View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 23, 2015

Yokohama India eyes OEM supply from local factory

With only a tiny slice of the replacement market and no local manufacturing for OEM supply, Yokohama nonetheless has ambitious plans for its year-old Indian plant in Ballabhgarh, Haryana state.

With only a tiny slice of the replacement market and no local manufacturing for OEM supply, Yokohama nonetheless has ambitious plans for its year-old Indian plant in Ballabhgarh, Haryana state.

"We will decide on the scale of expansion by the end of this year, president and director Satoshi Fujitsu told ETAuto in an interview. Current capacity is just 700,000 tyres a year – utilised 80% – but Fujitsu reckoned the supplier could "at least double" that.

The company currently produces 550,000 units locally and imports about 100,000 for high-end SUVs.

Sales have increased 45% year on year with 420,000 units shifted last year and over 650,000 this year's target.

In the long term, the tyremaker expects to spend JPY10bn to take total capacity to 3m units a year by 2020, ET Auto said.

However, the company has no plans to venture into any new segment and will continue to operate in the passenger vehicle segment.

Yokohama currently has less than 1% market share in the replacement market, and is yet to start locally sourced OEM supply though it does have plans.

"We are already talking to our Japanese carmakers like Toyota, Honda and others to get the OEM business," Fujitsu said.

Yokohama supplies Toyota Kirklosar with imports from Japan but is working towards fulfilling orders within India . Fujitsu said OEM would contribute 30% of the total business once peak production was reached.

Local content is 20% but should increase to 90% in four-five years.

"With greater localisation and higher volume we expect the manufacturing cost to come down by 20%," Fujitsu told ET Auto.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto