SUV Boom, Premiumisation to Power Continental India’s Growth Ambitions

India has emerged as one of Continental’s most important growth markets globally, driven by improving infrastructure, rising disposable incomes and a rapidly evolving vehicle parc. The company’s recent introduction of the CrossContact AT2 in India reflects the strategic importance it now attaches to the country.

“India absolutely, with the premiumisation, is a key market for us where we put a lot of importance,” said Nevin Aslan-Özkan, Managing Director, Continental Tyres India. “We try to bring our global technology into the market, making sure that whatever the Indian consumer needs, we leverage this in the most appropriate way.”  

According to Aslan-Özkan, India’s automotive market is undergoing a structural transformation, led by the rapid rise of SUVs and utility vehicles. These vehicles typically require larger, higher-value tyres and are creating new opportunities for premium tyre manufacturers.

The shift towards SUVs is already visible in new vehicle registrations, with Aslan-Özkan estimating that around 60-65% of newly registered passenger vehicles now fall into the SUV category. While the overall vehicle parc still contains a large number of smaller cars, she expects the growing share of SUVs in new sales to gradually influence replacement demand as well.  

“There is a clear trend towards premiumisation, people spending more on cars, spending more money also on bigger cars, appreciating the value of a premium car,” she said. “That trend we clearly see. And once you start seeing such a trend, that trend will continue.”  

For Continental, the trend extends beyond vehicle sales, with Indian consumers increasingly evaluating tyres on safety, performance, driving comfort and overall value rather than focusing solely on purchase price. Aslan‑Özkan noted that customers who spend significantly on premium vehicles are becoming less willing to compromise on replacement components, seeking products that match the performance and safety characteristics of the original vehicle.

The company believes this shift in consumer behaviour could create a larger addressable market for premium tyres over the coming years. Asked whether premium tyres could account for a majority share of Continental’s India business within the next five years, Aslan-Özkan was optimistic. “We hope so. That’s our goal. That’s why we are here,” she said.  

Betting on the Replacement Market

Unlike many tyre manufacturers that actively pursue original equipment business, Continental’s India strategy remains firmly focused on the replacement market. “Replacement will be our focus,” Aslan-Özkan said, while noting that the company would continue evaluating attractive OEM opportunities that support sustainable and profitable growth.  

To strengthen its aftermarket presence, Continental currently operates more than 200 Conti Image Shops across the country and intends to expand its reach further. “The most important thing is finding everybody should be able to find a Conti tyre and be proposed to buy a Conti tyre. That will be our goal,” she said.  

The company’s growth strategy centres on improving accessibility, deepening engagement with channel partners and ensuring consumers can readily access its premium products as demand grows.

EVs, Sustainability and Future Readiness

The ongoing transition towards electric mobility is also influencing tyre development. Electric vehicles typically weigh more than comparable internal combustion engine vehicles and require tyres capable of handling higher loads while maintaining low rolling resistance and reduced noise levels.

Aslan-Özkan said Continental’s global experience in larger tyre sizes and EV applications allows it to adapt proven technologies to Indian market requirements. The company is leveraging expertise from mature international markets to ensure its products remain suitable for emerging mobility trends in India.  

Beyond electrification, sustainability is increasingly shaping Continental’s long-term strategy. Globally, the company has set a target of increasing the share of renewable and recyclable materials used in its tyres from around 26% currently to 40% by 2030. It has already introduced products such as the UltraContact NXT, which contains up to 65% renewable and recyclable materials.  

The company’s Modipuram facility in Uttar Pradesh is also aligned with these objectives through the use of biomass-based energy sources and solar power. The facility remains central to Continental’s India strategy. The company recently invested in expanding capabilities at the plant and, according to Aslan-Özkan, believes the site can accommodate its near- and medium-term requirements without the immediate need for a second manufacturing location.  

Looking ahead, Continental expects India’s tyre market to be driven by three major trends: rising SUV adoption, increasing premiumisation and improving infrastructure. Expanding highways, higher disposable incomes and supportive policy measures for new vehicle technologies are expected to further strengthen demand for premium tyres.  

For Aslan-Özkan, the objective is not simply growth, but the right kind of growth. “The most important thing for me is driving growth. Driving growth also in a sustainable way, in a profitable way and also making sure that we leverage in the best possible way the changing customer preferences,” she said.