Yokohama India is accelerating its growth strategy in the country’s premium passenger vehicle segment, capitalizing on the rapid surge in SUV demand and a growing preference for higher-performance tyres. Managing Director and CEO Harinder Singh revealed that India has emerged as a key global market for the Japanese tyre maker, with the company doubling its replacement market presence over the past five years.
Manufacturing Push in Visakhapatnam
Central to Yokohama’s expansion strategy is its updated manufacturing hub in Visakhapatnam (Vizag). Following an initial investment phase, the facility’s passenger car radial tyre production capacity has expanded to 4.5 million units annually.
Designed as a high-value manufacturing facility rather than a high-volume base, the Vizag plant relies on heavy automation—including robotic tyre-building equipment, automated material handlers, and advanced quality inspection systems. These process improvements have boosted plant productivity by 15% to 25%.
Premiumization and SUV Trends
Driven by consumer preferences shifting toward larger vehicles, premium and high-performance tyres now account for roughly 25% of Yokohama India’s passenger car tyre sales. Key drivers include:
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Product Lineup: Heavy demand for the Geolandar SUV series and BluEarth-GT Max ranges alongside its core Earth-1 Max passenger car offerings.
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Larger Rim Sizes: The plant is equipped to manufacture tyres up to 24 inches, keeping pace with the market shift toward 16-inch and larger sizes.
Scaling Up OEM Partnerships
Historically reliant on the replacement (aftermarket) market, Yokohama aims to aggressively scale its Original Equipment Manufacturer (OEM) footprint. While Maruti Suzuki remains its primary Indian OEM customer—accounting for a low single-digit percentage of overall volume—the additional capacity at Vizag gives Yokohama the flexibility to boost OEM supply to a double-digit share within three to five years.
EV Preparedness and Heavy Localisation
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Electric Vehicles: While Yokohama already offers dedicated EV tyres globally under its E+ lineup, the company is conducting localized testing on Indian road conditions and weight dynamics before introducing specialized EV lines domestically.
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Supply Chain: Domestic sourcing has reached approximately 60%, insulating the brand against volatile raw material prices and global supply disruptions.
Sustainability and Market Expansion
The Vizag facility operates on a Zero Liquid Discharge (ZLD) model and integrates sustainable raw materials—such as rice husk ash silica, bio-based oils, and reclaimed rubber—into its manufacturing processes. Additionally, Yokohama is actively working on developing prototype tyres with 38% recycled content under its Extreme H motorsport project.
While urban centers currently generate 95% of Yokohama’s sales in India, the brand is actively expanding into Tier-2 and Tier-3 cities and building an export footprint targeting SAARC nations and selected African markets.
