The market seems to be happy with Apollo Tyres decision of expanding its product portfolio to include manufacture of two-wheeler tyres. It announced that it will start commercial production from Jan’17  from its upcoming plant at Hungary. It will be expanding the capacity of its two plants at Chennai and Hungary for around Rs.4000 crore.

In the two-wheeler category, initially the company will sell its Apollo Acti series of tyres for motorcycles and scooters in the after-market.

This foray could shake up the dynamics of the sector. 2017 will be too early for the company to make any dent in the competitors coffers like MRF, Ceat and TVS but once it gains traction, it is sure to play a leading role.

The company is looking to sell 5 lakh two-wheeler tyres per month over the next two years that would translate roughly into 10% of the market share. In the next five years, the company plans to offer both bias and radial tyres and attain a market share which will be close to a leadership position.