A renewed focus on two-wheeler tyres started in December last year. Apollo did make an attempt to penetrate the two wheeler segment as early as 1994 with a brand Black Cat, but it didn't work and the brand was withdrawn. In fact, the story is the same as car tyre segment. Apollo will face a problem in car tyre distribution,'' says an industry insider. Apollo has a good distribution in truck and bus tyre segment, but not in cars.
Most cities have separate markets for the two.
Currently ATL has 38 exclusive stores for non-truck tyres. The company says that it has a slew of strategies which are undergoing finalisation and implementation, and hence cannot be disclosed. For now, ATL is busy improving its cash flow position. It has announced a price hike between 3.5-10 per cent on its range of tyres along with a cut in dealer margins. Besides, it has reportedly cut interest payable on dealer deposits from 24 to 18 per cent.