Apollo tires is preparing to expand its range of locally manufactured tires in the luxury vehicle sector with the Vredestein brand in the coming days. “We are launching our Dutch brand Vredestein and it will be launched in India very soon,” said Apollo Tires, President for Asia Pacific, Middle East and Africa, Apollo Tires, in an interview with Autocar India. He mentioned that the company will use the global brand to cover “the entire market segment of 17-24” tires.
- Apollo manufactures Vredestein tires for premium vehicles in India
- The ban on tire imports encouraged the move
- Vredestein will face Pirelli and Michelin
Vredestein is one of the oldest tire manufacturers in the world and was taken over by Apollo in 2009. The company introduced the European brand to the Indian market in 2013 by importing a range of tires for premium and luxury cars. This time, however, the tire major is looking for a bigger boost in this segment by producing Vredestein products on site.
Import restriction on the local production of high-end tires
Sharma explained the reasons for moving the company as follows: “What happened in India was that the automakers used to see no point in developing the supply chain in India to serve it, as 98 or 99 percent of our fleet is small cars consist of -1.5 percent of business with (luxury vehicles). They had global supply chains and only used them to get the limited quantities required in India. “
The playing field changed, however, when the Indian government cut imports by moving tires from an open general license (OGL) to the restricted category in June 2020. “We are on this whole journey of self-reliance or atmanirbharta,” said Sharma.
However, the strategy initially weighed heavily on the supply of premium tires as drivers of high-end cars are stranded. “Thanks to the regulation, there was a temporary interruption in the supply chain. But this vacuum is filled by everyone who produces domestically because they have the technology and the essentials. It’s no longer a niche, it’s a growing business, ”said the executive.
He commented on what to expect from Vredestein in India: “We can go up to 24 inches with low aspect ratio radials. We even have run-flat tire technology. “The Dutch brand will rival Michelin and Pirelli and premium cars from automakers such as Mercedes Benz, BMW and Audi in India.
“We will be launching our tires in the next few days,” added Sharma.
Regulations that bring Indian tires to the level of global standards
“The Indian tire industry is a very mature industry in which we manufacture equivalent benchmark products around the world,” said Sharma. With the country lagging behind the world on regulations such as emissions standards, tire manufacturers have had to face the challenge of greater differences between tires for the Indian and international markets.
“The technology is there and R&D investment has increased. The good thing that regulations like BS6 do is that they continue to adapt us to the global vehicle fleet, ”commented Sharma. This is expected to open more export opportunities for domestic players like Apollo.
Apollo’s plans for export
“We could become a good export hub from India, especially with China’s geopolitics. So we see that our exports are growing many times over, ”said the Apollo President.
In the future, the company will concentrate more on tires with low rolling resistance and on products for the SUV segment under the Amazer and Apterra sub-brands. “Not just India, but most of the world is moving towards SUVs, and this trend is universal. In Apterra, for example, we have found a portfolio that makes great sense not only for India, but also for South Africa, Australia and the large SUV markets such as the Middle East and the ASEAN region, ”said Sharma. He continued, “We are also looking at Europe and the US in a big way.”
Given the limited size of the luxury vehicle fleet in our market, the company may also consider exporting Vredestein tires made in India to other countries.
Vredestein helps Apollo to build brand awareness
“In the minds of consumers, beyond a certain point, the focus would shift to multinational brands rather than Indian brands. So there was a mind block, ”said Sharma.
The pursuit of brands is something that Apollo has put a lot of effort into building over the years, but there is still quite a bit to be done, especially in the premium categories. “The emerging brand journey has to be made by some Indian brands, Apollo in particular, given what we’ve been doing over the past few years,” he said. He added, “I wouldn’t be boastful enough to say that Apollo captured the hearts (of Indians) to be an emerging brand, but we are well positioned on that track.”
Sharma further noted that the Indian consumer in general is looking for a European brand for a luxury vehicle, which the company can serve with an international name like Vredestein. So this seems like a well thought out strategy, and Apollo expects to benefit from this move as well.
Although Vredestein’s products are initially intended for the aftermarket, the company is also working on supplying luxury car manufacturers. “The interest of the OEMs is now also directed towards the local supply chains for this segment. We are beginning to see this interest and hope to take advantage of this opportunity, ”he said.
See also:
Apollo launches Amazer XP tires with low rolling resistance
Apollo Tires introduces a motorcycle tire testing scheme
Bridgestone India is increasingly focusing on ultra-high performance tires