Japan-based Yokohama Tyres, which opened a manufacturing plant last month, is undertaking feasibility studies on supplying tyres to Indian car companies, a top official of the company said.
“Right now we are not in position to talk to these companies on business deals, as we have not started full manufacturing here. Depending on negotiations on quality, pricing and development timings, we will consider the aspects of supplying to them as well,” Takeshi Fujino, Managing Director, Yokohama India, told Business Line.
Yokohama sells to Japanese and European companies from its plants in Japan, the Philippines and Thailand. Therefore, it would not be a problem for the company to directly deal with the original equipment manufacturers (OEMs) here as well, he said. However, Fujino said it was a long-term plan and may become a reality only around 2018.
The company, which entered India in 2007, has been selling passenger and sports utility vehicle (SUV) tyres in the after market through imports. It will continue to do so at least for the next three years, even though it is rolling out its first tyres manufactured in India in a few months. Yokohama Tyres is expecting a market share of 5 per cent by 2017 from the 2 per cent right now.
“We are planning to start the factory (in Bahadurgarh, Haryana) in July and roll out tyres in the market during August-September. Right now, trial productions are on and once production starts, we will make one lakh units in the first year,” Fujino said.
Source: The Hindu Business Line
Published: 04 Mar 2014