Yokohama to Add Passenger Car Tires Under Alliance Brand
The
Japanese tire maker is planning to launch low cost passenger car tires under
its acquired company brand name, Alliance
Japan: Yokohama Rubber Co. Ltd. is going to
introduce an all-new line of passenger car tires under Alliance brand across
the Europe by this year. As per the company officials, Yokohama is likely to target
various markets such as United Kingdom, Spain, Germany and France within Europe,
initially.
According to the Japanese tire giant the
Alliance passenger car tire brand would be priced 20-30 percent below the company’s
parent brand. Besides that, the low cost of Alliance passenger car tire brand
would compete with other prominent tire brands, such as Continental's Barum
brand as well as Bridgestone's Firestone brand.
In 2016, Yokohama acquired the
Indian-Israeli producer of OTR tires, majorly for agricultural equipment
segment. Yokohama would produce Alliance brand tires in Japan, whereas, the
company also estimates that with the growing share of Chinese brand tires in
Europe, the demand for low cost tires now stand at about 30-40 percent of entire
consumer tire market in the region.
As per the company, Yokohama generates
an annual revenue of 44 percent from domestic country, 17 percent from North
America and about 7 percent from European region.
TechSci Research believes that the
decision made by the company to introduce new passenger car tires under Alliance
brand would strengthen its current tire portfolio in the regional market.
Moreover, considering the growing demand for passenger car tires in the region,
the company would be able to tap a major segment of specific consumers across
Europe over the coming years.
According to a recent report published
by TechSci Research, “Europe
Tire Market Forecast and Opportunities, 2021”, tire market in Europe is projected to
cross $49 billion by 2021 on account of anticipated stabilization of crude oil
price, expected rise in the vehicle sales and expanding vehicle fleet. The
vehicle fleet in the region is dominated by the passenger car segment, followed
by the commercial vehicle segment. Consequently, the passenger car tire segment
held the largest share in Europe’s tire market in 2015, and its dominance is
anticipated to continue during the forecast period. Growing per capita income
and anticipated increase in the launch of new vehicle models are few of the key
factors expected to drive demand for passenger car tires in Europe over the
next five years. Though traditional retail stores are the most preferred mode
of selling tires in Europe but with the increasing internet penetration &
advantages offered by online tire selling websites, car owners in the region
are increasingly inclining toward online channels for purchasing tires. In
2015, Germany, The United Kingdom, France, Spain and Italy were the largest
tire markets in Europe but in terms of market growth rates the countries are
different which is making it consequently more important to monitor the market
to identify right opportunities.
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