TOKYO (Oct. 5) — Yokohama Rubber Co. Ltd. is establishing a wholly owned subsidiary, Yokohama India, in New Delhi, India, in January.
The subsidiary will begin operating as a tire sales and marketing company, though it eventually will become the local headquarters for coordinating expansion of business such as manufacturing tires and marketing hoses and sealants in India, Yokohama said.
Tokyo-based Yokohama currently sells tires in India through a tire distributor in Singapore. But with the growth of the tire market in India, Yokohama said it expects the subsidiary and its dealer network to capitalize on the surge in demand.
Sales of new passenger cars in India have increased 61 percent to 1.14 million vehicles since 2002, the tire maker said. Vehicle sales are expected to reach 2 million vehicles by 2010 and 5 million by 2020.