Kumar cited slower demand in Europe, price cuts and relentless imports of truck & bus radial (TBR) tyres from China as the main reasons for warning on its 2020 revenue target.
Kumar cited slower demand in Europe, price cuts and relentless imports of truck & bus radial (TBR) tyres from China as the main reasons for warning on its 2020 revenue target.
“While we still have the ambition, the growth has to be a profitable one,” said Kumar.
Until three years ago, growth in the European tyre market was outpacing the rest of the world. That has changed now, Kumar said. “We are not insulated from the macro-economic factors,” he added.
Apollo Tyres’s revenue would have been ~US$4 billion now but for the ongoing challenges, Kumar said.
Apollo Tyres on Monday said that it had acquired German tyre distributor Reifencom GmbH for €45.60 million (~INR 323 crore).
Kumar is hopeful that the commencement of the company’s Hungary plant in early 2017 and the acquisition of Reifencom will strengthen its European operations.
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