TL;DR
Yokohama India is expanding its retail presence into tier-2 and tier-3 cities, driven by SUV demand and investments in manufacturing, while confirming its current tyres are largely EV-compatible.
Yokohama India is embarking on a strategic expansion plan for 2026, aiming to significantly strengthen its retail footprint in tier-2 and tier-3 cities across the country. Currently, the company's urban sales constitute 95% of its revenue, highlighting a considerable opportunity for growth in semi-urban and rural areas.
The tyre manufacturer is leveraging the rising demand for SUVs and larger tyre sizes (16-inch and above), which now account for over 40% of its sales. Harinder Singh, CEO and Managing Director of Yokohama India, emphasized the company's investment of over ₹1,000 crore in FY25, including commissioning a highly automated Vizag plant that has boosted efficiency by 15-25% through robotics and AI. Additionally, Yokohama India plans to introduce its Geolandar SUV tyre range in more mass-premium segments, starting with the aftermarket. While EV-specific tyre demand in the aftermarket is still nascent, the company notes that most of its existing tyres are already EV-compatible, positioning it well for the evolving electric vehicle market.
