India-based Apollo Tyres, one of the leading tyre manufacturers in the world, has announced its entry into Saudi Arabia through a tie-up with Al-Jomaih Tyres Company Limited, the exclusive distributors in the kingdom.
Apollo aims to “capture a sizable market share in the next couple of years”, focusing on the truck and bus radial and passenger tyre sectors, said a statement from the company.
Saudi Arabia has an annual market potential of around 22 million tyre, according to Apollo, has set "an aggressive" goal of selling nearly 800,000 tires per year there within the next five years, it said.
The agreement is the culmination of a long-term product and planning programme, according to Shubhro Ghosh, Apollo's group head, Association of South-East Asian Nations (Asean), Middle East & Africa.
Ghosh said: “We are now ready with products suited to cater to the Saudi market, which is the largest and important replacement tire market in the Middle East region, through our dedicated team of sales and service professionals, and a very able business partner in Al-Jomaih Tyres.”
Apollo, he added, expects its partnership with Manchester United football club to help position the group's brand and products in the Saudi market. Tyres sold in Saudi Arabia will be customised to meet the local market requirements and be covered by a five-year warranty from the date of manufacturing.
The premium Tier 2 market in Saudi is expanding rapidly, and Apollo "meets the need of local customers who are seeking quality products at competitive prices," said Abdullah Al-Jomaih, CEO of Al-Jomaih Tyres.
Apollo set up a hub for the Middle East and Africa region in Dubai in 2011 and has since expanded its presence rapidly across the region, according to its statement.
Apollo Tyres Ltd is an international tyre manufacturer and the leading tyre brand in India. The company has multiple manufacturing units in India and a unit each in The Netherlands and Hungary. The company markets its products under its two global brands – Apollo and Vredestein, and its products are available in over 100 countries through a vast network of branded, exclusive and multi-product outlets. – TradeArabia News Service