Apollo Tyres expects to meet $5-billion revenue target by 2025-26, Auto News, ET Auto
Gurugram-based Apollo Tyres, which has witnessed strong sales both at home and overseas despite recessionary concerns stoked by inflation, expects to meet its target of expanding revenues to $5 billion by FY26.
To capitalise on growth opportunities, the company has firmed up plans to launch tyres for electric vehicles across Apollo and Vredestein brands.
Satish Sharma, President (Asia Pacific, Middle East and Africa), Apollo Tyres, told ET that adoption of electric vehicles (EV) is expected to gather pace over the next few years. Accordingly, the company is gearing up to cater to demand both in passenger vehicle and two-wheeler segments.
“The consensual view is that the electric two-wheeler segment will grow the fastest and in that too scooters will be the first followed by motorcycles. The bus segment will also grow,” said Sharma.
The policy framework being put in place by both the central and state governments will spur electrification across categories by the end of the decade. In fact, over a third of two-wheeler sales could be electric by 2030.
“There is every reason to believe that there will be rapid expansion of electric vehicles and, therefore, there will be a growing demand for tyres for such models,” Sharma said.
The company launched two brands – Amperion and Wav – for electric passenger vehicles and two-wheelers, which are designed to reduce noise and increase battery life of EVs.
Sharma said the company will expand the line-up going ahead in India, and also to meet requirements of EVs in the European market through its Vredestein brand.
“It (Vredestein) will be first launched in Europe and then we will bring it to India if required because the real action at the premium end will come from premium players,” he said.
German luxury carmakers such as Mercedes Benz, Audi, and Volvo are looking at introducing more EVs in the country over the next couple of years.
Apollo Amperion will cater to the EVs in hatchback, compact SUV and sedan segments in India, like Tata Nexon, MG ZSE, Hyundai Kona and other upcoming EVs. Apollo WAV has been designed for high-powered electric scooters available in the country, like TVS iQube, Bajaj Chetak and Ather 450.
The company plans to develop EV tyres for motorcycles in the next phase, considering the extremely low numbers in this category currently.
Apollo Tyres is already in discussions with multiple OEMs in India to supply these tyres for the electric vehicles, and will be targeting a “lion’s share” in the EV space in India, in both PV and two-wheeler segments, Sharma added.