New Delhi: Bridgestone India, the domestic arm of the Japanese tyre major, on Wednesday said it aims to be a market leader in premium tyres. In its mid-term business plan, the company looks to clock 25% growth in revenue between 2024 and 2026 and projects annual sales of 10 million tyres by the next two years.
“India’s contribution to our total global portfolio is limited. However, it is the fastest-growing business portfolio in our global business. The growth is coming from the change in customer preferences with digitisation, premiumisation and sustainability as the key enablers,” Hiroshi Yoshizane, Managing Director, Bridgestone India, told ETAuto.
During the past 5 years, Bridgestone India’s revenue grew by 60% and its PCR (Passenger Car Radial) tyre volumes doubled. A market leader in the aftermarket segment of PCR, it takes up about 20% share in the market and aims to increase this to 25% by 2030. However, it has a relatively smaller presence in the TBR (Truck & Bus Radial).
Turanza 6i for premium market
In its attempt to become a market leader in premium tyres, Bridgestone India showcased its Turanza 6i range of tyres for the premium passenger vehicle segment including hatchbacks, sedans and SUVs.
Based on the company’s global proprietary Enliten technology, these tyres are specifically developed for the Indian roads and available in 36 SKUs (Stock Keeping Units) ranging from 14 inches to 20 inches, Rajarshi Moitra, Chief Commercial Officer, Bridgestone India, said.
While these are not EV (electric vehicles) tyres, the company claims these are ‘EV-Ready’ tyres, as they meet the specific requirements of low noise, better fuel efficiency, and enhanced wear life. The prices for this new range will be announced in the next few days. Bridgestone claims that it uses higher silica to reduce molecular friction.
Talking about the demand momentum, the MD said that owing to the cyclical nature of the aftermarket, a strong demand is expected in the industry during the second half of 2024 and early 2025.
Bridgestone India started its operations in 1996 and set up its first manufacturing facility in Kheda, Madhya Pradesh, in March 1998. Another manufacturing facility was set up in Chakan, Pune, in 2013.
In 2017, Bridgestone committed USD 300 million over 5 years to upscale and enhance its total capacity from 15,000 tyres to 47,000 units per day. Last year, the company invested INR 600 crore as part of this plan.
Currently, its total capacity including both the plants stands at 30,000 units daily, which it aims to take to 40,000 in the next four to five years. With over 25 years in the country, Bridgestone has 4000 employees.
Mobility solutions business
In 2021, Bridgestone India began offering its telematics solutions to maximize the efficiency of the tyres and monitor its life cycle for fleet operators. Its tyre-as-a-service business is also “at a nascent stage and expanding gradually. It is a profitable business and takes about 2-3% share of total revenue.”
Last month, ETAuto reported how JK Tyre has a two-pronged business strategy beyond just selling tyres. The Delhi-based tyre maker is running a fleet operating management business and a mobility business vertical. It has also developed a ‘green tyre’ with 80% biodegradable materials which is currently close to a market launch.
Last year, Bridgestone collaborated with Tata Power to install EV chargers on a pan India basis. The first of these was installed at Bridgestone’s Select Store Super Tyres at Shirur on the Pune- Ahmednagar Road and is operational for all electric four- wheelers.
“It’s definitely part of our strategy to play in that ecosystem, leverage our retail. But it is going a little slow, because there are operating challenges. The outlets need to be bigger-sized, however in metro cities they are small setups. We are evaluating certain markets including Orissa and Mumbai. We also see value in installing them on highways,” he said.
However, the company is not looking for any inorganic growth opportunities in India.
To offer solutions to fleet operators globally, Bridgestone acquired the Dutch-based navigation company TomTom’s digital fleet solutions arm – TomTom Telematics – in 2019.
