Yokohama targets further European growth amid Chinese tire competition

Tokyo – Yokohama Rubber Co. (YRC) is targeting further growth in Europe after a strong increase in regional tire unit sales last year, the Japanese group announced 30 Sept.

In its 2026 integrated report, YRC described Europe as the “fastest-growing region” in its tire business, with volumes rising 11% year-on-year in fiscal 2025.

The Japanese tire & rubber group did not provide volume figures but linked the growth partly to increased sales of high-value-added products, including large-rim-diameter tires.

This led to an increase of 160% in average sales per existing customer compared to the 2021 baseline, explained YRC’s head of European operations Gregorio Borgo.

“We will focus on expanding large rim diameter tires and truck and bus tires, while increasing OE fitment on electrified vehicles and premium vehicles such as Porsche, the BMW M Series, and Mercedes-AMG,” Borgo added.

The group will also seek to “expand new sales channels” in markets including Germany, the UK and Eastern Europe and improve logistics efficiency through partnerships with major wholesalers.

In North America, focusing on the replacement tire market, YRC said it “established a position as the preferred destination for customers trading down from Tier 1 brands due to our high quality and reasonable prices.”

“We have also strengthened relationships with major retail customers to expand sales channels, and plan to target regions with lower market share, such as the northeastern US,” said North America leader Jeff Barna.

The group also expects to optimise its production network through the construction of the new plant in Mexico, which it said is scheduled for mass production in 2027.

YRC, said Barna, will ‘reorganise existing plants,’ and thereby enhance the cost competitiveness of its passenger car tires in the region.

In China, the group aims to become “the No.1 foreign tire maker,” according to regional manager Ming Fan.

While concerns remain regarding China’s economic outlook, the group said government stimulus measures and increasing motorisation in rural areas are expected to support continued growth in vehicle production and sales.

To offset production cuts by Japanese car makers, YRC said it was strengthening development and sales targeting Chinese OEMs while increasing replacement tire sales through the restructuring of its sales network.

More broadly, YRC highlighted increasing competitive pressure from Chinese tire manufacturers, which it expects to account for around half of global consumer tire production “in the near future”.

Chinese manufacturers already account for around half of global truck & bus tire production, according to the Japanese group.

“Price competition in the mass-market tire segment, particularly from Chinese tire makers, continues to intensify,” YRC president and COO Shinji Seimiya said.

In response, said the COO, YRC will ‘differentiate’ itself through technology in premium tires and strengthen cost competitiveness in the mass market.

The group said its new plants in China and Mexico are incorporating “large-lot production and automation technologies” to improve labour productivity and reach “the level of cost competitiveness required to succeed in global markets.”

In the TBR market, YRC said it had “deliberately positioned ourselves outside direct competition with them and have instead advanced our ‘best alternative’ strategy as an alternative to Tier 1 tire makers.”