Yokohama to set up Indian subsidiary in 2007

Tokyo - Yokohama Rubber Co. will set up a wholly-owned subsidiary in New Delhi, India, in January 2007.

Yokohama India will start as a tyre sales and marketing company but is planned to become the local headquarters for future expansion of the Japanese firm's tyre manufacturing and automotive hose and sealants marketing operations.

The Indian unit will have a start-up capitalisation of Yen 50 million (€334 000).

Currently, Yokohama markets passenger car tyres in India through its Singaporean tyre distributor.

“Tyre demand in India is beginning to surge and the new subsidiary and the dealer network that it will build signify the determination at Yokohama to share fully in that growth,” a statement from Yokohama said.

“The expected surge in Indian tyre demand is part of growth in India's automotive sector overall and Yokohama is preparing to serve that growth with tyres and also with other automotive products.”