Retread tyres in Malaysia are unfairly blamed for road accidents. While the tyres enjoy a pristine reputation in export markets, the notoriety within the local market stems from the lack of ability to differentiate them from low-cost and low-quality tyres that fail to comply with performance standards owing to overloading, maintenance and misapplication.

A total of 1.35 million lives are lost each year in road accidents, according to data from the Ministry of Transport Malaysia. Another data set from Statista highlighted that the South Asian country witnessed 545,000 road accidents in 2022, an increase from the previous year data of 370,000.

A large portion of these accidents involve commercial vehicles and the blame is also shared by retread tyres. A recent news report highlighted rising concerns within the Malaysian parliament to ban the use of retread tyres of commercial vehicles citing safety norms.

The situation seems ironic as the Malaysian retread industry enjoys a pristine reputation in export markets. Yet, the notoriety of retread tyres on home turf might be seen as ‘collateral damage’.

Speaking to Tyre Trends exclusively on why retread tyres remain a scapegoat for road accidents, Tyre Retreading Manufacturers Association of Malaysia (TRMAM) President Edmund Wong said, “Retread tyres are often unfairly blamed for road accidents because the public struggles to differentiate them from low-cost, low-quality tyres that fail due to poor maintenance, overloading and misapplication. Many people mistakenly associate tyre debris, especially when it reveals exposed steel cords, with retreads. However, this type of failure is more commonly linked to cheap, substandard tyres rather than retreads, which, when properly maintained and used correctly, can be as safe as new tyres. The focus on retreads allows the real issues such as inadequate tyres maintenance and overloading to remain overlooked.”

IMPROVING ROAD SAFETY

Malaysia has a higher road fatality rate compared to ASEAN peers like Singapore, largely due to motorcycle-related deaths, which make up over 65 percent of fatalities.

Malaysia’s road safety goals have reportedly fallen short despite setting out clear targets. In 2014, the government aspired to reduce road fatalities by 50 percent by 2020 as part of its alignment with United Nations’ Decade of Action for Road Safety 2011-2020. The initiative was a failure and the same target was reiterated in Malaysia Road Safety Plan 2022-2030.

Current figures also raise questions over the supposed success of the target. Commenting on ways that could make the reduction target a reality, Wong noted, “To reduce road fatalities by 50 percent by 2030, Malaysia should enforce traffic laws strictly, including penalties for speeding and disobeying traffic lights, while expanding automated systems like speed and red-light cameras. Enhancing road infrastructure with safety audits, smart technology and dedicated motorcycle lanes is essential.”

“Malaysia can adopt best practices, such as dedicated motorcycle lanes, public education campaigns and improved road infrastructure, while learning from Singapore’s success in enforcement, infrastructure and safety culture. Public awareness campaigns should target risky behaviours including running red lights and promote defensive driving. Protecting vulnerable road users, especially motorcyclists and pedestrians, through improved infrastructure and safety regulations is also crucial,” he added.

Alluding to why stringent safety campaigns or regulatory measures are not undertaken to reduce motorbike fatalities, he noted, “The lack of stringent safety campaigns or regulatory measures targeting motorbike users in Malaysia is due to several factors. Firstly, motorbikes are a vital mode of transport for many due to affordability and accessibility, especially in rural areas, making stricter regulations politically sensitive. Secondly, enforcement of existing laws such as helmet use and licensing is inconsistent, particularly in rural regions, allowing unsafe practices to persist. Thirdly, cultural factors like risk-taking behaviour, resistance to change and low awareness of safety risks hinder the adoption of safer practices. Lastly, limited resources, both financial and infrastructural, result in insufficient investment in targeted campaigns and dedicated motorcycle lanes, leaving riders vulnerable.”

CLOSING GAPS

Wong iterated that to improve road safety and support the retreading industry in Malaysia, several regulatory gaps and enforcement lapses need to be addressed. One significant issue is the inconsistent enforcement of tyre standards, especially for imported new tyres.

While Malaysia requires that imported tyres have certifications like the E-mark, DOT or MS, these standards can sometimes fail to verify the genuineness and reliability of the tyres, leading to concerns about the quality and safety of some imports. This lack of stringent checks on tyres authenticity puts road users at risk and undermines confidence in tyre safety.

Additionally, there is a gap in regulations requiring regular tyre maintenance checks, particularly for retread tyres. Without mandatory inspections for tread depth, pressure and overall tyre condition, vehicles, especially commercial fleets, are at higher risk of tyre-related accidents.

Another issue is the weak enforcement of penalties for overloading and the misapplication of tyres such as using retreads in unsuitable conditions. Overloading vehicles puts excessive stress on tyres, increasing the likelihood of tyre failure, and stricter penalties are needed to deter this dangerous practice.

There is limited education on the benefits of retreads and how to use them safely, which affects their acceptance and proper usage. Implementing campaigns that highlight the safety, environmental and economic benefits of retreads could help improve perceptions and encourage safer practices.

Moreover, government procurement policies should prioritise retread tyres for public transportation fleets, encouraging their use across sectors and providing a market boost to the retreading industry.

Lastly, there is a lack of clear regulations on tyre end-of-life management including guidelines for recycling and disposal. Establishing clear regulations for the responsible management of worn-out tyre, including retreads, would support the circular economy and further promote the sustainability of the retreading industry.

Addressing these regulatory gaps and enforcement lapses would not only improve road safety but also foster the growth of a reliable, safe and sustainable retreading industry in Malaysia.

REPUTATION REVIVAL

The shadow of malignance over the local retread industry is daunting, especially considering its stellar reputation abroad. A methodical plan is urgently needed to change the prevailing perception.

Commenting on how the industry can leverage its foreign reputation to promote retreads domestically, Wong explained, “Malaysia can leverage its reputation in the global retreading industry to promote retreads domestically by focusing on education, policy support and sustainability initiatives.”

“Firstly, educating the public about the benefits of retreads, such as safety, environmental advantages and cost-effectiveness, can shift perceptions. Secondly, incentivising businesses to adopt retread tyres would not only increase its usage but also align with sustainability practices. Retreads significantly reduce waste by reusing tyre casings, contributing to lower carbon footprints and less landfill waste. Offering tax breaks, rebates or financial incentives to businesses that adopt retreads can encourage the adoption of this eco-friendly practice, benefiting both companies and the environment,” he added.

He also noted that Malaysia has a well-established certification system with Malaysian Standard 224 (MS 224), which sets high-quality standards for retread tyres. This national standard ensures that domestically produced retreads meet rigorous safety and quality requirements, reinforcing consumer confidence and helping local manufacturers maintain global competitiveness. By promoting this certification and its benefits, Malaysia can further build trust in its retreading industry and drive domestic demand for high-quality retreads.

He also noted that partnerships with universities, research institutions and organisations such as the Malaysian Rubber Board (MRB) could play a pivotal role in establishing Malaysia as a hub for innovation in tyre retreading. These collaborations would enable research and development focused on improving the quality, safety and efficiency of retread tyre, which could enhance their appeal domestically and internationally.

“The Malaysian Rubber Board has extensive expertise in rubber technology and the development of new rubber compounds, which are crucial for retreading. By working with these organisations, Malaysia could explore advanced rubber materials and improve the durability and performance of retread tyres. MRB’s research could focus on optimising the rubber used in tyre retreading, enhancing its resilience and performance under various road conditions, thus improving the overall safety of retreads. Universities and research institutions bring additional expertise in materials science, engineering and sustainability and can help address any technical gaps in the retreading process. They could collaborate with retreading companies, fleet operators and tyre manufacturers to develop new retreading technologies, better tyre monitoring systems and more efficient processes,” explained Wong.

He added, “These partnerships could also produce credible, science-backed data on the reliability and safety of retread tyre, helping to build public trust and dispel misconceptions about retreads.”

FILLING DATA GAPS

The lack of local data to validate the reliability and safety of both retread and new tyres in Malaysia stems from several key factors, according to Wong.

“Primarily, there is a significant gap in research due to the lack of collaboration between tyre manufacturers, retreaders, fleet operators, research institutions and government agencies. Without cooperation among these stakeholders, there is little incentive or infrastructure to collect and analyse tyre failure data in the local context. This leads to a situation where tyre failure research is outdated or non-existent, leaving the industry to rely on studies from other countries such as US, which may be many years old and not reflective of current tyre technology or local conditions,” noted Wong.

He added, “This problem is not unique to Malaysia; many countries face similar challenges in gathering and sharing tyre-related data. For example, tyre debris reports and studies on tyre failures tend to be infrequent and may not accurately capture the complexities of modern tyre usage, road conditions or fleet operations. To address this gap, a collaborative effort among different stakeholders, both local and international, could be instrumental.”

Collaborations could fund and conduct comprehensive studies on tyres performance under local conditions. By sharing data and expertise, these stakeholders can develop a more accurate understanding of the causes of tyre failures, improve maintenance practices and promote better safety standards for both new and retread tyres.

Additionally, international partnerships could allow for access to global tyre failure databases and new research, enabling Malaysia to adopt best practices from countries like US, Japan or the EU, where more tyre safety research is available.

Establishing a framework for ongoing research and data sharing with regular updates and reports would help fill the data gap and improve tyre safety standards locally. This collaborative approach could ultimately lead to the development of localised tyre safety standards, improved regulations and more informed decision-making by all stakeholders involved.

NEW LEARNING

According to Wong, Malaysia can learn important lessons from countries like Japan and UK, where retread tyres are promoted effectively for their cost-efficiency and environmental benefits. Both Japan and the UK have robust local manufacturing industries for new, high-quality tyres, which ensure a consistent supply of durable tyre casings for retreading.

This industrial advantage helps protect the respective retreading industries by ensuring the availability of reliable casings that meet safety and performance requirements. Japan enforces stringent standards for both new and retread tyres through the Japanese Industrial Standards (JIS) such as JIS D 4202, which defines specifications for automobile tyres. These regulations ensure high-quality tyre production and maintenance, supporting a thriving retreading ecosystem.

Similarly, UK relies on the ‘E’ mark certification system, which aligns with European safety and performance regulations. The ‘E’ mark, prominently displayed on compliant tyres, indicates that a tyre has undergone rigorous testing and meets safety standards. This harmonised approach in UK ensures that only certified-quality tyres are used, reducing risks and building trust in retread tyres.

In Malaysia, the absence of a local new tyre manufacturing industry for trucks presents a challenge. The reliance on imported new tyres, coupled with the fact that Malaysia’s new tyre standard (MS 1394) is not compulsory, allows low-cost and lower-quality imports to flood the market.

These tyres often produce casings unsuitable for retreading, which undermines the retreading industry. To address these issues, Malaysia could make MS 1394 mandatory for new tyres, ensuring better-quality casings and fostering trust in retreads.

Additionally, promoting awareness of retreads’ economic and environmental benefits, strengthening enforcement of Malaysian Standard 224 (MS 224) for retread quality and offering incentives for their adoption could help the industry grow.

Technology, such as tyre monitoring systems, can play a significant role in addressing concerns about retread tyres and improving road safety. These systems provide real-time data on tyre pressure, temperature, tread depth and overall tyre health, helping to ensure that all tyres, including retreads, are properly maintained.

By monitoring tyre performance, these systems can detect early signs of wear, overloading or misapplication, reducing the risk of tyre failure. This not only enhances the safety of retread tyre but also helps prevent accidents caused by poor tyre maintenance or low-quality tyres, leading to a change in perception.

JK Tyre & Industries is targeting double-digit growth in FY2027, supported by healthy commercial vehicle demand, sustained OEM traction and a growing market for premium passenger car tyres. However, rising raw material costs and elevated freight rates continue to pressure margins, prompting the company to pursue further price increases and operational efficiencies.

Anshuman Singhania, Managing Director, JK Tyre & Industries, expects demand to remain stable through the second half of FY2027, with commercial vehicle tyre sales projected to record double-digit growth for the full year. While passenger vehicle demand could moderate slightly, healthy OEM order books and replacement market traction are expected to support the industry's growth momentum.

“We are very optimistic going ahead that demand would be quite stable,” Singhania said during the post-results media interaction, adding that the positive momentum was expected to continue through the third and fourth quarters.

Record Revenue in Q2 FY2027

JK Tyre reported its highest-ever consolidated quarterly revenue of INR 48.5 billion in Q2 FY2027, up 20 percent year-on-year (YoY). Consolidated EBITDA rose 28 percent sequentially to INR 3.43 billion, with an EBITDA margin of 7.1 percent. Profit after tax stood at INR 600 million.

Domestic sales grew 32 percent YoY, led by a 65 percent increase in OEM sales following the implementation of GST 2.0. Exports also gained momentum, rising 14 percent sequentially despite geopolitical uncertainties and challenging international market conditions.

Growth was broad-based across product segments. OEM volumes increased 76 percent in truck and bus radial (TBR) tyres and 35 percent in passenger car radial (PCR) tyres. The tubeless tyre portfolio grew 25 percent YoY, against estimated industry growth of 10 percent, while tipper tyre sales increased 20 percent compared with industry growth of 11–12 percent.

Sales in the two- and three-wheeler category rose approximately 85 percent YoY, driven primarily by scooters. Replacement sales increased 20 percent, reflecting continued traction across channels.

Despite the revenue growth, profitability remains under pressure as input and logistics costs rise faster than they can be recovered through pricing.

Raw Material Costs and Freight Weigh on Margins

JK Tyre's raw material basket increased approximately 9 percent sequentially in Q2, with the cumulative increase over the preceding six months estimated at around 30 percent. Singhania expects a further 4–5 percent increase in the basket during Q3.

Elevated container freight rates have added to the pressure, with increases across geographies affecting exports and shipments from India. Higher petrol and diesel prices have also contributed to rising logistics costs.

The company is seeking to offset these pressures through price increases, manufacturing efficiencies and a richer product mix. However, the timing of margin recovery will depend on the extent to which higher costs can be passed on in a price-sensitive market.

Further Price Hikes Planned

JK Tyre increased prices by approximately 4–5 percent in Q1 and a further 7 percent sequentially in Q2, taking the cumulative increase during the first half of FY2027 to around 11–12 percent. The company intends to implement another 4–5 percent increase in Q3, subject to market conditions.

“The raw material increase is putting a lot of pressure on margins. But we are steadily increasing our prices to pass through,” Singhania said.

OEM pricing is partly linked to input cost indices, allowing some increases to be recovered through contractual adjustments. In the replacement market, price increases have been implemented more gradually over the past two quarters, with further adjustments expected.

Singhania acknowledged that the industry typically experiences a lag between cost escalation and full price recovery. While the company expects margins to improve through better OEM mix, price indexation and operational efficiencies, it has not quantified the anticipated improvement.

Premium Tyres Gain Share

JK Tyre is increasing its focus on premium passenger car tyres, particularly those with rim sizes of 16 inches and above. The company said the share of these tyres in its passenger car OEM mix increased to approximately 40 percent in H1 FY2027, compared with 35 percent in FY2026. These sizes account for around 27 percent of its overall mix, including the aftermarket.

The shift towards larger rim sizes is being supported by new vehicle launches and wider adoption across passenger vehicle categories. JK Tyre has secured 10 OEM approvals during the year, eight of which involve models in the 16-inch-and-above category. These include the Maruti Suzuki Brezza, Mahindra Thar, Renault Duster and Tecton, and MG Tomahawk, as cited during the media interaction.

“The market is growing, but our market is growing at a faster rate,” Singhania said, highlighting the opportunity presented by new OEM programmes and rising demand for larger rim sizes.

The company expects this segment to support product realisation and improve its sales mix, with additional capacity helping it meet evolving OEM requirements.

Expansion Continues as Exports Offer Headroom

JK Tyre is proceeding with its INR 11.3 billion capacity expansion programme, which Singhania confirmed would not be deferred. The previously announced INR 50 billion capital expenditure programme is also progressing through its initial phase.

The investments are intended to support domestic demand and create capacity for export opportunities. JK Tyre reported encouraging demand from Latin America and Africa, while some markets in Asia and Europe softened amid geopolitical uncertainty.

The company plans to continue serving established markets across Latin America, the Middle East, Southeast Asia and Africa, alongside a limited presence in Europe, while prioritising domestic OEM and replacement requirements.

For the second half of FY2027, JK Tyre expects commercial vehicle demand to remain supportive and is targeting double-digit growth in the segment for the full year. Strong OEM order books, replacement demand and the increasing contribution of premium tyres are expected to underpin growth. The key challenge will be translating higher volumes into sustainable profitability as the company navigates raw material inflation, freight costs and the lag in price recovery.

American Tire Distributors (ATD), a leading independent supplier in the replacement tyre industry, has appointed Michael Broderick as Interim President, effective immediately. He takes over from Ira B Silver. ATD also announced that the company and Silver have parted ways.

Broderick, who currently sits on ATD's Board of Directors and brings extensive automotive aftermarket experience, will guide the leadership transition. Meanwhile, the Board is conducting a comprehensive search for a permanent Chief Executive Officer, evaluating both internal and external candidates.

ATD continues to hold a significant position in the North American tyre market, supported by a broad distribution network, longstanding customer relationships and a diverse portfolio of manufacturer and proprietary brands. During 2026, the company eliminated more than USD 170 million in structural costs, reinvesting a portion of the savings, while shareholders have backed further investment in the national distribution network to strengthen market position and operating performance.

Philippe Gilbert, Chairman of the Board of Directors of ATD, said, “ATD has made important progress sharpening our focus on our core tyre distribution business, improving operational efficiency and delivering outstanding service and value to our customers and partners. As we look to accelerate these efforts, we determined that now is the right time to initiate a leadership transition. Mike brings substantial experience leading complex automotive businesses, and we are pleased that he is stepping in as Interim President to help us during this transition period. He will be supported by the ATD management team, which has played a central role in the Company's operational transformation, providing continuity of leadership across its distribution operations and strategic initiatives. On behalf of the Board, I would like to thank Ira for his leadership and contributions to help move the Company forward during a critical time.”

Broderick said, “I’m excited to step in and work alongside ATD’s team of talented associates as we focus on enhancing our network to provide customers with high-quality products and unparalleled service. As a member of ATD’s Board and over a decade of working with ATD as a customer, I’ve witnessed firsthand the strength of the Company’s robust national distribution network, deep customer and manufacturer relationships and long-held commitment to exceptional service. I look forward to advancing our efforts to strengthen our core tyre distribution business and build a stronger, more efficient company.”

Yokohama India plans to enter the two-wheeler tyre market for the first time, with the first set of products due by the end of next year — making India the first country globally to get two-wheeler tyres from the Japanese tyremaker. The move, confirmed by Managing Director and CEO Harinder Singh, coincides with the launch of the GEOLANDAR X-CV range, extending Yokohama’s flagship SUV tyre technology to smaller wheel sizes for India’s booming crossover segment.

India’s premium tyre market continues to reward companies that combine global technology with local agility. Yokohama India, already one of the country’s fastest-growing premium players, looks to tap into India’s SUV and premiumisation push, bringing global products but in a customised avatar for the domestic market.

On the other hand, India is set to become the first country in the world for Yokohama, where it will introduce two-wheeler tyres.

In an interaction with Tyre Trends, Harinder Singh, Managing Director and CEO, Yokohama India, confirmed that the company is actively working towards entering the two-wheeler tyre segment, with the first products targeted for launch by the end of next year.

“The move will require fresh capital investment and will initially focus on the premium category before expanding into mass-market offerings, along with supporting the growing Yokohama Club Network,” revealed Singh.

This development sits alongside the recent unveiling of the GEOLANDAR X-CV range, a significant extension of Yokohama’s global flagship SUV technology into India’s rapidly expanding crossover and premium SUV segment.

TWO-WHEELER ENTRY SIGNALS BROADER AMBITION

Responding to a query on the company’s plans to address the whitespace in its portfolio, Singh said, “We are actively looking to support the two-wheeler business. By the end of next year, hopefully we should be having the two-wheeler tyres also.”

It is important to note that at present Yokohama India has zero presence in the two-wheeler space. The initial thought is to begin with tyres in the premium segment and then ‘take a trickle in’ towards mass-market products.

“This is primarily to service and support our all Yokohama club networks. And we plan to sell through them. That’s the objective,” said Singh.

The decision reflects both opportunity and necessity. India’s two-wheeler market remains vast and premium tyres are gaining share as riders seek better handling, durability and safety. By channelling the new products through its branded retail network, Yokohama intends to maintain the premium experience that has defined its passenger-car strategy.

GEOLANDAR X-CV BRINGS FLAGSHIP TECHNOLOGY TO A WIDER AUDIENCE

The immediate focus, however, remains the passenger-car radial business and the newly launched GEOLANDAR X-CV. Originally engineered for luxury SUVs with wheel sizes above 18 inches, the technology has been extended downwards to 16 inches, creating what the company describes as India’s most extensive dedicated tyre range for crossover and premium SUVs. Yokohama India has planned around multiple variations spanning 16 to 20 inches.

The tyre incorporates Micro Silica technology for enhanced wet-road grip and reduced rolling resistance, an optimised asymmetric tread design with specialised inner and outer shoulder blocks, four wide circumferential grooves for water evacuation, proprietary 2D–3D Combination Sipes for improved wet traction and even wear and 5-Pitch Variation Technology to minimise pattern noise.

It uses reinforced two-ply sidewall construction and a full nylon cover to deliver durability and high-speed stability required for Indian conditions. Critically, the range is EV-compatible, engineered to handle higher vehicle weights and the instant torque characteristics of electric vehicles while remaining equally effective on internal-combustion and hybrid platforms.

Nitin Mantri, Member of the Board and Senior Managing Officer & Co-COO of Yokohama Rubber Co and Chairman of Yokohama India, framed the launch in strategic terms: “India continues to be one of Yokohama’s most strategic markets globally. Our continued investments in manufacturing, technology and premium product development reflects our confidence in the country’s long-term growth. The launch of GEOLANDAR X-CV reinforces our commitment to bringing globally proven innovations closer to Indian customers while strengthening Yokohama India’s position as one of the country’s leading premium tyre manufacturers.”

Singh added: “The crossover SUV segment is growing rapidly and the road infrastructure improving, now motorists are seeking a balance of safety, comfort, quietness and long-lasting performance. With the GEOLANDAR X-CV, we’re bringing flagship premium tyre technology to delight a wider base of crossover SUV owners.”

CAPACITY RUNNING NEAR FULL, EXPANSION ALREADY MAPPED

Yokohama India’s current installed capacity stands at approximately 4.5 million units a year. The capacity utilisation is already high. “We are almost full,” Singh noted.

Of the 4.5 million, roughly four million tyres serve the domestic aftermarket, with the modest surplus supporting European export requirements of the parent company. The Vizag plant has been designed with further phases in mind. “The plant is ready to be going for the next phase also. So as and when the requirement is, we will expand it,” averred Singh without giving out exact details.

Mantri elaborated on the flexible manufacturing philosophy. Buildings and long-lead equipment are already in place; additional machines will be added incrementally as demand thresholds are crossed.

The existing footprint can take capacity from 4.5 million to 6.3 million units. Beyond that, the parent company has demonstrated consistent willingness to invest. Cumulative investment in India across the Yokohama Group is already substantial, with the Vizag facility alone accounting for more than INR 30 billion in recent years and overall group investment estimated in the range of USD 700–800 million. An Odisha plant focused on off-the-road tyres is also under construction.

AFTERMARKET REMAINS THE CORE, BUT OEM SHARE IS SET TO RISE

For Yokohama India, aftermarket sales in the passenger vehicle segment still account for around 95 percent of its revenue. The company has roughly 3,000 channel partners and aims to reach 4,500 within three to four years, with particular emphasis on Tier-3 and Tier-4 towns.

A key pillar is the Yokohama Club Network of branded retail stores that deliver a premium customer experience, including a five-year worry-free warranty. “In tyre industry, you know, 80–85 percent of the customers sale happens with the influence of the channel partner. When a customer walks into those stores, he gets that premium experience,” noted Singh.

At present, for Yokohama India, the passenger vehicle OEM business contributes only about two percent, limited largely to Maruti Suzuki India. The roadmap is to raise this to 10 percent within five years, and potentially towards 10–20 percent over a longer horizon. “Indian OEMs are going to be an important part in our OE strategy,” Singh confirmed.

Adding to that, Mantri said that OEM development cycles are lengthy, typically three to four years, but multiple proposals are already under discussion. “Working hand in hand with OEMs allows us to be kind of even more successful than we are as we go forward,” he said.

LOCAL OWNERSHIP MEETS GLOBAL STANDARDS

One of Yokohama India’s distinctive features is the degree of local management autonomy. “India was the first place where Yokohama gave complete ownership to the local management. There was no Japanese chairman,” Mantri explained.

The experiment, begun in 2020, has married Japanese technology and quality culture with ‘Indian Jugaad, Indian innovation, Indian kind of hunger for growth’. The result, he said, has been ‘a wonderful recipe’.

Product strategy follows a similar hybrid logic. The Earth-1 range was designed specifically for India. Newer products such as the GEOLANDAR X-CV start from global platforms but are tuned in compound and construction for Indian roads and driving conditions.

Replying on the company’s localisation levels, Mantri said that “sourcing remains pragmatic. Yokohama seeks the highest quality at the best price, whether from India or Southeast Asia, rather than pursuing localisation for its own sake.”

Growth over the past five years has averaged 18 percent CAGR, a momentum the leadership is determined to sustain. Market share in the premium passenger-car radial segment is estimated at around 10 percent. The company continues to prioritise 16-inch and larger sizes while systematically filling remaining white spaces in the portfolio.

LOOKING BEYOND THE IMMEDIATE HORIZON

It is no secret that when it comes to digitalisation, consumers in India are exposed and are amongst the fastest adopters of the latest trends, be it product-as-a-service, online purchase or service on hire.

Many quick commerce platforms and tyre makers have taken the online route to directly engage and sell their products to the end-consumer, but for Yokohama India, online tyre sale holds little appeal.

“We are not into online business. That’s a no from our side,” Singh clarified. The preference remains for customers to experience the product and fitting process in a branded store. Marketing support is deliberately hyperlocal and digital rather than big-ticket sporting sponsorships.

As road infrastructure improves and motorists undertake longer journeys, demand is shifting towards on-road focused tyres, a trend the GEOLANDAR X-CV is positioned to capture. All-terrain products will continue for genuine off-road use, but the volume opportunity lies in the growing crossover segment. Continuous upgrades across the rest of the portfolio, including further evolution of the Earth-1 range, are already planned.

For Yokohama India, the strategy is clear – offer the best experience to Indian consumers, by introducing its globally proven products to the market without compromises, but yet in an Indian avatar. On the other hand, the company is also gearing up to enter new segment to further cater to customers in the premium two-wheeler space.  

QUALITY OVER FORCED LOCALISATION

Nitin Mantri, Member of the Board And Senior Managing Officer & Co-COO, Yokohama Rubber Co and Chairman, Yokohama India, shares his thoughts on the company’s future plans, production capacity, localisation and network expansion.

How significant is India within Yokohama’s global strategy?

India is one of our most strategic markets. It was the first place where we gave complete ownership to local management with no Japanese chairman. Combining Japanese technology and quality culture with Indian innovation and growth hunger has created a powerful combination.

India is already your fourth-largest market. Can it climb higher?

Passenger-car penetration remains much lower than in US, Japan or China. That gives us runway, but catching the very largest markets will still be challenging given the vehicles-per-person difference.

Why has OEM share stayed so low?

We were simply short of capacity. Aftermarket demand absorbed almost everything we could make. With new capacity coming on stream, we are deliberately changing that mix. We aim for 10–20 percent OEM over time. Development cycles with OEMs take three to four years, so results will appear gradually.

How do you approach product development for India?

Some products, such as Earth-1, were designed purely for India. For others, we take global platforms and carefully retune the compound and construction for Indian roads and conditions. The goal is global technology that feels native here.

What is the philosophy behind capacity expansion?

We design factories for flexibility and minimal waste. Long-lead buildings and equipment are installed first. Additional machines are added only when demand thresholds are crossed. Our current footprint can take us from 4.5 million to 6.3 million units. Beyond that, the parent company has consistently shown willingness to invest.

How do you view localisation of raw materials?

We source for the best quality and value, whether from India or elsewhere. Our specifications remain identical regardless of origin. We do not force localisation if it compromises quality or cost.

Are your tyres ready for the rise of electric vehicles?

Yes. Features such as specialised silica compounds that deliver low rolling resistance, higher load capacity and reduced noise work equally well on battery-electric, hybrid and conventional vehicles. That flexibility is deliberate.

What keeps you focused on the aftermarket network?

Channel partners still influence 80–85 percent of tyre purchases. Expanding from 3,000 to 4,500 partners, with particular attention to Tier-3 & Tier-4 towns, and strengthening the Yokohama Club branded stores remain central to our growth. n

TVS Industrial and Logistics Parks (TVS ILP) has leased 80,000 square feet of space at its facility in Visakhapatnam, Andhra Pradesh, to ATC Tires AP, a subsidiary of the Yokohama Group.

The site will serve as a mother hub warehouse to support domestic distribution and export operations for Yokohama passenger vehicle tyres, alongside off-highway tyre ranges under the Alliance, Galaxy and Primex brands. The deployment links regional manufacturing operations with maritime connectivity and trade routes in South and East India.

Ramnath Subramaniam, Joint Managing Director, TVS Industrial and Logistics Parks, said, "We are delighted to support ATC Tires and the Yokohama Group as they strengthen their presence in South India with an 80,000 sq. ft. mother hub warehouse at our Visakhapatnam park. This partnership reflects how our tech-enabled, well-connected infrastructure supports customers’ evolving operational and supply-chain requirements. With its strategic location, established industrial ecosystem and favourable government incentives, Visakhapatnam is emerging as an important destination for businesses across sectors. We see significant potential for companies across e-commerce, FMCG and other industries to leverage the city’s advantages, and look forward to supporting their growth."

Jose Motha, General Manager of Supply Chain Management, Yokohama, said, "An efficient, well-connected warehousing network is integral to building a resilient supply chain. With our highly automated facility in Visakhapatnam manufacturing passenger car and off-highway tyres, our collaboration with TVS ILP in the city is a strategic step towards strengthening our logistics infrastructure and enhancing operational efficiencies. Its connectivity to key trade routes and access to markets across South and East India will enable us to better address evolving business needs and build a more agile supply chain."