Maxxis Tyres to set up five manufacturing plants in India: Plans to become fifth largest globally

Taiwanese tyre manufacturer, Maxxis Tyres has announced big plans for the Indian market while aiming high at the global level.

By: | Updated: August 21, 2019 10:25 AM
Bing Lin-Wu, Marketing & Sales head, Maxxis Tyres India

Maxxis Tyres have announced that with their presence firmly in India, the Taiwanese manufacturer plans to expand to up to five manufacturing plants here. The manufacturer’s long term goals in India is to gain up to 15 per cent market share in the two-wheeler market, something which its OE projects will help it achieve. Maxxis is a part of the Cheng Shin Rubber Industry Company, a Taiwanese tyre manufacturer founded in 1967. Over the years, the company has expanded to produce many different kinds of tyres for multiple automotive applications and is now one of the top ten manufacturers globally in terms of sales.

While Maxxis has been following the distribution model in India for over a decade, the Taiwanese entity registered as a company in India in 2015 and within a year, began operations at a brand new facility which they set up in Gujarat. Currently, in India, Maxxis is manufacturing two-wheeler tyres and supplies units to Honda Motorcycle and Scooter India (HMSI) and Hero MotoCorp. Maxxis continued its global partnership with the Honda group in India by setting up its first plant in order to cater to demands for tyres from the latter’s Gujarat plant with localised products and manufacturing.

As the manufacturer is a recent entrant to the Indian market, the company is evaluating its options and observing the conditions for eventual expansion. Bing Lin-Wu, Marketing & Sales head, Maxxis Tyres India said that the company’s long term plan for operations includes setting up of five manufacturing plants in different parts of the country to be able to cater to all requirements in the region.

Bing Lin-Wu stated that while the company currently is manufacturing tyres for the two-wheeler market, they have the margin to expand its facility in Gujarat. Maxxis is currently evaluating the Indian market to plan its expansion project whether to expand its two-wheeler business in terms of manufacturing or begin production for four wheeler tyres. The Taiwanese tyre maker is one of the suppliers to Maruti Suzuki and Mahindra & Mahindra, supplying units manufactured from their Thailand facility.

Bing Lin-Wu said that “As we plan to become the fifth largest tyre manufacturer globally, one of the key markets that we believe can help us achieve that goal is India. We are very excited as we think we have chosen the right time to join the Indian market and we wish to grow with the market together.”

“Just like the five manufacturing plants we plan to set up in India, the R&D facility is one of the milestones Maxxis would like to have in India,” he added,

By 2024, Maxxis aims to have a 15 per cent market share through its replacement distribution channel for two-wheelers. However, the company also believes that the target can also be achieved through expansion of the OE projects by supplying new OEMs or for more models of their existing partners. By 2025, Maxxis Tyres aims to be at the number five position globally.

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