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Continental (Continental AG) is a German transport industry manufacturer founded in 1871 and headquartered in Hanover, originally a rubber products enterprise. Its main business covers tires, braking systems, vehicle stability control systems, engine injection systems, and automotive electronic components. It is Europe's largest auto parts supplier, the world's fourth-largest tire manufacturer, and one of the global market leaders in segmented automotive industries.
Continental ranked 357th in the 2025 Fortune Global 500, with revenue of approximately $42.95 billion. The current CEO of the group is Christian Kötz, who assumed duties on January 1, 2026, and has served long-term in the group's tire business division since 1996. After acquiring Siemens VDO in 2007, Continental joined the ranks of the top five global automotive parts suppliers. The group has 336 production, R&D, and administrative bases in 54 countries and markets, with a total workforce of 92,653 (2025), plus 807 company-owned tire sales points and approximately 6,000 brand franchise locations.
Continental's development history over more than 150 years is a transformation from a rubber manufacturer into a global tech giant. Founded in Hanover in 1871, it initially produced soft rubber products, solid tires, and pneumatic tires for carriages, and began producing car and truck tires in 1898. In 1904, it launched the world's first patterned car tire.
After entering the 21st century, Continental achieved leapfrog growth through several key acquisitions. In 2004, it acquired German Phoenix AG; in 2007, it acquired Siemens VDO for €11.4 billion, thereby expanding its business from tires to core components such as automotive electronics and braking systems. Since then, Continental, together with Bosch and Denso, has joined the top tier of the global Tier 1 category.
In the 2020s, Continental launched a deep transformation focused on electrification, intelligence, and connectivity. In 2022, it commissioned the world's first 5G digital super factory in Changsha, with a total investment exceeding 500 million RMB and a building area of approximately 28,000 square meters. In 2024, it launched a large-scale restructuring plan, expected to cut over 20,000 jobs.
2025 was a pivotal strategic year for Continental. In January, the Automotive Division began independent operations under the name Aumovio, completed its spin-off on September 17, and was listed on the Frankfurt Stock Exchange with a market value of approximately €3.5 billion. In December, Christian Kötz succeeded Setzer as CEO. Thereafter, the group clarified its focus on high-profit businesses centered on tires. The ContiTech Division also plans to complete its spin-off and achieve independent operation in 2026, forming a new pattern of three independent companies, each showing its strengths.
Continental's business structure underwent a major strategic restructuring in 2025, forming a new system of "two divisions plus eight business areas." Effective January 1, 2026, the group consists of two divisions, Tires and ContiTech, comprising a total of eight business areas.
Tire Division: Continental's core profit engine, providing a complete tire product portfolio for passenger cars, trucks, buses, two-wheelers, and special vehicles. In 2025, total tire business sales reached €13.8 billion, with over 85% of sales coming from the replacement tire market and 24% from automotive OEM supply. In 77 independent tests globally, Continental brand tires ranked in the top three in over 80% of them. Premium sub-brands such as Continental and General Tire target different consumer tiers. Ultra High Performance (UHP, 18 inches and above) tires account for 62% of Continental brand passenger car tire sales, an increase of 2 percentage points from the previous year.
ContiTech Division: Focuses on material-driven industrial solutions, with products covering hoses, conveyors, air springs, drive belts, and surface materials, providing technical solutions for industrial fields such as energy, mining, agriculture, construction, and automotive. Total sales in 2025 were approximately €6 billion. The OESL (Automotive Parts Supply Solutions Business Group) was successfully sold in February 2026. The overall ContiTech spin-off procedure was launched in 2026, ultimately aiming to achieve independent operation.
In 2025, Continental faced a situation where transition pains coexisted with stable profitability. Full-year consolidated sales were €19.7 billion (excluding the divested automotive business), down 2% year-over-year. The organic growth rate was 0.8%, and the adjusted EBIT margin was 10.3%. Adjusted EBIT was approximately €2 billion, down 8% year-over-year. Adjusted cash flow improved significantly to €959 million, an increase of 60.4% year-over-year.
The Tire Division showed high resilience, achieving sales of €13.8 billion with an adjusted EBIT margin of 13.6%, basically flat compared to the previous year, despite facing cost pressure from tariffs and exchange rate fluctuations exceeding €100 million. The tire business ranked in the top three globally in over 80% of 77 independent evaluations; its brand power is self-evident.
In Q1 2026, overall sales were €4.4 billion, with organic growth of -0.9% due to macroeconomic conditions. However, adjusted EBIT reached €522 million, a year-on-year increase of 6.1%, with profit margins rising from 10% to 11.9%, showing a strong recovery trend.
The ContiTech Division recorded sales of €6 billion, down 6%, with a margin of 5.3%, affected by weak industrial market demand. Full-year net income was -€165 million, mainly due to special financial impacts related to non-cash provisions (related to the Aumovio spin-off and OESL sale, approximately €1.2 billion), while the operational level still maintained resilience.
In Continental's transformation process, the comprehensive upgrade of core technologies has always been the cornerstone for penetrating competition.
Millimeter-wave radar technology: The group has deep expertise in radar technology for over 25 years. After launching the 6th generation millimeter-wave radar in 2023, it achieved a milestone of 200 million cumulative radar deliveries in March 2025. In August of the same year, it secured the domestic first single-radar Automatic Emergency Braking (AEB) system order. Based on the 6th generation waveguide radar, the detection distance reached 280 meters, capable of stably identifying vulnerable road users, with mass production planned for Q1 2026.
Intelligent Cockpit and Advanced Driver Assistance: At the 2025 Shanghai Auto Show, Continental launched the Luna entry-level intelligent driving solution (a driving and parking integrated domain controller with 1V1R to 1V5R multi-mode configuration) and the Astra advanced solution (11V1R multi-sensor fusion).
Future Braking Systems: In 2025, it launched the Green Electronic Caliper (requiring no hydraulic fluid, reducing weight and saving carbon), integrated with the Corner Module solution. The latter integrates the drive motor, braking system, and steering suspension at a single wheel end, achieving 150-degree steering capability based on the wheel.
Tire Technology Innovation: In August 2025, the aContact tire series was launched, developed specifically for autonomous driving fleets and Robotaxis, featuring safety performance such as short braking distance and wet road handling, as well as low rolling resistance and long endurance.
AI Night Vision Cameras and Windshield Projection Technology are also constantly expanding frontiers in the overall architecture.
In terms of Software-Defined Vehicles, Continental partnered with Horizon Robotics to build Continental Intelligent Driving, launching the Xelve modular system, achieving Level 2 to Level 4 autonomous driving hardware and software configuration. Continental also established the AESS Semiconductor Division (Fabless model), collaborated with GlobalFoundries to independently develop customized SoCs, and enhanced control over key chip supply chains.
Continental's globalization layout spans six continents, with production, R&D, and management systems highly coordinated. The group has invested in China for nearly 30 years, establishing 18 production bases, 8 R&D centers, and employing over 16,000 people, covering the Continental China Headquarters in Yangpu District, Shanghai, and a manufacturing network across the country. The commissioning of the Changsha 5G digital factory in 2022 further solidified digital manufacturing. In 2025, 14% of Aumovio sales came from the Chinese market.
In 2025, the group announced an investment of over €300 million to expand the Thailand Rayong factory, enhancing tire production capacity in the Asia-Pacific region. In North America, in 2025, it spent $90 million to build a second factory in Aguascalientes, Mexico, for ContiTech industrial hose production, also simultaneously enhancing regional supply chain resilience and operational flexibility. In the same year, it planned to invest over $85 million to expand the Mount Pleasant factory in Iowa, USA, to increase capacity. In December 2025, the group announced the sale of its drum brake base in Italy to Mutares. At the same time, ContiTech in India focuses on industrial field businesses and gradually weakens automotive-related operations.
Continental's future picture revolves around three strategic threads: Focus, Independence, and Intelligent Leap.
Business Focus: After completing the Aumovio spin-off and listing, Continental will retain the tire business as its main business and spin off ContiTech to become an enterprise focused on high-profit tire manufacturing. This structural simplification means Continental's goal is to become a lighter, more specialized, and highly profitable tire technology leader.
Spin-off Process: The ContiTech Division has started preparations for independent operation, planning to complete the sale within 2026, with over 80% of its sales coming from industrial clients from 2026 onward. The OESL automotive parts supply business was closed in February 2026, marking the implementation of a key step in divesting industrial material businesses.
Technology Breakthroughs and Intelligence: Aumovio is focusing on high-value intelligent systems—high-performance computing platforms, sensor fusion, ADAS, and cockpit domain controllers—setting medium-to-long-term profit margin targets (4%-6%, rising to 6%-8%). Self-developed chips, CB Corner Modules, and other high-value-added products will continue to be launched. Continental enters the Modular Robot System (CMR) field (logistics, agriculture) for the first time, expanding horizontal applications with automotive electronics experience.
Looking ahead to 2026, Continental's core task will be to accelerate the transformation pace in the final restructuring stage. Relying on the stable global tire profit foundation and the dual engines of technology upgrades and automotive intelligent systems, it will welcome a new stage of stable transition and high-quality development.
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