Interview with Jose De la Fuente, Managing Director, Continental Middle East

Q1: How do the recently introduced tyre models at Continental align with the strategic objectives set for the Middle East?

The introduction of our new tyre models, CrossContact and UltraContact in the Middle East is a direct reflection of Continental's commitment to innovation and addressing the unique needs of this market. Both tyre models prioritise mileage, long service life, and environmental sustainability, showcasing Continental's commitment to shaping the future of automotive technology. The adaptability of the CrossContact, accommodating rim diameters from 15 to 21 inches, addresses diverse consumer preferences. Whilst the harmonious tread pattern design, on the UltraContact complemented by uniquely shaped sipes, delivers compelling performance and short braking distances even on wet roads. Additionally, noise-absorbing elements in the grooves contribute to a more peaceful driving experience. In summary, Continental's introduction of these tyres strategically meets the Middle East's demand for performance, durability, safety, and sustainability in the evolving automotive market. 

Q2: As the newly appointed Managing Director, could you explain Continental's specific aspirations for the Middle East? Furthermore, what strategies do you plan to implement to achieve these objectives?

Continental aims to solidify its position as a leader in the Middle East, emphasising customer-centricity and sustainable growth. Sustainability forms the bedrock of our strategic vision. We are dedicating substantial resources to research and development to engineer tyres with an elevated proportion of sustainable materials, with the ambitious goal of achieving 100% sustainability in our flagship products by 2050. Our dedication extends beyond product innovation to encompass our manufacturing processes. We are committed to establishing a 100% carbon-neutral and responsible supply chain by 2050, achieved through the utilisation of renewable energy sources and a concerted effort to minimise waste generation.

In addition, we are making significant investments to enhance our customers' mileage, contributing to the reduction of their environmental footprint. This comprehensive approach underscores our commitment to fostering sustainability across every aspect of our operations and products.

Q3: Considering the growing emphasis on sustainability in the automotive industry, how is Continental approaching and integrating eco-friendly initiatives and practices into its Middle East operations, considering the region's distinctive challenges and opportunities?

Continental places a paramount emphasis on sustainability across its global operations, actively incorporating eco-friendly initiatives into our endeavors in the Middle East. This commitment extends beyond the mere creation of environmentally conscious products; we meticulously consider the entire life cycle of our offerings. A notable illustration of this approach is the recent launch of a volleyball court crafted from repurposed tyres in Dubai. Our objective goes beyond contributing to a more environmentally friendly automotive sector; we also seek to raise awareness within the Middle East market about the pivotal role sustainability plays in Continental's values. This initiative aligns with our goal of meeting the specific needs of the Middle East market while fostering a greener automotive landscape.

Q4: Looking ahead, what prospects and obstacles does Continental Tires anticipate encountering in the regional landscape?

We continuously engage in innovative endeavors and boast a diverse tyre portfolio tailored for various car brands, ensuring road safety. Our strategic vision involves forging partnerships with esteemed brands, both at the product level and as part of our overarching mission towards 'Vision Zero.' 

This ambitious goal spans three successive stages: progressing from the best in braking to achieving zero fatalities, zero injuries, and zero crashes. With the ongoing proliferation of intelligent cars, advancements in tyre technology, and heightened connectivity, the potential to realize Vision Zero in the region has never been greater.

The Middle East presents an enticing landscape characterized by expanding populations and individual economies, offering an opportunity for increased demand for automotive products. The surge in demand for electric vehicles, particularly in Gulf countries and Jordan, presents opportunities, as there is a growing need for tyres tailored to electric vehicles. Continental Tires have garnered popularity in the electric vehicle realm, having secured original equipment approvals for over 300 vehicle models. Notably, seven out of the top 10 global electric vehicle manufacturers rely on Continental Tires for their original equipment, resulting in a higher market share in the electric vehicle segment compared to combustion engine cars.

We also identify a notable shift in customer behavior as an opportunity. Customers are increasingly seeking convenience, particularly in mobility solutions. Factors such as online ordering, one-stop shopping, peace of mind, professional service, and a well-established branded retail network are becoming pivotal elements in shaping the customer journey.

Q5: Reflecting on the past year, how would you assess the progress made by Continental? Additionally, what areas do you anticipate focusing on for improvement in the upcoming year?

The past year has seen commendable progress for Continental, marked by successful product launches and market expansions. While we celebrate these achievements recently at COP28, our focus for the upcoming year will be on enhancing operational efficiency, advancing sustainability initiatives, and continuously improving our products and services to meet evolving customer expectations.

Furthermore, we are keen on strengthening collaborations with industry partners, fostering innovation in technology, and maintaining a steadfast commitment to the highest standards of quality and customer satisfaction.