Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Global Tire Report
    • ADAS
    • MID YEAR REPORT
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OPINION
    • SERVICE ZONE
    • BEST PLACES TO WORK
    • OBITUARIES
  • HUMANITARIAN
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • ADVERTISE
    • Events
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 13, 2021 10:00 AM

Apollo isn't planning U.S. plant — yet

Don Detore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Apollo photo

    ATLANTA — It begs the question: With all the emphasis and resources that Apollo Tyres Ltd. is expending on the North American market, could a greenfield plant here be its next big project?

    After all, it would seem logical, given its push not only in the passenger tire market, with its recent relaunch of the Vredestein brand, but also with its launch of Apollo-branded commercial tires.

    The short answer: No.

    But the more intriguing answer? Give it three to five years, and that answer could change.

    After investing upwards of $20 million into its North American product design and launch, the Indian tire maker must "settle our assets, as we have been investing and investing and investing," Apollo Chairman and Managing Director Onkar Kanwar told Tire Business.

    "People are looking at short term," Mr. Kanwar said. "In this kind of field, in any industry, they look at quarterly results. We have been putting a lot of emphasis on creating assets. The idea is to seek these assets for the next two or three or four years, and meanwhile develop this market, seize the market, then go in a big way.

    "Hopefully by then, we'll be able to think of a greenfield plant."

    Mr. Kanwar said as the company continues to build its North American base within the next three to four years — with a goal of $200 million in sales — "Then we will start thinking of setting up a base there, so that we can treat the local market and be close to the OEMs. The idea is, in the first year to be one of the most respected tire manufacturers."

    Mr. Kanwar, along with his son, Vice Chairman Neeraj Kanwar, said the Gurgaon, India-based tire maker has been able to cut "bad" costs significantly over the last few months, as it adjusts to pandemic-related sales decreases.

    The company identified and eliminated excess travel, warehousing, offices and manpower that have helped the bottom line. In fact, fixed costs have decreased 14%, according to Neeraj Kanwar.

    Apollo's fiscal year, which runs from April through March, "has been extremely good," except for first two months, Neeraj Kanwar said.

    "Ever since then, India opened up, and the automotive industry really started coming back," he said, noting that agricultural tire sales have been particularly strong, with 60% to 70% growth in India.

    The commercial market remains down, he said, but he sees positive trends. In the fourth quarter (period ending March 31), both passenger and commercial OEMs in India have shown double-digit growth.

    "People are starting to look at buying more cars for themselves and not taking public transport," Neeraj Kanwar said.

    Research and development continues to remain a priority, he said, especially as the commercial line rolls out in North America.

    And that may mean another expansion in the U.S.: a satellite R&D office.

    "My own vision — depending on the U.S. market and how our team is able to do — eventually we would need a satellite division in the U.S. market," Neeraj Kanwar said. "You have to understand the customer, you have to be sitting there eating what he's eating and how he's spending his time on the vehicle.

    "You have to understand the local needs and the local desires. Timing-wise I don't know when, but it could happen in the near future, or in the next four to five years, but definitely we are going in the right direction."

    He foresees those employees as local hires.

    "That's my vision," he said. "I really have a belief in that because people need to be there in (the U.S.) to know your customer much better."

    Related Article
    Apollo lands: Tire maker brings commercial portfolio to N.A.
    Apollo upgrading ag tire capacity at Dutch plant
    Vredestein takes aim at Tier 1 brands in North America
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    USTMA: Demand for passenger tires grew in 2023
    2
    Passenger tire imports up in Q3 but LT, TBR drop
    3
    Yokohama unveils ‘extreme traction' truck tire for snow, ice
    4
    Tire Business ranks the Top 75 Tire Makers of 2023
    5
    Kumho set to launch Solus all-weather passenger tire
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Global Tire Report
      • ADAS
      • MID YEAR REPORT
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OPINION
      • SERVICE ZONE
      • BEST PLACES TO WORK
      • OBITUARIES
    • HUMANITARIAN
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • ADVERTISE
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION