Continental Tyres explores sale of India plant in UP

German tyre maker Continental is exploring a sale of its India manufacturing unit in Uttar Pradesh, where production is not taking place at full capacity, multiple people aware of the development said. Feelers were sent out in August to potential buyers, and Delhi-based Ralson Tyres and a Chinese tyre company have submitted bids, they said. Continental Tyres is seeking more than ₹1,000 crore for the plant, sources said.

A company spokesperson declined to comment on its future plans, but said, "India remains a strategically important market for Continental's tyre business, and we remain committed to sustainable, long-term growth in the country, and being a reliable partner for our customers."

The person further said its plant in Modipuram "is an important part of this commitment."


ET could not identify the name of the Chinese bidder.

Ralson Tyres did not comment when contacted.

The two bidders have made offers for the entire unit as well as for parts of it, people cited above said.

“There is a possibility that they may not go through with the sale,” one of the sources said. “This could just be a valuation benchmarking exercise being conducted under instructions from the company’s headquarters.”

Continental Tires, which ranks amongst the top four global tyre manufacturers, had purchased the Modipuram factory from the Alok Modi group in 2012.

In June 2025, the company announced it will shut its radial truck and bus tyre production line in India. The plant, located alongside the Modi Rubber plant, continues to produce tyres for passenger vehicles and light trucks. It produces less than half a million tyres a year, people cited earlier said.

The Hanover-headquartered company invested more than $126 million (about Rs 1,190 crore at current exchange rate) in the plant between 2012 and 2024 and announced an additional investment of approximately Rs 100 crore to enhance capabilities, the company said in an emailed response to ET’s queries.

Goodyear, which ranks third amongst global tyre manufacturers, had announced a strategic review of its farm tyre business in India last year but did not go ahead with the sale plan.