Yokohama India Plans ₹950 Crore Investment as SUV Tyre Demand Accelerates
Japanese tyre manufacturer Yokohama is planning to invest close to $100 million (around ₹950 crore) in India over the next one to three years, driven by rising demand for SUV tyres and continued growth in the passenger vehicle market.
According to Nitin Mantri, Chairman of Yokohama India, the planned investment will help the company increase its annual tyre production capacity from 4.5 million to 6.3 million tyres. The pace of investment, however, will depend on how the Indian market develops.
Mantri said the company could accelerate its investments if it secures more Original Equipment (OE) partnerships, while a predominantly aftermarket-driven market could result in a more gradual expansion.
Expanding Manufacturing Capacity
Yokohama India currently operates two manufacturing facilities, located in Bahadurgarh, Haryana, and Visakhapatnam, Andhra Pradesh. The company has already invested nearly ₹2,000 crore across these facilities in the passenger car radial (PCR) segment.
The planned capacity expansion comes at a time when India’s SUV market is seeing strong growth. Mantri noted that the SUV segment has grown by around 15–20% over the past six months following the GST reforms, supporting both current OE shipments and future demand for replacement tyres.
New Premium SUV Tyre Range
As part of its strategy to tap into the growing SUV and crossover segment, Yokohama India has also introduced its new premium tyre range, GEOLANDAR X-CV.
The range is designed specifically for crossovers and SUVs, positioning the company to benefit from India’s growing preference for larger passenger vehicles.
Focus on Tier 3 and Tier 4 Cities
Beyond expanding manufacturing capacity and its premium product portfolio, Yokohama’s next phase of growth will focus on strengthening its presence in Tier 3 and Tier 4 cities.
With SUV ownership expanding beyond major urban centres, the company sees smaller cities as an important opportunity for both OE and aftermarket growth.
Overall, Yokohama’s planned ₹950-crore investment reflects its confidence in India’s long-term passenger vehicle and SUV market. With capacity expansion, new premium products and a wider focus on emerging markets, the company is positioning itself for the next phase of growth in India’s tyre industry.
