Continental slashes first-half capex by 25% in 2026, cuts Tires and ContiTech investments

German automotive supplier Continental has reduced its capital expenditure by 25% year-on-year in the first half of 2026, with the sharpest cuts falling on its Tires division. Group-wide capex for property, plant, equipment, and software totaled €437 million in H1 2026, down from €585 million in the same period of 2025. The decline was driven by the Tires division, where capex fell to €342 million from €467 million, lowering its capex ratio to 5.0% from 6.0% in H1 2025. Investments focused on expanding existing plants in Continental’s ‘best cost locations’ across Europe, the US, Thailand, China, Brazil, and Mexico. Major additions included capacity expansions at Rayong, Thailand; Mount Vernon, Illinois; and the construction of a wind farm at Korbach, Germany. The ContiTech division’s capex dropped to €93 million from €113 million, with funds directed toward expanding production in Germany, the US, Mexico, Australia, and Brazil. Key projects included expansions in Mount Pleasant, Iowa, and Bayswater, Australia, as well as substantial investments in a new hose production plant in Aguascalientes, Mexico. Continental also allocated funds to rationalize existing production processes across all business areas. The group emphasized its strategy of investing in ‘European best cost locations’ while maintaining a leaner capex profile amid shifting market conditions.