Yokohama India Sets Sights on Fifth Place in Automobile Radial Tyre Market with Promising Production Growth

Yokohama India, a subsidiary of the globally renowned Yokohama Rubber Co., Ltd. based in Tokyo, Japan, is strategically positioning itself to climb up to the fifth position in the highly competitive passenger car radial tyres segment of the Indian market. Currently, Apollo Tyres, CEAT, and MRF dominate this sector, but Yokohama India aims to surpass their market presence and establish itself as a leading player. With an ongoing capacity expansion plan and an unwavering commitment to quality, Yokohama India is poised for success.

Expanding Capacities For Enhanced Market Reach

Yokohama India has set its sights on the fifth position in the Indian market and has already taken concrete steps towards achieving this goal. By 2025, the company plans to increase its annual production capacity from 2.5 million tyres to an impressive 4.5 million units. The capacity expansion initiative represents a significant investment of $82 million, adding to the company’s existing investment of nearly $154 million. This move is expected to help Yokohama India keep pace with the rising demand and reinforce its position in the industry.

Strong Sales Growth And Ambitious Targets

Over the past three years, Yokohama India has demonstrated remarkable growth, with sales more than doubling to approximately 2.1 million units. Setting ambitious targets for the future, the company aims to achieve a remarkable 50% growth rate this year, approaching the 3 million unit mark. According to Harinder Singh, Chief Executive Officer and Managing Director of Yokohama India Private Ltd., their strategic plans position them as the fifth largest player in the market by the end of 2025.

Focusing On Original Equipment Manufacturers (OEMs)

While Yokohama India has primarily served the replacement market, the company recognizes the importance of expanding its presence among original equipment manufacturers (OEMs). Currently limited by production capacities, Yokohama India plans to enhance its supply to OEMs significantly. As the company moves towards achieving its production target of 4.5 million units, OEM partnerships will play a crucial role in its growth strategy. Yokohama India understands the potential of the OEM market and aims to capitalize on it effectively.

Expanding Dealer Network And Branded Stores

Yokohama India boasts a strong network of approximately 2,800 dealers, along with a growing number of branded stores known as the Yokohama Club Network (YCN). With over 550 stores contributing nearly 60% of their overall sales, these branded stores are a key component of Yokohama India’s distribution strategy. In the coming years, the company plans to further expand its dealership network by 20% annually. Yokohama India recognizes the value of the branded stores and considers them instrumental in reaching out to a wider customer base.

Diversifying Product Range And Market Presence

In addition to its focus on passenger cars and off-roader radial tyres, Yokohama India aims to expand its operations in India by introducing tyres for trucks and buses. With plans to launch these offerings soon, the company is already working on developing Truck and Bus Radials (TBRs) specifically tailored for the Indian market. Leveraging their expertise and experience, Yokohama India is poised to cater to the growing demand in the commercial vehicle segment, further strengthening their market presence.

Positive Outlook On The Indian Market

Despite the challenges faced by the overall tyre sector, Yokohama India remains optimistic about the Indian market. With a thriving passenger vehicle segment and a promising future, the company believes that the automotive industry will continue to flourish. Yokohama India is well-prepared to capture a significant market share and reap the benefits of this growth. Their commitment to safety, performance, and customer satisfaction positions them as a leading choice for Indian drivers.

In Conclusion

Yokohama India, backed by the legacy and technological advancements of Yokohama Rubber Co., Ltd., is determined to ascend to the fifth position in the Indian automobile radial tyres market. With its ongoing capacity expansion, focus on OEM partnerships, expanding dealer network, and diversified product range, Yokohama India is well-positioned for success. Their commitment to excellence and customer-centric approach ensures that Indian drivers can rely on Yokohama tyres for superior quality, performance, and safety on the road.