the company's two-wheeler business will touch Rs 1,000 crore by next year from around Rs 650 crore right now, as the demand for aftermarkets grows, especially from the rural areas.
“We are not into OEMs where the margins are less…we are only in the aftermarket and that keeps our margins better, and very soon by end of next year two-wheelers will be a Rs 1,000 crore business from around Rs 650 crore now,” Satish Sharma, President, Asia Pacific, Middle East and Africa (APMEA), Apollo Tyres, told BusinessLine .
He said the company’s strategic focus is at the premium-end of the market, where margins are high. “We are now at almost six-lakh tyres a month as compared to zero three-four years back (for two-wheelers), and we have around 8 per cent of the market. The penetration in the rural areas is also good,” Sharma said.
The company on Saturday launched the premium European brand, Vredestein in India. The Vredestein brand of tyres will be manufactured at facilities in India, and will cater to the premium and luxury segment in passenger cars, while the two-wheeler tyres from the brand would cater to the growing superbiking segment in India.
While Vredestein Ultrac Vorti would cater to premium luxury sedans such as Mercedes, BMW, Audi, Land Rover and Volvo, Vredestein Ultrac would cater to premium hatchbacks and sedans such as Honda City, Maruti Suzuki Ciaz and Baleno, the company said.
The two-wheeler tyres from Vredestein, Centauro NS and ST, will cater to the entire sport touring and super sports range of motorcycles such as BMW, Ducati, Aprilia, Triumph, Kawasaki, Suzuki, Honda and Yamaha, it said.
Apollo Tyres had acquired the Netherlands-based company 12 years back and so far was catering to the export markets, especially in Europe and the US.
"It will definitely strengthen our offerings in the passenger vehicle and two-wheeler segments in India. The import restrictions on tyres imposed by the government recently, made a strong business case for us to bring the Vredestein brand to India for the high-end cars and motorcycles. Our R&D teams have customised these tyres to provide the best safety and driving experience for Indian conditions,” Sharma said.
Apollo Tyres will use its existing network of business partners, especially premium tier-I counters, to sell the Vredestein brand of tyres, he said, adding that going forward, the company may consider setting up specialist counters for the Vredestein brand.
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