Metro Tyres, Continental AG in tech collab for tubeless bike tyres

New Delhi, Jan 25 (UNI) Tyre manufacturer Metro Tyres has entered into a technical collaboration with Germany-based Continental AG to roll out tubeless motorcycle tyres for markets abroad.

These tyres will be manufactured primarily for overseas markets to cater to the demand of tubeless tyres among the global two-wheeler players like Honda, BMW and Yamaha.

''We are witnessing an equal demand for tubeless motorcycle tyres in Asian markets as in Europe. We are rolling out tubeless motorcycle tyres in partnership with Metro Tyres, for which all the required technical know how will be provided by Continental,'' Mr Jorg Essiger, Managing Director, Continental AG said in a statement.

Metro Tyres expects to achieve a turnover of Rs 400 crore by the end of this financial year 2006-07, out of which exports will contribute close to Rs 60 crore. Metro is targeting a turnover of Rs 750 crore in the next two years.

Mr Rummy Chhabra, Managing Director, Metro Tyres said, ''Keeping in mind the growth rate of Indian two-wheeler industry, we foresee a huge demand for tubeless motorcycle tyres in domestic market as well.'' Later, the tubeless motorcycle tyres will be rolled out in the domestic market, he said.

Metro Tyres will manufacture these tubeless tyres at its Ludhiana plant for which it has invested Rs 40 crore.

Besides, it is also setting up a new manufacturing facility for manufacturing of motorcycle, scooter and three wheeler tyres, at over Rs 50 crore in the Tax Free Zones in north India.

Metro tyres recently increased two-fold production of its Metro-Continental motorcycle tyres from 25,000- 50,000 pieces per month. It will further take it to one lakh tyres per month in the next eight-ten months.

Metro has sold over one million tyres in domestic as well as export markets till date and targets a 10 per cent market share in the replacement market abroad that is over 1.8 crore tyres.

UNI