Indian tire maker Apollo Tyres Ltd. today announced its entry into Saudi Arabia through a tie-up with Al-Jomaih Tyres Company Limited, the exclusive distributors for 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 tire sectors.
Saudi Arabia has an annual market potential of around 22 million tires, according to Apollo, has set "an aggressive" goal of selling nearly 800,000 tires per year there within the next five years.
The agreement is the culmination of a long-term product and planning program, according to Shubhro Ghosh, Apollo's group head, ASEAN, Middle East & Africa.
"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," Mr. Ghosh said.
Apollo, he added, expects its partnership with Manchester United football club to help position the group's brand and products in the Saudi market. Tires sold in Saudi Arabia will be customized 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," Abdullah Al-Jomaih, CEO of Al-Jomaih Tyres, said.
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.