Tokyo - Yokohama Rubber Co. Ltd is to expand production capacity for passenger-car tires at its manufacturing and sales subsidiary in India, the Japanese group has announced.
The ¥6.6 billion (€49 million) project will increase Yokohama India Pvt Ltd’s annual production capacity from 700,000 to 1,530,000 tires, according to 6 Feb press statement.
The move is in response to growth in India’s automotive market driving strong sales of tires, according to Yokohama.
“The company decided to expand local production capacity to avoid capacity shortfalls over the medium term,” said its statement.
Construction of the new facilities is expected to start in March this year, with production scheduled to begin in the fourth quarter of 2019.
Yokohama India was established in 2007 as a tire sales subsidiary. it began local production of passenger-car radial tires in July 2014 after completion of its tire plant at the Bahadurgarh Industrial Estate in the state of Haryana.
The plant’s new facility will manufacture OE tires for local car makers as well as replacement tires, including tires for passenger cars and SUV tires. The unit currently employs 474 people.