In fiscal 2024, Yokohama produced one of the company’s biggest milestones to date. For the first time, the company posted sales revenue above ¥1 trillion (approx. $6.7 billion) and business profit above ¥100 billion (approx. $667 million). That marked the third consecutive year of record results, and after reviewing the company’s 2025 integrated report, it’s clear that this achievement is largely due to the latest Yokohama tyre strategy.
Let’s dig into what’s behind the Japanese company’s latest success story.
How the Yokohama Tyre Strategy Balanced the Portfolio
Just a decade ago, Yokohama’s sales leaned heavily toward consumer tyres. In 2016, the company’s consumer-to-commercial tyre ratio stood at 4:1.
“We have corrected this distortion through M&A, starting with our acquisition of ATG in 2016, TWS in 2023, and finally Goodyear’s OTR business in February 2025,” Yokohama Chairman and CEO Masataka Yamaishi said in the report. “As a result, our consumer tire to commercial tyre sales ratio is now in line with the overall market’s 1:1 ratio.”
This change reflects a major tyre manufacturer reshaping its portfolio. The report emphasises that balancing passenger and commercial segments reduces risk, since downturns in one area may be offset by stability in agriculture, mining, or truck/bus.
Off-Highway Tires: A Core Pillar of the Yokohama Tyre Strategy
According to the report, Yokohama views off-highway tyres (OHT) as a central growth driver. Passenger and truck/bus tyre segments remain crowded, but in comparison, OHT offers higher barriers to entry.
“Our acquisitions of ATG and TWS have given us the top share in the market for agricultural machinery tiyes, and our TRELLEBORG, Mitas, ALLIANCE and GALAXY brands have products in all price ranges,” the report states. “By optimising production for each brand and adjusting the product mix to match demand during different economic conditions, we have been able to maximise profits and our market share.”
The February 2025 acquisition of Goodyear’s OTR business corrected a product imbalance, Yokohama states in the report. Yokohama’s OTR business leaned toward construction, while Goodyear’s leaned toward mining. Together, the lineup now reflects the global 6:4 mining-to-construction ratio.
“We have secured the No. 3 position in the global mining and construction tyre market. We will use this acquisition to establish an even stronger global presence,” the company noted.
Consumer Tyre Growth as Part of the Yokohama Tyre Strategy
In consumer tyres, Yokohama says it is pursuing both premium growth and cost competitiveness.
“Our response has been to adopt a strategy to enhance profitability by exploiting our existing strengths in the passenger car tyre market, and raise the sales ratio of our higher-value-added ADVAN, GEOLANDAR, and winter tyres (AGW) from 40% to 50% within the Yokohama brand, which accounts for 99% of our passenger car tyre sales,” Yamaishi said.
