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Yokohama accelerates local tire production in India
Industry News- Oct 19,23
Yokohama Rubber, operating in India through a wholly-owned subsidiary, is constructing a new facility in Visakhapatnam, supplementing its existing plant in Bahadurgarh, Haryana.
Japanese tire manufacturer Yokohama is emphasising local production in India as a cornerstone of its sustainable and competitive business approach in the country, as confirmed by a senior company official. Yokohama Rubber, operating in India through a wholly-owned subsidiary, is constructing a new facility in Visakhapatnam, supplementing its existing plant in Bahadurgarh, Haryana.
During an interview with PTI, Harinder Singh, Yokohama India's Managing Director and CEO, stated that the company has the capability to produce tires with diameters up to 18 inches domestically and plans to extend this capacity to accommodate sizes up to 22 inches, addressing the demand for larger tires. Singh affirmed the company's unwavering commitment to local production, even though certain high-end tires, like run-flat tires commonly used in luxury vehicles, are imported from their overseas manufacturing bases.
Singh highlighted the importance of investing in local production, stating that Yokohama India fully supports this decision. The investment in the Vizag plant aligns with the Make in India initiative, allowing the company to capture a significant share of the premium SUV market by offering locally manufactured high-end tires. Local production not only reduces costs, lead times, and dependence on imports but also contributes to a more sustainable and competitive business model.
Yokohama's move towards faster and more economical localisation, coupled with its ability to manufacture tires up to 22 inches, positions the company to meet the increasing market demand for SUVs, MPVs, and premium vehicles in India. Singh noted that the Indian government's restrictions on tire imports in 2020 led to the company's decision to establish a new plant in Visakhapatnam, enhancing its ability to cater to Original Equipment Manufacturers (OEMs) and the aftermarket.
The strategic expansion of product range and production capabilities to include premium and larger tires aligns with evolving customer preferences and the growing demand for such tires in the Indian market. Earlier this year, Yokohama announced an $82 million investment in setting up a production unit in Visakhapatnam to manufacture passenger car tires. This investment aims to increase the company's annual passenger car tire production capacity in India from 2.8 million to 4.5 million tires by 2025. Production at the new facility is scheduled to commence in the fourth quarter of 2024, focusing on passenger car tires up to 22 inches.
Singh emphasised Yokohama's commitment to increasing production capacity and expanding its market presence in India through strategic investments, continuous improvement, and meeting customer needs. The company also plans to enhance its sales infrastructure in the country, with a 20% increase in its footprint planned for the current year and an additional 20% in the next two years. Currently, Yokohama operates through about 2,800 dealers and runs a network of over 550 Yokohama Club Network (YCN) stores across India.
Source: Business Standard
Yokohama
India
Local Tire Production
Visakhapatnam Plant
Market Expansion
High-End Tires
SUV Demand
Make in India Initiative
Yokohama India CEO
Investment
Yokohama Rubber Company
Premium Car Tires
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