Yokohama Rubber Announces New Passenger Car Tire Plant in China

The Yokohama Rubber Co., Ltd. has announced plans to establish a new passenger car tire manufacturing facility in China. Situated in the Qiantang New District of Hangzhou City, Zhejiang Province, this new plant will initially boast an annual production capacity of 9 million tires, with potential for future expansion. The project entails a capital investment of RMB 1960 million (approximately ¥36.7 billion), with production slated to commence in the second Quarter of 2026.

This strategic move comes in response to a request to relocate the existing plant operated by Hangzhou Yokohama Tire Co., Ltd., a subsidiary focused on local tire production, as part of an urban renewal initiative. The new facility will be built at a different location in Qiantang and overseen by Hangzhou Qiantang Yokohama Tire Co., Ltd., a newly established entity in partnership with local district, city, and provincial authorities.

The new plant is the inaugural facility being developed under the "1-year plant" initiative, a pivotal component of the growth strategy for Yokohama Rubber's consumer tire business as outlined in their new medium-term management plan, Yokohama Transformation 2026 (YX2026), spanning from 2024 to 2026. This ambitious "1-year plant" challenge is designed to enable Yokohama Rubber to build plants within a single year, achieving low-cost and highly efficient production that will secure a robust competitive edge in the local market. To realize this goal, Yokohama Rubber will integrate its extensive expertise with the proven capabilities of local partner companies that have demonstrated success in the local market.

In anticipation of rising tire demand in China, the new plant will enhance Yokohama Rubber’s current annual production capacity in the country by an additional 3 million units. This output will encompass tires designated as original equipment for new energy vehicles (NEVs), including electric vehicles (EVs). Furthermore, the new plant aims to bolster the sales ratio of high-value Yokohama Rubber tires in China’s replacement tire market by increasing local production of high-inch tires under the ADVAN global flagship brand and the GEOLANDAR brand, which caters to SUVs and pickup trucks. Prior to the decision to construct the new plant, Yokohama Rubber, with the support of the Hangzhou Municipal Government, forged a strategic alliance with LEAPMOTOR, a leading NEV manufacturer and sales company based in Hangzhou. Moving forward, Yokohama Rubber is poised to expand its tire supply for NEVs and will continue to strengthen its relationships with NEV automakers.

In conjunction with the "1-year plant" initiative, the consumer tire strategy within YX2026 seeks to optimize sales of high-value-added tires by expanding market share for the ADVAN and GEOLANDAR brands, as well as winter tires and sizes 18 inches and above. YX2026 also incorporates "Product and Regional Strategies" aimed at enhancing the development, supply, and sales of tires tailored to distinct market trends across various regions.