Taiwan
headquartered Maxxis invested over $400 million for establishing a tyre
manufacturing facility in Sanand (Gujarat) in 2015. India is touted to play a
vital role in achieving Maxxis’s vision to become one of the top 5 tyres
manufactures in the world by 2026. The company is targeting to capture a market
share of at least 15% of India’s two-wheeler tyre market. Maxxis Rubber India
Pvt Ltd (Maxxis India) is planning to build up to five factories in India to
cater to the 4-wheeler tyres market. In this interview, Bing-Lin Wu,
Marketing Head, Maxxis Rubber India Pvt Ltd, highlights on emerging
opportunities in the Indian tyre segment and the company’s plan to ramp-up
business in India.

How has been the journey of Maxxis India (Maxxis
Rubber India Pvt Ltd) since it started its business in 2015?

Our journey in India has been extremely noteworthy with respect to new product development, introduction of new
technologies and OEM alliances.  We started our manufacturing in the year 2015 and as we move
ahead in the year 2021, our focus is to reach closer to our goal. The last few years has given us a good headway and we managed to
establish our feet on the India map. We are fully committed to the
government’s Make in India
initiative and our key focus is to fulfil domestic market for now.

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.

We have managed to set-up a pan India footprint with a
network over 2000 dealers across India. We have partnered with India’s leading two-wheeler
manufacturers namely Hero Moto Corp, Honda Motorcycles and
Scooter India Limited, TVS Motor Company, Yamaha Motor India and Suzuki
Motorcycles, etc to name a few. We are expanding our portfolio as
per new trends and market demand.

What types of tyres are you offering in India? Which
segments are driving demand?

Maxxis is a globally renowned brand offering
tyres for both two-wheeler and four-wheeler segment. In India, while we import
performance tyres for the 4 wheelers and manufacture commuter as well as
performance tyres for the two-wheeler segment.

Our current portfolio covers approximately
82% of market’s users’ scenario and we plan to raise it more than 90% this
year.

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.

We are also looking at some
collaborations in the near future and will share details once it gets firmed
up.

How do you view the tyre market in India? What are the
challenges and opportunities in this market?

The Indian tyre industry is an integral part of the auto sector. The
tyre industry consists of a vast consumer base, which includes motorcycles,
passenger cars, buses, trucks, etc. The demand of tyres is primarily catalysed
from two end-user segments – OEMs and the replacement segment. The tyre market for OE is projected
to grow at a CAGR of 5.48% from 2016 to 2021 and will reach a market size of
Rs. 2,074-2,423 billion by 2026. These indicators show huge scope for OEMs to
capitalise on the opportunity and hence our aim is to fortify India market and
capture a market share of at least 15% of India’s two-wheeler tyre market
within 5 years.

Digitization, advance technology, machinery, and
latest management tools play a huge role. Be first is what we called as
Innovation: do things others yet thought of. Back in 2017, we disrupted the
market with best warranty policy ‘5 Year Unconditional Warranty’ in the
industry, which is still unmatched of till date. Secondly focus on relationship
marketing. For us, each and every customer, dealer and distributor are our
brand ambassador and for us their satisfaction is of utmost priority.

What has been the effect of COVID on your business?
What are your mitigation plans to sustain growth?

India is facing the heat of the most unprecedented
crisis with the second wave of COVID-19 pandemic.

At this moment our priority is stand with our people
across all functions and think about their wellbeing. We will abide with the
State rules and regulations and work on our action plan according to the new
covid guidelines.

I feel a planned and concerted response, both
immediate and medium to long term will ensure a quick and sustained recovery
and we are following the same for a swift recovery.

How important is India for Maxxis’s global vision to
become one of the top 5 tyre manufacturers in the world by 2026?

We believe that the Indian market is touted to play a
vital role in achieving Maxxis’s global vision to become one of the top 5 tyres
manufactures in the world by 2026. Maxxis India is targeting to capture a
market share of at least 15% of India’s two-wheeler tyre market by 2023. Apart
from catering to the domestic tyre market, the product portfolio from the
Sanand facility will be exported to South Asia and will further expand to
Africa and Middle East countries in the coming years. Also, we have plans to
build up to five factories in India which will cater to the 4-wheeler tyres
market.

In achieving the group goal of 2026, we have estimated
a certain output from the Indian market alone that will help us achieve that
target.

What kind of trends are you observing in the Indian
tyre industry?

According
to the India tyre market report by IMARC Group, the market to reach a volume of
245 million units by 2025 growing at a CAGR of 4.8% during 2020-2025.

Moreover, the growing radialisation for providing additional
mileage, increase use of smart tyres, and improve the driving experience for
vehicles has further augmented the product demand which has boosted the tyres sales
in the country, thereby positively influencing the growth of the India tyre
market.

What are your growth plans for Maxxis India?

The
company made an investment of over $400 million in its Sanand plant in Gujarat.
We currently employ workforce of more than 600 people and are committed to
extend manpower to 2000 within 5 years.

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.

We have penetrated across all 29
states and 8 Union Territories of India and opened our first exclusive retail
store in Goa last year to meet the growing demands of our customers.

We are working on new alignments and
partnerships with new set of OEMs for the two-wheeler market as well as working
on expanding our portfolio for the replacement market.