Q. Yokohama's entry into the Indian market in 2007 and the journey so far. How has the company grown since then?
Ans: Yokohama India began operations in 2007 as a wholly-owned subsidiary of Yokohama Rubber Co. Ltd., initially importing tyres. In 2014, we established our first manufacturing unit in Bahadurgarh, Haryana, with an investment of INR 300 crore and an initial production capacity of less than 700,000 units per year. The COVID-19 pandemic brought challenges, but as markets reopened in 2020, we ramped up production, increasing the plant's capacity to 1.6 million units per annum. In February 2023, the plant surpassed the production milestone of 2.5 million tyres. To date, Yokohama India has invested around USD 154 million in the Bahadurgarh plant. Our journey since 2007 reflects significant growth and our commitment to high-quality products and services for the Indian market. We look forward to continuing our growth and innovation in the years to come.
Q. How has Yokohama India’s manufacturing operations contributed to the company's success?
Ans: Yokohama India's manufacturing operations have significantly contributed to the company's success by scaling up production capacity and meeting the rising local demand. With an investment of around US USD 82 million, Yokohama is expanding its passenger car tyre production in Visakhapatnam, aiming to increase annual capacity from 2.8 million to 4.5 million tyres by 2025. This expansion within the Off-Highway Plant premises will commence in the fourth quarter of 2024, supporting tyres up to 22 inches. The strategic investment reflects Yokohama's commitment to enhancing its manufacturing capabilities and market presence. The company has achieved a remarkable growth rate, with a 23% CAGR since 2020 and a 43% CAGR over the past two years, the highest in the industry. Moreover, Yokohama India's robust dealer network, comprising nearly 2,800 dealers and 600+ Yokohama Club Network (YCN) stores, underpins its market success. Plans to expand this footprint by 20% annually further demonstrate the company’s dedication to growth and customer satisfaction in India.
Q. By the end of 2024, what are Yokohama's strategic plans for expansion in terms of advanced manufacturing, production capacity, and investment?
Ans: By the end of 2024, Yokohama has strategic plans to significantly expand its manufacturing capabilities and production capacity in India. A key part of this strategy includes a substantial investment of around US USD 82 million to establish a new production unit in Visakhapatnam (Vizag). This new facility will be integrated within the existing Off-Highway Plant and will commence production in the fourth quarter of 2024. The expansion aims to boost the annual passenger car tyre production capacity from the current 2.8 million to 4.5 million tyres by 2025, accommodating tyres up to 22 inches. Additionally, Yokohama plans to further enhance its market presence through its robust dealer network. The company currently has nearly 2,800 dealers and over 600 Yokohama Club Network (YCN) stores. Strategic plans are in place to increase this footprint by 20% during the year and another 20% over the next two years. These investments and expansions underscore Yokohama’s commitment to advanced manufacturing, increased production capacity, and sustained market growth in India.
Q. How is Yokohama addressing the growing market of electric vehicles (EVs) and off-highway tyres with its innovative tyre technology?
Ans: Yokohama addresses the growing market of electric vehicles (EVs) with cutting-edge technology and robust R&D facilities in Japan. Our recent introduction of the proprietary "E+" marking in our flagship Advan range of tyres, highlights our commitment to electrified vehicles, ensuring our tyres meet the unique demands of passenger cars, trucks, and buses. We have introduced this in the Europe market and we can expect it in India in the near future. We supply original equipment tyres for premium EVs like the BMW iX3, Mercedes-AMG EQS 53 4MATIC+, and Lexus RZ, as well as crossover SUVs from Toyota (bZ4X) and Subaru (SOLTERRA), and mini-vehicles such as the Nissan Sakura. Incorporating feedback from EV manufacturers, we continuously develop replacement tyres and expand our product lineup. This innovation-driven approach allows us to enhance tyre performance and meet the evolving needs of the automotive industry, reinforcing our position as a leader in the dynamic market of electric vehicles.
Q. What types of tyres does Yokohama India offer and how do these products cater to different segments of the passenger car and SUV market?
Ans: Yokohama India offers a diverse range of tyres tailored to different segments of the passenger car and SUV market, holding an 8-9% market share in the Indian replacement market.
For passenger cars we have Earth-1 and BluEarth GT:
- Our Earth-1 tyre line is designed for passenger cars, featuring a special nano blend compound for extended lifespan and durability. These tyres ensure reliable performance and long-lasting use for city and highway driving.
- BluEarth –GT offers exceptional grip and handling, especially in wet conditions and enhances maneuverability. Its innovative noise-controlled pitch and aerodynamic technology helps to reduce air resistance, ensures balanced performance, comfort, and fuel efficiency, making it suitable for various vehicle types including sedans and premium hatchbacks.
For SUVs we have Geolandar and BluEarth RV02
- For SUV owners, our Geolandar tyre range is versatile, built to conquer both on and off-road environments. Geolandar tyres are crafted for exceptional durability and feature advanced safety elements for demanding terrains, making them ideal for navigating urban streets and rugged landscapes. Our Bahadurgarh plant manufactures passenger car tyres ranging from 13 to 19 inches, meeting a wide market demand and significantly contributing to our sales volume.
- Our BluEarth RV-02 range ensures safety and comfort with exceptional wet performance, superior handling, and advanced noise-reduction technology. It gives you the experience of a smooth, quiet, and fuel-efficient drive even on the slickest roads. It is specifically designed for CUVs (Crossover Utility Vehicles) and MPVs (Multi-Purpose Vehicles).
Q. What are Yokohama's market ambitions for the next five years?
Ans: Yokohama India's market ambitions for the next five years focus on strengthening its position in both the replacement market and the OEM sector. With an 8 percent share in the replacement market, Yokohama aims to enhance its brand presence and customer acceptance. Globally, Yokohama Tyres partners with renowned car manufacturers like Audi, Honda, Mercedes Benz, Mitsubishi, Nissan, Porsche, and Suzuki. In India, Maruti Suzuki is the main OEM customer, with a history of supplying tyres to German premium brands. Looking ahead, Yokohama India plans to meet OEM demands by producing high-quality tyres tailored to specific vehicle models, particularly through its Vizag unit. This strategic expansion to include premium and larger tyres aligns with evolving customer preferences and rising demand in the Indian market. By focusing on these areas, Yokohama India aims to solidify its market position and drive growth, ensuring it remains a key player in the Indian tyre industry.
Q. How is Yokohama India working towards sustainable manufacturing and reducing its environmental footprint across its operations?
Ans: Yokohama places a strong emphasis on sustainability and benefits from the technologies developed by the group's R&D in Japan. Collaborating closely with the R&D facility in Japan allows Yokohama India to leverage global product expertise and adapt it for specific applications in India. The involvement of the parent group's R&D facility in Japan has been instrumental in tailoring products like the Earth-1 tyre for Indian conditions. This highlights Yokohama's commitment to developing sustainable solutions that meet the specific requirements of the Indian market. This collaborative approach ensures that Yokohama India's products align with global sustainability standards while catering to the specific needs and operating conditions of the Indian market. By combining local expertise with global R&D capabilities, Yokohama India can deliver sustainable and high-performance tyre solutions to its customers in India.
Q. What training programs/initiatives Yokohama is taking up for gender diversity?
Ans: The Yokohama Group in India is deeply committed to promoting a culture of diversity, inclusion, and equal opportunity for all employees. We recently celebrated a significant milestone, with 1,000 women proudly working on our factory shop floors across our four plants. Our journey started in 2018 with the launch of our first women recruitment drive for the Truck Bus Radial (TBR) Unit at our Dahej plant. We led the way in creating a TBR Unit managed entirely by women. These talented women have excelled in roles ranging from machinery operation to quality control, showcasing their skill, resilience, and dedication to excellence. Their strict adherence to safety protocols, achieving zero loss-time injuries, and active engagement in continuous improvement initiatives have motivated us to increase female representation on the shop floor. Dispelling the notion that only women from metropolitan areas pursue unconventional careers, our workforce of over 1,000 women hails from small towns across Chhattisgarh, Jharkhand, Kerala, Madhya Pradesh, Rajasthan, Odisha, Punjab, and beyond. They shine in diverse roles, including production, quality control, and logistics, serving as machine operators, team leaders, technicians, and supervisors. Yokohama in India has empowered women through focused recruitment efforts, extensive training programs, and strong support systems, enabling them to excel in various capacities within our manufacturing operations.
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