ESSEN, Germany -- India's Apollo Tyres Ltd. aims to win new business with BMW AG and Volkswagen AG now that it has launched its brand in Europe.
India's leading tire maker announced its European debut Tuesday here at the Reifen tire show.
Apollo Managing Director Neeraj Kanwar said that the company is in talks to supply BMW with its tires in Europe. Apollo currently supplies BMW with tires in India.
Apollo Chief Marketing Officer Marc Luyten added that the company is negotiating a European fitment deal with VW Group. It currently supplies VW with Apollo-brand original equipment tires in India and South Africa.
Luyten said over the next two to three years Apollo will invest heavily in building the brand in Europe so that its products are as highly regarded here as they are in the Indian.
Apollo has had a presence in Europe since its May 2009 acquisition of Dutch tire maker Vredestein Banden BV, but the 34-year-old firm wants the Apollo brand to make a name for itself not only as a provider of original equipment tires but also replacement tires.
It will enter the aftermarket this year in Germany, Netherlands and the UK and begin selling replacement tires Europewide in 2011.
Managing Director Kanwar said in a statement that Apollo aims to provide affordable, high-quality replacement tires for cars in Europe's small, mid-sized and SUV segments.
Apollo initially will sell European replacement tires under the Amazer 3G Maxx and Acelere Aspire brands for cars and under the Hawkz brand for SUVs.
Apollo's net profit nearly quintupled to 6.5 billion rupees ($137.7 million) on sales of 81.2 billion rupees in its business year that ended in March. The company said it aims to reach sales of $2 billion by
March 2011 and to be one of the top 10 global tire makers – with sales of about $5 billion – by 2015.