Continental AG will invest in India by 2013 to strengthen its operations in the country.
The company will invest over Rs 800 crore in all to expand its operations and to foray into the radial tyres segment. The firm will spend Rs 500 crore to ramp up its electronics division and enhance its R&D capabilities. Of which it will utilise Rs 100 crore every year on electronics equipment for introducing new products from the Bangalore plant and Rs 150 crore every year on its R&D division.
It will pump in Rs 330 crore at Modi Tyres' plant at Modipuram in Uttar Pradesh to get into the radial tyre segment. The production of radial tyres will be commenced with an initial capacity of 8,00,000 units per annum. The company will launch radial tyres for both commercial and passenger vehicles from the plant by 2013.