Maxxis Tyres, a wholly-owned subsidiary of Cheng Shin Rubber Ind. Co. Ltd has its presence in 6 continents with 21 manufacturing plants and 5 R&D centres worldwide and the company currently sells its products across 180 countries. Maxxis India (Maxxis Rubber India Private Limited) started its business in the year 2015 with its first manufacturing facility in Sanand, Gujarat. Maxxis is currently an OEM tyre supplier to some of the mainstream two-wheeler manufacturers like Honda, Hero Moto Corp and Yamaha apart from some four-wheeler majors like Maruti Suzuki, Mahindra, Tata and Jeep in India. Express Drives recently had an insightful interaction with Mr Bing Lin Wu, Head of Marketing, Maxxis Tyres India during which he spoke about the company’s future plans, impact on the business amid Covid-19 pandemic, and a lot more.
Express Drives – With the Covid-19 lockdown, what has been the impact on the business?
Bing Lin Wu – The world is facing the most unprecedented crisis with Covid-19 pandemic. The lockdown did create a challenging situation for the OEM’s and the ancillary industries as the production got disrupted. However, we resumed production operations on May 4, 2020 at our Sanand plant in Gujarat. Maxxis India plant resumed operations in a graded manner following all government protocols of social distancing, limited workforce, and other safety measures for the employees.
We have witnessed a spur in personal mobility with more and more people opting for two-wheelers, hence we foresee a steady movement for our business as well. Hopefully, the situation will improve by the end of this year or by early next year.
Once the lockdown is over completely, how is Maxxis Tyres planning to resume operations and will there be a different sales approach?
As stated above, we have started production at our plant in a graded manner since May 2020. Maxxis has a deep rooted connect with the India market even before we started production. Our sales strategy will be to tap commuter segment in Tier II and III markets primarily with a focus on safety and longevity that Maxxis Tyres offers. We are committed towards realising the interest of all our stakeholders and will fine-tune our business plan as the situation unfolds in future.
Maxxis recently entered a retail partnership with Yamaha under which Maxxis Tyres will be available for sale at Yamaha dealerships? Are any more such partnerships also coming up in the near future?
Yes, Maxxis had a great start this year as we entered into a dual partnership with Yamaha. First for supplying BSVI compliant scooter range of Yamaha Ray ZR, Fascino and Ray ZR Street Rally 125 FI. Additionally, we announced a significant association by collaborating with Yamaha for one-of-its-kind retail partnership. As per the association, co-branded Maxxis Tyres will be made available for sale at Yamaha dealerships. We entered into a similar kind of retail partnership with HMSI, in early last year. We are open to such strategic retail alliances in the future as well and will share more details once things firms up.
Maxxis Tyres had plans to capture 15 percent market share in the coming 5 years. With the current situation in hand, do you see that target getting pushed any further?
We are one of the fastest-growing tyre companies in India with a long-term vision to achieve a 15% market share by 2026 and set up 5 manufacturing plants. Currently, we have used half of the land (106 acres) we got from the Gujarat government for the planned 60,000 units’ capacity. Owing to Covid-19 pandemic, we are carefully evaluating the situation this year and will take appropriate steps to realise our future plans, in the time to come.
Currently, Maxxis Tyres has tie-ups with Honda, Hero MotoCorp and Yamaha. Are you currently in talks with other OEMs as well?
Maxxis Tyres started manufacturing operations in India in the year 2015 and this year marks 5th year of our operations in India. We want to take one step at a time and then move up the value chain. In 5 years, we have managed to set-up our dealer network across India with a holistic Pan India footprint. We now have over 2000 dealers PAN India.
Today, I’m glad to say that we are the OEM partners for the World’s largest two-wheeler manufacturer Hero Moto Corp and Honda Motorcycles and Scooter India Limited. Recently we have started supplying tyres to Yamaha and Suzuki Motorcycles. In addition to this, with an increasing focus on safety, Maxxis produces the highest quality products developed from a combination of superior raw material and world-class technology. We are in talks with other ODEM partners and will share information at an opportune time.
How do you expect the market to react once this lockdown lifts up completely?
We are confident that the demand will bounce back once the lockdown lifts up completely.
Are you planning to bring any new products in the near future?? If yes, please specify a bit.
The various line-up of tyres for sports bike with different applications for road and weather conditions will be introduced in a very short time. We are evaluating the space of market for more product introduction. Currently, our portfolio covers ~82% of market’s users’ scenario and we plan to raise it more than 90% this year.
Will there be any changes in the retail model and how will outlets handle the new normal in terms of the ongoing situation?
As a responsible corporate we have left no stone unturned to ensure that all our dealer outlets are fully sanitised for customers to make a purchase. Our customers can easily make a purchase by clicking on the Maxxis dealer locator on our website. The dealer locator will advise them with the nearest dealership to minimise travel time.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.