Pirelli & C SpA, one of the world's top five tire makers, is looking for opportunities to work withChinese homegrown automotive manufacturers to provide tailored products, amid boomingdemand for high-end SUVs and electric cars, said a senior company manager.
"It is very important to work with local car players－that is a traditional business model forPirelli," said Gregorio Borgo, director of general operations of Pirelli.
Citing the success of working with Fiat in Italy and Ford Motor Co in the United States, Borgosaid Pirelli needed to localize its strategy, focusing on the booming the SUV and electric-vehicle sectors in China.
"Demand for SUVs and electric cars in China is growing very fast, and they are both good inquality and technology," said Borgo.
Sales of Chinese self-developed SUVs increased 58 percent year-on-year in the first quarterof 2016, according to the China Association of Automobile Manufacturers.
"I know there have been a lot of beautiful SUVs and electric cars developed in China in recentyears. We need to provide better tires for them," said Borgo.
Borgo said China's automotive market is in volatility, but demand for premium cars is stillgrowing rapidly.
According to Borgo, the Chinese market for prestige cars including Porsche, Ferrali andLamborghini, which are partners of Pirelli, grew by 26 percent year-on-year in 2015.
Also, sales of premium cars in China, including BMW, Audi, Volvo and Mercedes-Benz, grew7.5 percent year-on-year in 2015, according to Borgo.Gregorio Borgo, director of general operations of Pirelli.[Provided to China Daily]
"So, we are still expecting rapid growth in the Chinese tire market due to the growing demandfor luxury cars," said Borgo.
Borgo made the remarks after Pirelli launched its latest P Zero tire in the Asia-Pacific regionin Shanghai on Tuesday.
Also, Pirelli, the official Formula One tire supplier, launched a new variant－Dragon Sport－toaddress the local needs in the Asian market.
The Dragon Sport tire, a product fully developed and manufactured in Pirelli's Yanzhou plantin Shandong province, is the company's answer to the growing needs of brand sensitiveowners of midrange class and synergic vehicles, said Borgo.
Guiseppe Cattaneo, chief executive of Pirelli Asia-Pacific, said the company would expand itsretail network considerably to take advantage of the growing demand for privately ownedcars.
"The tire replacement market in China has not been fully explored yet. This is both achallenge and an opportunity for Pirelli," he said.
China National Chemical Corp's acquisition of a controlling stake in Pirelli, which wasannounced about a year ago, would certainly push forward the development of its business inChina, said Cattaneo.
