Yokohama Bets on SUV Boom to Grow India's Premium Tyre Market

Yokohama India is expanding its presence in the country's premium passenger vehicle tyre market as rising demand for SUVs and higher-performance vehicles continues to reshape consumer preferences. The Japanese tyre manufacturer is focusing on capacity expansion, greater localisation and stronger partnerships with original equipment manufacturers (OEMs) as part of its long-term growth strategy. Company officials say India has emerged as one of Yokohama's key global markets, with sustained growth in the premium replacement tyre segment over the past several years.

Speaking about the company's outlook, Yokohama India CEO and Managing Director Harinder Singh said the firm sees significant opportunities in India's growing premium passenger vehicle market. He noted that Yokohama has more than doubled its position in the passenger vehicle replacement market over the last five years and now holds a double-digit market share in the segment. According to Singh, the company's strategy remains centred on premium products, expanding its retail network and strengthening relationships with vehicle manufacturers.

A major part of Yokohama's expansion strategy is its upgraded manufacturing facility in Visakhapatnam. Following a recent capacity enhancement, the plant can now produce approximately 4.5 million passenger car radial tyres annually. The facility is expected to meet increasing domestic demand while also supporting future export opportunities. Rather than focusing solely on production volumes, the company aims to position the plant as a high-value manufacturing hub catering primarily to premium passenger cars and sport utility vehicles.

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The Visakhapatnam facility incorporates advanced manufacturing technologies, including robotic tyre-building systems, automated material handling and sophisticated quality inspection processes. According to the company, these technological upgrades have improved productivity by between 15 and 25 per cent while enabling the plant to maintain manufacturing standards comparable with Yokohama's global facilities. The investment also reflects the company's emphasis on efficiency, product quality and consistent manufacturing performance.

The growing popularity of SUVs in India has played a key role in Yokohama's product strategy. As consumers increasingly choose larger and more premium vehicles, demand for high-performance tyres with improved durability, grip and driving comfort has also increased. The company believes this shift presents a significant opportunity to expand its presence in both the replacement market and the original equipment segment by supplying tyres tailored to evolving customer expectations.

Looking ahead, Yokohama plans to continue investing in manufacturing capacity, localisation and premium product development to strengthen its position in India's competitive tyre industry. With the country's passenger vehicle market continuing to grow and SUVs accounting for an increasing share of sales, the company expects sustained demand for premium tyres. Its strategy combines advanced manufacturing, technological innovation and a stronger domestic presence to support long-term growth in one of its fastest-growing international markets.

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