FRANKFURT, Oct 28 (Reuters) - German tyre and car parts maker Continental AG said on Monday it had signed a motorbike tyre production and marketing deal with an Indian company, making it the first foreign tyre maker active in India.
In a bid to improve margins in its core tyre manufacturing business, Continental has increasingly shifted production to low wage countries by building its own factories and entering into joint ventures with local companies.
Continental said its deal with Metro Tyres Ltd, an unlisted Indian company, would allow it to gain a share in the Indian motorbike and scooter tyre market, which amounts to 22 million new and second-hand tyres a year.
Metro said in September it had signed a deal with Continental to sell the German company motorbike and moped tyres and tubes for export outside India.