The distributor company aims to capture 30-40% share of the premium tire aftermarket in India. (Image source: apollotyres.com)

Apollo Tyres has brought European brand Vredestein to India for the first time in over a decade as India’s restrictions on tire imports have hit the business of major premium brands.

In 2009, Apollo Tyres entered the European market by acquiring the Dutch premium tire manufacturer. However, the brand is yet to be launched in India given the market dominance of European tire companies and low sales in the premium segment.

However, given the rapid growth of the luxury and performance car market in recent years, Apollo Tires APMEA President Satish Sharma and regulatory pressures due to import restrictions, feels that now is the best time to launch the brand in India.

The company also plans to launch high-quality products quickly and “immediately”. But for now, the market is right. Sharma told the Economic Times.

In June last year, the Indian government made tire imports a restricted item, allowing companies to import only non-local tires. Sharma said Apollo Tyres will produce tires locally, which will give the company an advantage.

The company aims to capture 30-40% of the premium tire aftermarket in India. It is expected to be difficult for the company to enter the factory tire segment as automakers like Mercedes-Benz and BMW have global partnerships in the tire segment. Sharma said the company is in talks with BMW and Jaguar Land Rover.

Sharma said entering a new segment may not lead to significant sales growth, but it will help the company test its dual-brand strategy, showcase its technology and lay the groundwork for future growth in the segment.

Sharma said this will help the company achieve its revenue target of $5 billion (Rs 3,750.1 crore) for fiscal 2026.2021 The company’s 2021. Consolidated revenue for the fiscal year was Rs 169.55 billion. The company expects about 15% of this to come from exports.

However, with rising raw material prices, Apollo Tyres and other tire makers are unable to cover all their costs and profits are under pressure.

On Friday, Bombay Stock Exchange (BSE) tire prices closed at Rs 221.2 after falling 2.17% on the Bombay Stock Exchange (BSE).