TOKYO—Yokohama Rubber Co. Ltd. has approved a three-year business plan covering 2021-23 that company management said will "deepen" the firm's core strengths while seeking to create new value "that responds to the needs being generated by this new era of great change."
Through this two-pronged approach, dubbed Yokohama Transformation 2023 (YX2023), the Tokyo-based tire maker said it will "transform" into a corporate group that contributes to the growth during the next generation.
By implementing the new plan's initiatives, Yokohama expects to achieve an operating ratio of at least 10 percent annually while growing sales 8 percent by 2023 and 18 percent by 2025 over the 2019 benchmark.
YRC points to fundamental shifts in the global economy and their impact on the transportation sector—such as the decline in individual car ownership in favor of "infrastructure-type" shared vehicles—as reasons for its need to adopt different approaches to growth.
As such, Yokohama will shift its tire business strategy through a two-pronged approach, with the consumer tire sector focusing more intently on high-value-added tires while the commercial tire segment will seize business opportunities presented by the market changes in four thematic areas.
YRC sees the tire market divided roughly equally into consumer tires for passenger cars (including light trucks, SUVs, etc.) and commercial tires used on trucks and buses, agricultural machinery and other industrial vehicles.