Continental Gears Up For Bigger Tyres As India's SUV Boom Reshapes Strategy

Continental Tires is preparing to widen its India product lineup to include tyres of up to 23 inches, as the German major recalibrates its strategy around the country's rapidly changing car landscape, and a surge in demand for SUVs, crossovers, and premium vehicles.

The company, which currently manufactures tyres ranging from 13 to 20 inches at its Modipuram plant in Uttar Pradesh, said the expansion reflects where the market is heading rather than where it currently stands. Speaking exclusively with ACKO Drive, Continental Tires India Managing Director Nevin Aslan-Özkan said the shift in consumer preferences is unmistakable.

"What we're seeing here in the Indian market is very fascinating. About 60 plus percentage points of the cars hitting the road are SUVs, crossovers and 4x4," Nevin said.

The move comes on the heels of Continental exiting the truck and bus radial (TBR) segment in India last year, when it shut down that production line at Modipuram. The company has chosen instead to concentrate entirely on the passenger and light-truck (PLT) segment, a decision Nevin defends as a matter of focus rather than retreat.

"I'd like to say, you need to focus to win," she said, adding that the economics of running a value-driven commercial tyre business no longer align with Continental's premium positioning.

India's role in Continental's global playbook has grown steadily. Earlier this year, the company chose India — ahead of Europe and North America — as the launch market for its CrossContact A/T2 tyre, unveiled at a track event in Goa. According to Nevin, the decision was rooted in India's unique on-road and off-road driving mix, a pattern less pronounced in mature Western markets.

"We're not talking 100 per cent off-road, we're not talking 100 per cent on-road. So this nice mix that we see in India... is very exciting," she said.

The planned move into 23-inch tyres is aimed squarely at the fast-growing premium and luxury vehicle segment, which Continental expects to grow by around 20 per cent over the next five years, even as it remains a small slice of overall volumes. The company is also weighing further capacity enhancements over the next 18 to 24 months, on top of the capability upgrades already under way.

Continental's India ambitions are not confined to manufacturing. With over 200 branded stores and a technology hub in Bengaluru, the company is also expanding its dealer network in tandem with its product portfolio, calling the two "key pillars of growth going forward".

The company has also pointed to sustainability commitments at the Modipuram plant, which it says now runs entirely without coal, relying instead on biomass and renewable energy including on-site solar power.

With Indian consumers increasingly gravitating towards larger, more capable vehicles, Continental's wager on 23-inch tyre capacity signals confidence that the country's premiumisation trend still has considerable room to run.