According to one of the industry experts in India, Pawan Ruia,Chairman Ruia Group, the investment will boost the Indian tyre sector, which is looking to make-up the lost ground.
One of the leading Taiwanese tyre maker Maxxis Group is planning to build five factories in India, as it aims to bet big on the South Asian country. Maxxis expects India to play an instrumental role in its ambition of entering the list of top 5 tyre companies in the world by 2025, as per a senior official of the company.
Currently standing at the 9th positionin the list of world’s largest tyre brands, Maxxis managed to clock a revenue of around USD 4 billion in 2019. The company believes that Indonesia and India will play a massive part in its aim of achieving great ground in the next 5 years.
As per the sources, Maxxis is investing USD 400 million on its first manufacturing plant at Sanand in Gujarat. The company is looking to increase the output of two-wheeler tyre to 60,000 units per day from 20,000 units at this stage.
According to one of the industry experts in India, Pawan Ruia, chairman Ruia Group, the investment will boost the Indian tyre sector, which is looking to make-up the lost ground and seize on every opportunity that comes its way. The company is also expecting Indian market to grow to a capacity of around 10 crore units of two wheeler tyres per year.
Maxxis has a group goal of growing into the top five tyre makers globally in the next five years. We have accomplished quite a lot in East Asia, Southeast Asia and have significant presence in Europe and in American market. The next major international markets for us will be two places — one is India and another Indonesia, the major two-wheeler markets in the world,” said Maxxis India Marketing Head Bing-Lin Wu.
The Taiwanese tyre giant’s Indian arm supplies two-wheeler tyres to Honda, Hero MotoCorp, Yamaha and Suzuki from its Sanand plant at this juncture. It also supplies four-wheeler tyres to Mahindra & Mahindra, Tata Motors, Maruti Suzuki and Jeep.