Apollo looks to add 10% production capacity for passenger car tires

Gurugram, India – Apollo Tyres Ltd expects to increase its capex for 2025, with a particular focus on increasing consumer tire capacity, according to finance chief Gaurav Kumar.

“We are extremely tight on passenger car tire capacity… and have initiated small capex” projects, Kumar reported on a 14 Feb earnings call.

Offering a 'ballpark' figure of INR12-13 billion for capex, Kumar said about INR750 million was earmarked for maintenance and another INR800 million for capacity expansion in India and Europe.

Investments will go towards adding 7-8% production capacity for passenger car tires in India and “slightly more” in Europe, particuarly Hungary, said Kumar.

Overall, continued the Apollo executive, the consumer tire capacity addition will be "just about 10% or a little less."

According to the finance chief, the company’s truck & bus tire utilisation rates stand around 80%, with “sufficient headroom.”

For passenger car tires, he said, utilisation rates are at “high 80%” levels in India and in the 90% region in Europe, he explained.

Also on the call, managing director and vice chairman Neeraj Kanwar said Apollo was 'clearly looking at the US as our next growth market.'

There, he said, the tire maker aims to see "slow and steady" growth, with the Vredestein brand doing well in the market. 

"Apollo TBR has also started growing. So, the US is a clear growth market," he added.

In addition, the Apollo leader said that the next market the company is looking at is the Middle East, specifically in Saudi Arabia.

India and Europe, summarised Kanwar, continue to be "our domestic markets" with the US and the Middle East being "two key [growth areas] that we are looking at."