Goodyear investing Rs50 crore to bolster retail network

22 Aug 2006


Mumbai: Goodyear India Ltd, a unit of Goodyear Tire & Rubber Co of the US, would invest Rs50 crore ($11 million) to strengthen its sales network in India.

Goodyear India proposes to set up 50 shop-in-shop branded stores by the end of 2006, and at least 250 more by end-2008, the company said.

The company manufactures tyres at its plants in Aurangabad in Maharashtra and Ballabgarh in Haryana.

The passenger radial tyre market in India is estimated to grow at 15 per cent a year and the market for tubeless radials is growing even faster, at about 30 per cent a year. "A number of car manufacturers have already switched to tubeless radials as original fitment," Antonio Capellini, managing director, Goodyear India Ltd., said in a statement.

"This will result in a strong demand for tubeless radials in the replacement market," he added.

The Automotive Tyre Manufacturers Association of India expects the industry to grow at more than 10 per cent in 2006-07. Indian tyre manufacturers made 66 million tyres in 2005-06, up 10 per cent, with replacements making up nearly 50 per cent of sales, according to the association.

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