Continental AG plans an "aggressive expansion" of its retail tire and auto service network in China, according to a new report by China Daily.
The newspaper said Continental Tires China "saw rapid growth in its retail operations last year, adding a further 1,000 authorized franchised stores, giving it a total of 2,500."
Jay Dhillon, general manager of Continental Tires China, told China Daily that 2012 was the company’s “most successful year” in terms of retail location growth, and that, “We will open another 1,000 authorized stores in 2013 – three a day – as well as deepen our footprint into more second- and third-tier cities, and maintain that speed (of growth) over the next three years.”
In addition to its “authorized franchised stores,” Continental also operates a company-owned store system called BestDrive. In February, Conti opened its 12th BestDrive store, located in Beijing, and is looking to add 10 to 15 per year over the next several years, the newspaper reported.
“Establishing BestDrive stores is the key initiative to propel our rapid growth in China,” Dhillon said, “as well as a major step in building our presence in the local retail market.”
Supporting Conti’s OE and replacement market objectives in China is the company’s consumer tire plant in Hefei, China, which recently completed a $175 million capacity expansion. The plant has a current capacity of 8 million tires per year, with a planned capacity of 16 million tires.
