Yokohama bets $100 mn on India’s SUV tyre boom

Yokohama is planning to invest approximately USD 100 million (around Rs 950 crore) in India over the next 1-3 years, as the company sees a growing demand for SUV tyres due to increased passenger car sales, particularly after GST reforms in September last year. The company's official, Nitin Mantri, revealed that Yokohama India plans to expand its capacity from 4.5 million tyres to 6.3 million tyres by putting this investment into place.

Yokohama India currently operates in Visakhapatnam (Andhra Pradesh) and Bahadurgarh (Haryana), with a yearly production capacity of 4.5 million tyres. The company has already invested around Rs 2,000 crore in the PCR segment between these two plants. Mantri mentioned that the company's primary focus has been on the aftermarket market, which has grown at roughly 14-15% faster than the industry in recent years.

However, with the surge in the passenger car sector post-GST reforms, the company anticipates a significant rise in demand for SUV tyres. The new GEOLANDAR X-CV range, designed for crossover and premium SUVs, boasts 32 planned sizes and is compatible with electric vehicles, ensuring durability, extended tyre life, and refined driving performance.

Yokohama India's Managing Director and CEO, Harinder Singh, emphasized that the launch of GEOLANDAR X-CV solidifies the company's commitment to delivering globally innovative solutions to Indian customers and strengthens Yokohama India's position as a leading premium tyre manufacturer in the country.