Continental Sees Premium Tyre Growth Opportunity in India’s Expanding SUV Market

Continental has identified India as one of its most significant growth markets globally, supported by improving road infrastructure, increasing consumer spending power and a rapidly evolving vehicle population. Reinforcing the market’s strategic importance, the company recently introduced the CrossContact AT2 tyre range in the country. The move reflects Continental’s intent to bring global technologies to Indian customers while adapting products to local driving conditions and consumer expectations.

Speaking about the market opportunity, Nevin Aslan-Özkan, Managing Director of Continental Tyres India, highlighted that India has become a key focus area due to the growing premiumisation trend within the automotive sector. She stated that the company is committed to leveraging its international expertise and advanced technologies to address the evolving requirements of Indian motorists while ensuring product relevance for local conditions.

Rising SUV Demand Creating New Opportunities

One of the most significant changes reshaping the automotive landscape is the rapid expansion of the SUV and utility vehicle segment. According to Aslan-Özkan, SUVs now account for approximately 60–65% of newly registered passenger vehicles. Since these vehicles generally require larger and higher-value tyres, their growing popularity is creating fresh opportunities for premium tyre manufacturers looking to expand market share and strengthen profitability.

The executive noted that while the overall vehicle parc still contains a substantial number of smaller passenger cars, the increasing dominance of SUVs in new vehicle sales is expected to influence replacement demand over time. As more SUVs enter the market and age into the replacement cycle, demand for premium tyre products is likely to increase significantly across multiple customer segments.

Premiumisation Influencing Consumer Preferences

Continental believes the premiumisation trend extends well beyond vehicle purchases. Consumers are increasingly evaluating tyres based on safety, performance, ride comfort and overall value rather than focusing exclusively on upfront purchase costs. This behavioural shift is particularly evident among owners of premium vehicles who seek replacement products capable of delivering performance characteristics comparable to the original equipment fitted to their vehicles.

“There is a clear trend towards premiumisation, people spending more on cars, spending more money also on bigger cars, appreciating the value of a premium car,” said Aslan-Özkan. She added that once such a trend gains momentum, it typically continues over an extended period, creating sustained opportunities for premium product manufacturers.

Continental’s Replacement Market Strategy

Unlike several tyre manufacturers that place significant emphasis on original equipment supply contracts, Continental’s strategy in India remains centred on the replacement market. The company views aftermarket demand as its primary growth engine while remaining open to evaluating OEM opportunities that align with sustainable and profitable business objectives.

To strengthen market reach, Continental currently operates more than 200 Conti Image Shops across the country and plans to further expand its network. Improving accessibility remains a key priority, ensuring customers can easily locate and purchase Continental products through a growing channel partner ecosystem.

Continental India Growth Priorities

• Expand availability of premium tyres across India.
• Strengthen relationships with channel partners.
• Focus primarily on replacement market growth.
• Leverage global technology for local market needs.
• Support long-term profitability through sustainable expansion.

EV Readiness and Sustainability Objectives

The transition toward electric mobility is influencing tyre development priorities across the industry. Electric vehicles typically carry heavier battery packs, requiring tyres capable of supporting greater loads while delivering lower rolling resistance and reduced road noise. Continental believes its experience in global EV markets and larger tyre applications provides a strong foundation for addressing future requirements in India.

Beyond electrification, sustainability remains a major pillar of the company’s long-term strategy. Continental has established a global target of increasing the share of renewable and recyclable materials used in its tyres from approximately 26% today to 40% by 2030. The company has already launched products such as the UltraContact NXT, which incorporates up to 65% renewable and recyclable materials.

Continental Sustainability and Manufacturing Targets

The company’s Modipuram manufacturing facility in India continues to play a central role in supporting domestic operations. Recent investments have expanded plant capabilities, and management believes the facility can adequately support near- and medium-term growth requirements without an immediate need for an additional manufacturing site.

Long-Term Outlook for India’s Tyre Industry

Looking ahead, Continental expects three major forces to shape tyre demand in India: rising SUV adoption, increasing premiumisation and continued infrastructure development. Expanding highway networks, improving disposable incomes and supportive policy frameworks for emerging vehicle technologies are expected to strengthen demand for advanced and premium tyre solutions across the market.

For the company, future success will depend not only on achieving volume growth but also on ensuring that growth remains sustainable and profitable. By aligning its product portfolio with changing consumer preferences and future mobility trends, Continental aims to strengthen its position within India’s evolving tyre industry while capturing a larger share of the premium segment.

Frequently Asked Questions

Why is India becoming an important market for Continental?
India is becoming a strategic growth market for Continental due to improving infrastructure, rising disposable incomes and the rapid expansion of the SUV segment. These factors are increasing demand for premium vehicles and higher-value tyres. As consumers become more focused on safety, comfort and performance, the market for premium tyre products continues to expand. Continental sees significant long-term opportunities through its replacement market strategy, growing retail network and ability to introduce advanced global tyre technologies tailored to local requirements.

How is Continental preparing for future mobility trends in India?
Continental is preparing for future mobility trends by developing tyres suited for electric vehicles and investing in sustainability initiatives. The company is leveraging global expertise in EV tyre technology to address requirements such as higher load capacity, reduced rolling resistance and lower noise levels. It is also increasing the use of renewable and recyclable materials in tyre manufacturing while supporting cleaner production through biomass-based energy and solar power at its Modipuram facility. These initiatives position the company for long-term growth in an evolving automotive market.