Continental Restructures India Biz, Exits Commercial Vehicle Tyre Manufacturing

German automotive supplier Continental is mulling a major restructuring of its Indian operations, deciding to eliminate its commercial vehicle tyre manufacturing division while redirecting its focus on passenger vehicle segment, said a report by Times Of India.

Continental Closes Truck, Bus Radial Production

The company will cease operations of its Truck & Bus Radial (TBR) tyre manufacturing at the Modipuram plant in Meerut, Uttar Pradesh. This means a complete withdrawal from the commercial vehicle tyre sector in India as Continental redirects resources toward its Passenger Car and Light Truck (PLT) tyre operations.

Continental's decision comes after an evaluation of its Indian business portfolio, driven by mounting operational expenses and competitive pricing pressures within the TBR market segment. The company identified the PLT sector as offering superior prospects for sustainable expansion in the Indian market.

"The shift in strategy is about securing future-ready operations in India. This realignment allows us to better serve the growing demand for high-quality passenger and light truck tyres," the company was quoted as saying.

Continental has also outlined comprehensive assistance programmes for workforce members impacted by the operational changes. The support framework encompasses professional guidance services, internal job transfer opportunities, external placement assistance, and voluntary exit packages for eligible employees.

While discontinuing TBR operations, Continental maintains its commitment to the Indian market as a key growth region. The company continues PLT tyre production at its Modipuram manufacturing site and has recently established an information technology centre in Bengaluru to expand its technological capabilities.

The organisation's sales and distribution headquarters remain operational in Faridabad, Haryana, supporting continued market presence across India.