Yokohama Acquires Japanese Aichi Tire Industry
Yokohama
expands its Commercial Tire Business in Japan by acquiring Aichi Tire Industry
Japan: On 15th March,
The Yokohama Rubber Co., Ltd. completed the acquisition of Aichi Tire Industry
Co. Ltd., which is into manufacturing and selling of cushion and solid tires
for industrial vehicles.
As per Yokohama, the aim of acquisition
is to expand the company’s commercial tire business as underlined in the Yokohama’s
medium-term management plan, Grand Design 100, “tire strategy in the ongoing
Phase IV (2015–2017)”. The strategic goal of the company includes acquiring the
Amsterdam-based off-highway tire manufacturer, Alliance Tire Group B.V. in July
2016 and opening a Mississippi plant for producing truck and bus tires in
October 2015.
TechSci Research believes
that Yokohama has been a leading player in the Japanese tire market and with the
acquisition of Aichi Tire Industry, the company is likely to expand its tire
portfolio in the country, in coming years. Consequent to this, the market share
of the company is estimated to hasten in Japan tire market in following years.
According to a recent report published by TechSci Research, “Japan
Tire Market Forecast and Opportunities,
2021”, tire market in Japan is anticipated to cross $ 32 billion by 2021.
Growing demand for small & mini passenger cars, high vehicle ownership and
increasing demand for better quality tires are some of the major factors
anticipated to positively influence the country’s tire market over the next
five years. In Japan, tire market is predominantly replacement driven owing to
large vehicle fleet and high vehicle ownership ratio. Passenger car tire
segment dominated the Japan tire market in 2015, and the segment is anticipated
to maintain its dominance over the next five years as well owing to increasing
penetration and popularity of electric and hybrid cars.