Yokohama India’s premium shift: ₹1,500-crore investment backs SUVs, exports and OEM push

For Yokohama India Pvt. Ltd., India is no longer just a growth market—it is steadily becoming a strategic pillar in its global playbook. Backed by an investment of nearly ₹1,500 crore, the company has almost doubled its production capacity to 4.5 million tyres annually, while aligning itself with the country’s premiumisation wave.

“India today is the fourth-largest market for Yokohama globally. Given the scale and potential here, it is strategically very important for us,” says Harinder Singh Jaidka.

The investment has been split evenly between a greenfield facility in Visakhapatnam and the expansion of its Bahadurgarh plant. The Japanese tyremaker has also built capabilities to manufacture tyres up to 24 inches, anticipating a shift towards high-performance and larger vehicles.

Capacity scale-up aligned with premium demand

This capacity expansion is not merely about volume but about staying ahead of demand trends. As SUVs continue to dominate India’s passenger vehicle market, the shift towards larger and more premium tyres is becoming more pronounced.

“The capacity has been built not only for current demand but also future requirements,” Jaidka says.

Yokohama is leveraging this trend through its Geolandar range, which has gained strong traction in the SUV segment. “Geolandar has become a cult brand in the SUV space in India, and we are expanding it further,” he adds.

At the same time, the company is maintaining a disciplined capital approach. Having recently completed its investment cycle, the focus now is on sweating existing assets. “We will optimise current capacity, and as demand builds, we will be ready to invest further,” Jaidka notes.

Aftermarket stronghold, gradual OEM pivot

Despite its premium ambitions, Yokohama’s India business remains heavily skewed towards the replacement market, which accounts for roughly 95% of sales. The next phase of growth, however, will be driven by OEM partnerships.

“OEM is our next line of focus. We are in single digits today, but we aim to move to around 15% over time,” says Jaidka.

The company currently supplies to Maruti Suzuki and is targeting deeper engagement with Japanese and domestic automakers.

Exports are also gaining traction, though in a measured manner. Yokohama currently caters to SAARC and African markets, primarily in the aftermarket segment. “Our approach is to consolidate these regions first before expanding further,” Jaidka explains. He adds that Indian plants are built to meet stringent global standards, positioning them as potential export hubs over time.

EV readiness, cost pressures and a focused play

While electric mobility is gathering pace, Yokohama is adopting a calibrated approach in India. The company already has EV-specific tyre technology globally and is prepared to introduce it when demand matures.

“The products are ready, and our facilities here are fully capable. It depends on how the market evolves,” Jaidka says.

Geopolitical uncertainties have had limited direct impact on operations due to strong localisation, but input costs remain a concern. “Nearly 40% of tyre components are linked to crude derivatives, so any increase has a cascading effect,” he points out.

For now, Yokohama remains firmly focused on the passenger car segment, even as its global group caters to off-highway and commercial tyres through separate entities. The broader strategy is clear: consolidate gains, deepen its premium positioning, and expand in a calibrated manner in one of its most important global markets.