Japanese tyre maker Yokohama is taking a bold step towards local production in India to establish a “sustainable and competitive” business model in the country. According to the company’s top official, Yokohama Rubber company, which already has a wholly-owned subsidiary in India, is planning to open a new plant in Visakhapatnam alongside its existing plant in Bahadurgarh, Haryana.
In an interview with PTI, Harinder Singh, Yokohama India’s Managing Director and CEO, mentioned that the company can currently produce tyres with diameters of up to 18 inches within the country, but they have plans to expand this capability to accommodate tyre sizes of up to 22 inches. This expansion will allow them to cater to the increasing demand for larger-sized tyres.
“Although we still import certain high-end tyres, such as run-flat tyres commonly used in luxury vehicles, from our overseas manufacturing bases, our commitment to local production in India remains strong,” Singh added.
Furthermore, Singh expressed Yokohama India’s support for the government’s decision to ban tyre imports into the country. He stated, “Yokohama India fully supports this decision and understands the importance of investing in local production. Our investment in the Vizag plant not only demonstrates our commitment to the Make in India initiative, but also positions the company to capture a larger share of the premium SUV market by offering locally manufactured, high-end tyres.”
According to Singh, local production not only reduces costs, lead times, and dependency on imports, but it also contributes to a more sustainable and competitive business model. With the ability to manufacture tyres up to 22 inches, combined with faster and more economical localization efforts, Yokohama is well-positioned to meet the increasing market demand for SUVs, MPVs, and premium vehicles in India.
In 2020, the government implemented restrictions on the import of certain new pneumatic tyres for motor cars, motorcycles, buses, and lorries, aiming to promote domestic manufacturing. Prior to 2020, tyre companies had no limits on tyre imports. However, they are now only allowed to import a limited number of tyres under a specific import license.
With the establishment of the new Visakhapatnam plant, Yokohama expects to better serve the needs of Original Equipment Manufacturers (OEMs) and the aftermarket. Expanding their product range and production capabilities to include premium and larger tyres is a strategic move that aligns with customer preferences and the growing demand for such tyres in the Indian market.
Earlier this year, Yokohama announced its plan to invest USD 82 million in the Visakhapatnam facility, with the aim of producing passenger car tyres. This investment will enable the company to increase its annual production capacity from the current 2.8 million to 4.5 million tyres by 2025. The new production line is scheduled to begin operations in the fourth quarter of 2024 and will be capable of manufacturing passenger car tyres up to 22 inches in size.
In addition to the Visakhapatnam plant, Yokohama has also invested approximately USD 154 million in its Bahadurgarh facility. Singh emphasized that through strategic investments, continuous improvement, and a customer-focused approach, the company is steadily progressing towards its goals of increased production capacity and market expansion in India.
Singh also mentioned that Yokohama is planning to enhance its sales infrastructure in the country over the next few years. He stated, “We have plans in place to expand our footprint by 20 percent this year and another 20 percent in the next two years.” Currently, the company has around 2,800 dealers and operates a network of more than 550 Yokohama Club Network (YCN) stores nationwide.
Yokohama entered the Indian market in 2007, and since then, it has been making strides towards establishing a strong local presence and contributing to India’s automotive industry.
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