The Japan Bank for International Cooperation (JBIC) expedited the loan agreement last week, providing up to USD 49 million to ATC Tyres AP Private Limited (ATCAP), a subsidiary of Yokohama Rubber Co., Ltd. (Yokohama Rubber) based in India. This financing is complemented by contributions from Mizuho Bank, Ltd., MUFG Bank, Ltd., and the Bank of Yokohama, Ltd., totaling USD 82 million.
The financial support is for ATCAP's expansion of its facilities for manufacturing and selling passenger car tyres in India. This initiative aligns with Yokohama Rubber's strategy to enhance production capacity and cost competitiveness in response to the growing demand in India, the world’s third largest automobile market in 2023 by units sold.
Furthermore, Yokohama Rubber aims to bolster its international competitiveness and supply chain resilience through this overseas business expansion. The loan also supports Yokohama Rubber’s commitment to sustainability, including its goal to achieve net-zero operational greenhouse gas emissions and utilize 100% sustainable raw materials by 2050. In India, the company plans to increase its use of renewable energy and sustainable raw materials, with the loan facilitating these efforts.
Yokohama India has been in operation since 2007 and has contributed to a sharp increase in sales of YOKOHAMA branded tyres in the Indian market. The tyres sold in India are specifically designed for Indian driving conditions. By producing quality tyres that meet local market needs and expanding its sales channel, Yokohama India has grown rapidly and has made India one of Yokohama Rubber’s most important markets.
The company looks to increase its annual passenger car tyre production capacity in India from the current 2.8 million to 4.5 million tires
As Japan's policy-based financial institution, JBIC remains committed to providing financial support that strengthens the supply chain resilience of Japanese industries and assists companies in expanding their businesses.
