Continental sets sights on replacement market

"We will add about 12 more this year and expect similar growth in the next few years to cover all major cities," Dhillon said.

Dhillon said the company was also heading into the original equipment manufacturer - or OEM - segment.

"From 2015 to 2017, you will see a lot of new cars with Continental tires, from global partners General Motors, Mercedes-Benz and BMW, as well as Chinese brand Qoros," he said. "We are also bidding on some local business with homegrown brands."

Continental plans to double the annual capacity of its Hefei plant from 4 million to 8 million tires in the coming years to meet market demand.

"We are now working on a strategy to balance our business in China from more than 90 percent in replacement currently to a healthy ratio of 60 to 40 between replacement and the OEM business," said Dhillon.

Youth focus

"Young Chinese, the major market for Continental's replacement tires, pay more attention to performance, safety and quality than their parents and their consumer habits are different," Dhillon said.

He said the younger generation shops online and pays attention to comments from previous buyers.

"We got some key opinion leaders and consumers to test our tires and share information about their experiences," he said. "It really helped."

As one of the official sponsors for the 2014 FIFA World Cup, Continental took the opportunity to launch a marketing campaign during the summer to further promote the brand and engage with the young audience.

Along with a series of football-themed activities, Continental also rolled out a limited edition FIFA tire - the ContiMaxContact MC5 - to ignite passion among football fans in China. Dhillon said demand for the tire, which featured a football and the 2014 FIFA trophy, far outstripped supply.

"We saw great enthusiasm among Chinese football fans and the marketing campaign was a milestone in our local strategy," he said. "China is one of the most important markets for us and we are keen to continue our global success here to further strengthen the emotional bond between our brand and Chinese consumers."

The company has sponsored international and regional football tournaments for the last 18 years and acquired a rights package from the 2015 AFC Asian Cup to be the first tire manufacturer to sponsor a top Asian football event.

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