Yokohama India plans to raise OEM share to 20% after capacity expansion

Yokohama India says its recent capacity expansion at its Vizag plant has come at the right time, as demand continues to outpace supply in the passenger car tyre space. The company recently increased its passenger car radial tyre output to 4.5 million units annually, a strategic two-thirds jump in production.

In a recent interaction, the company shared details about its recent capacity expansion, market demand trends and its broader growth strategy in India.

OEM share currently in single digits, 20% target in sight

According to the company, its Bahadurgarh plant had already reached full capacity. The added Vizag capacity now allows the brand to better serve both the replacement and OEM markets. While Yokohama India has traditionally been strong in the aftermarket, the company said the expansion helps create a more balanced portfolio as it works to deepen OEM partnerships.

Currently, OEM supplies contribute only low single-digit percentages to Yokohama India’s overall volumes. With capacity expansion and partnerships progressing, the company is targeting to raise this to around 20 percent over the next three to five years.

SUV boom drives demand for 16-18 inch tyres

The timing also aligns with broader market trends. India’s passenger vehicle market continues to grow steadily, with buyers increasingly opting for premium, performance-focused and comfort-oriented tyres.

Yokohama believes the Vizag facility positions it well to respond to this shift with greater flexibility and speed.When asked about competition in the key 14–18 inch tyre space, the company highlighted that the 16–18 inch segment is now the main growth driver for the industry, largely due to the surge in SUV sales. SUVs currently account for over two-thirds of vehicle sales in India, pushing demand for larger and more premium tyre sizes.Yokohama’s strategy here rests on three areas. Product-wise, it is banking on the Geolandar SUV range while also expanding its BluEarth-GT Max lineup to target buyers focused on comfort and luxury. On the retail front, the Yokohama Club Network (YCN) remains central to delivering customer experience and building brand loyalty. Alongside this, the company is increasing its use of targeted digital and hyperlocal campaigns to reach informed and quality-conscious buyers.

In terms of product mix, Yokohama said its Earth-1 Max range continues to form the bulk of its PCR business. At the same time, premium and high-performance tyres now account for around 25 percent of PCR sales, with that share steadily increasing. Yokohama India also shared that it now holds a double-digit share of the passenger car replacement market, more than doubling its position compared to five years ago. Over the next five years, the focus will be on sustainable and profitable growth through deeper OEM integration, wider retail reach and a sharper product portfolio.

The stated goal is to strengthen brand equity and consumer trust in the premium segment rather than chase volume alone.

EV-specific tyres under evaluation for Indian market

Retail continues to play a major role in Yokohama’s strategy. The Yokohama Club Network currently contributes nearly two-thirds of the company’s total business. Looking ahead, Yokohama is targeting a 15 to 20 percent expansion of the YCN network by FY2025–26. On electric mobility, Yokohama said it already offers EV-specific E+ tyres globally. For India, the company is closely studying EV usage patterns, vehicle specifications and consumer expectations before introducing similar products.