Goodyear invests in India

New Delhi, India -- The Goodyear Tire & Rubber Company has announced that it will invest US$ 18 million (Rs. 80 crore) in its Indian operations in 2006, as part of its second phase of capacity expansion in the country. The investment will result in increased production capacity for tubeless radials in the passenger tyre segment. Part of this investment will be for technology upgrades.

According to Pierre Cohade, Goodyear's president for Asia Pacific region, who is currently on a visit to India, India is today a strategic market for Goodyear. We not only see a robust domestic market here, but also a potential cost competitive high quality manufacturing sourcing base for our global needs. Goodyear has a long-term interest in the Indian market, and is committed to expanding its operations here. Our second phase of expansion will be followed by a third phase of expansion,”

Antonio Capellini, managing director, Goodyear India said, The passenger radial tyre market is growing at 20 percent annually, while the passenger tubeless radial market is growing much faster at 35 percent. This is where Goodyear has a headstart, being the first company to have introduced passenger tubeless radials in the country. Going forward our focus is on next generation high technology passenger car products.”

Goodyear India said it is aimong for about 12 percent turnover growth in 2005,. it reported combined turnover of Rs. 820 crore in 2004. The company foresees a rapid increase in demand for tubeless radials in the passenger car segment, with automobile manufacturers coming out with high-end models and demanding higher technology tyres. The passenger tyre market has been the fastest to adopt radial technology and today radials account for 90 percent of this segment.