"Expansion of this business is one of the top initiatives for further sustainable growth forauto industry suppliers," said Ivo Naumann, managing director of AlixPartners.
Although more than 90 percent of Continental's China business comes from tirereplacement, the remainder is from the original equipment tire sector, or those whichare selected by automakers to come with new vehicles.
Dhillon said he hoped for a more-balanced 65/35 percent split.
He said his confidence in increasing that original equipment, or OE, business comesfrom not only long-term partnerships with European car brands, but also from risinglocal Chinese brands.
"The future local production of Volvo and Jaguar Land Rover vehicles will definitelyboost our OE business," Dhillon added.
To support its market presence, Continental also expanded its production capacityheavily in 2012, investing 134 million euros ($175 million) in the second phase of itsplant in Hefei, which will soon have an annual production capacity of 8 million tires.
The plant is designed to reach a capacity of 16 million.
Italian tire maker Pirelli & C SpA said recently it is planning a $200 million investment tomake China its largest global manufacturing base by 2014.
In January, French tire giant Michelin Group said it invested nearly $1.5 billion to openits biggest factory overseas in Shenyang, Liaoning province, to help accelerate itsbusiness by two to three times in coming years.
Statistics show that total tire production in China, the world's largest tire consumer, wasexpected to reach 483 million in 2012, a growth of between 5 and 7 percent on 2011,accounting for almost a third of global output."Expansion of this business is one of the top initiatives for further sustainable growth forauto industry suppliers," said Ivo Naumann, managing director of AlixPartners.
Although more than 90 percent of Continental's China business comes from tirereplacement, the remainder is from the original equipment tire sector, or those whichare selected by automakers to come with new vehicles.
Dhillon said he hoped for a more-balanced 65/35 percent split.
He said his confidence in increasing that original equipment, or OE, business comesfrom not only long-term partnerships with European car brands, but also from risinglocal Chinese brands.
"The future local production of Volvo and Jaguar Land Rover vehicles will definitelyboost our OE business," Dhillon added.
To support its market presence, Continental also expanded its production&nbs
