Yokohama Rubber reveals three-year management plan to achieve 'hockey stick' sales growth by 2027

Yokohama Rubber reveals three-year management plan to achieve ‘hockey stick’ sales growth by 2027

The company said it will implement production strategies based on a motto of “low cost, speedy development of quality products.”

Yokohama Rubber revealed its new medium-term management plan, Yokohama Transformation 2026 (YX2026). The new plan will be implemented over the next three years, 2024–2026, as the successor to Yokohama Transformation 2023 (YX2023).

Under YX2026, Yokohama Rubber said it will further advance the exploitation of the strengths of its existing businesses and the exploration of new value. Management will resolutely implement the growth strategies established in each business as it aims to achieve “Hockey Stick Growth” during YX2026 to fiscal 2027, the company said. Management’s targets for fiscal 2026, the final year of YX2026, are sales revenue of ¥1,150 billion (approx. $7.7 billion), business profit of ¥130 billion (approx. $865 million), a business profit margin of 11%, and ROE (return on equity) of more than 10%.

Yokohama hockey stick growth
Yokohama says it aims to achieve “Hockey Stick Growth” during YX2026 to fiscal 2027.

In the consumer tire market, recent years have seen low-cost, low-price emerging tire makers expand their production capacity and increase their market share, Yokohama Rubber said. In response, during YX2026, Yokohama Rubber said it will accelerate its efforts to maximize the sales ratio of its high-value-added tires as it aims to increase the profitability of its consumer tire business. In addition, the consumer tire business has initiated the “1-year plant” challenge, which aims to bring new plants online within one year and achieve the low cost and high efficiency needed to compete with the cost-competitiveness of emerging tire makers and achieve “Hockey Stick Growth”. As part of its effort to maximize the sales ratio of high-value-added tires and enhance brand value, the business said it will promote its tires as original equipment (OE) for premium cars and continue its participation in motorsports events around the world. It also will continue its product and regional strategies focused on strengthening the development, supply and sales of tires that respond to specific trends in each regional market, Yokohama said.

During YX2026, Yokohama Rubber said it will implement technology and production strategies based on a motto of “low cost, speedy development of quality products.” Quality products refers to strengthening development of OE tires suitable for the next-generation of premium cars, low cost refers to efforts to drastically reduced costs that can’t be beat by other companies, while speedy development refers to the 1-year plant challenge that is the centerpiece of the consumer tire strategy aimed at achieving “Hockey Stick Growth” and its efforts to speed up tire development, Yokohama Rubber said.

According to the company, management will give serious consideration to environment-related investments that also contribute to corporate earnings. One example is the new plan under YX2026 to reduce its 2019-level Scope 1 & 2 emissions of greenhouse gases by 30% by 2026 and 40% by 2030 while also reducing costs. Also, to reduce Scope 3 emissions, Yokohama Rubber said it will promote greater use of sustainable materials and has targeted increasing its sustainable materials ratio to 28% in 2026 and 30% in 2030. However, during YX2026, it said it will consider raising the 2030 target to 40% without incurring any cost increases.

Regarding capital allocation during YX2026, Yokohama said the plan is to allocate about ¥320 billion (approx. $2.1 billion) of the estimated three-year ¥450 billion (approx. $3 billion) increase in cash to strategic investments and investments in ongoing operations. Lastly, regarding shareholder returns, Yokohama Rubber said it aims to stably and steadily raise its dividend in accordance with its basic policy of maintaining stable dividends while securing sufficient internal reserves to support its business development and fortify its financial position while continuing to actively invest in sustainable profit growth.

You May Also Like

Bridgestone Retail Operations rolls out brand refresh for Tires Plus, Hibdon Tires Plus

Updates to the logo include a single-color tire mark; a logo palette comprised of Tires Plus yellow, black and red; and refined typefaces.

Tires-Plus-new-branding

Bridgestone Retail Operations, a subsidiary of Bridgestone Americas, introduced a phased roll-out of new logos and refreshed brand campaigns for the Tires Plus and Hibdon Tires Plus brands. This is the first brand refresh since Bridgestone acquired the two companies in 2006.

According to Bridgestone, updates to the logo include a single-color tire mark; a logo palette comprised of Tires Plus yellow, black and red; and refined typefaces of both the Tires Plus name and Total Car Care subhead.

Yokohama’s Advan Sport V105 tires will be OE for Subaru Impreza in Europe, Latin America

Yokohama said the tire enhances the car’s handling stability and comfort while reducing rolling resistance.

Yokohama-Advan-Sport-V105
OTAA to host free training for members in Akron, OH

The association said these workshops are designed to enhance technician’s technical expertise and keep them up-to-date with the latest industry advancements.

Stock-technician-training-1400
Hankook Tire debuts Great Catch Rebate through July 7

Drivers who purchase at least four tires from eligible lines will qualify for savings of up to $120.

2024-Great-Catch-Rebate-1400
GT Radial Formula Drift team welcomes 14-year-old driver

Minowa, who will be the newest and youngest driver in the Formula Drift 2024 pro season, will be debuting with Team Jerry Yang Racing.

GT-Radial-FD-Driver-Hiroya-Minowa

Other Posts

Michelin leadership talks EVs, sustainability and airless tires

Executives discuss the future of sustainable tire manufacturing, the relationship between EVs and tire waste and what’s next for airless tire technology.

Michelin-Q&A-1400
Yokohama Rubber’s Advan Sport V107 tires to be used as OE on new Mercedes

The Mercedes-AMG CLE 53 4Matic+ Coupé is being fitted with 265/40ZR19 (102Y) front tires and 295/35ZR19 (104Y) rear tires.

Advan-Sport-V107-Yokohama
Properly diagnosing wheel speed sensors

Wheel speed sensors don’t just read wheel speed – they detect subtle movements to enable all sorts of convenience and safety features.

TR-Continental-speed-sensor
TIA is now accepting nominations for open board of directors positions

The newly-elected board members will serve three-year terms with the potential for re-election to two additional terms.

OTR-Conf---DIck-Gust-1400