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Tire maker mulls possibility of India investment

2012/06/16 20:03:49

Taipei, June 16 (CNA) Cheng Shin Rubber Ind. Co. Ltd., one of Taiwan's leading manufacturers of tires for cars, motorcycles andbicycles, said Saturday it might set up a production base in Indiato tap the fast-growing market there.

Cheng Shih President Chen Yun-hwa said demand from emerging economies, including India and countries in Africa and the Middle East, remains strong despite the escalating debt problems in the eurozone.

Chen said a slowing global economy amid the European debt crisis seems to have had only a limited impact on the Indian market.

Cheng Shin has already been working with three major car makers in India -- Tata Motors, Maruti Suzuki India and Mahindra & Mahindra -- producing tires for certain of their models.

According to Cheng Shin, the Taiwanese company is planning to open a representative office in India later this year and to send technology specialists there to strengthen after-sales service.

In addition, the tire maker is gearing up to penetrate the China market by selling its products under three brand names -- Cheng Shin,Maxxis and Sakura --to cater to the wide range of Chinese customers and grab a higher market share.

In 2011, the greater China area, including Taiwan, accounted for 63 percent of Cheng Shin's total sales, followed by the Americas with 13.3 percent, the Asia-Pacific with 11.5 percent, Europe with 7 percent, and the Middle East and Africa with 5.2 percent.

Last year, Cheng Shin posted NT$119.96 billion (US$4.0 billion) in sales, up 19.99 percent from a year earlier, while recording NT$8.59 billion in net profit, down 17 percent year-on-year, with earnings per share of NT$3.45.

(By Tien Yu-pin and Frances Huang)