In an exclusive interview with Insights Success, Mr. Bing-Lin Wu, Head of Marketing & Retail Sales, Maxxis Rubber India Pvt. Ltd, talks about the company and gives an overview of the industry.
IS: Brief us about the journey of Maxxis India– origin, inception, early challenges, success stories, major milestones, to name a few.
Maxxis started its journey in the year 1967 as a manufacturer of bicycle tyres in Taiwan. Steadily it grew its presence to other countries and expanded its product portfolio with scooters, motorcycles, passenger cars, 4x4s, light trucks, trucks and buses, ATVs, lawn and garden products, race karts, industrial vehicles, and trailers. Today, Maxxis is the largest manufacturer of two-wheeler tyres in the world and also the fastest growing tyre company.
For India market, Maxxis tyres for a majority of the categories were being imported. However, looking at the current Indian automobile landscape, the opportunities are boundless and hence, after serving the market as a distributor for over a decade, we realized that it was time we advanced towards setting up Maxxis’s own business arm in the country.
The initial distribution investment helped us understand the national and local market. After closely monitoring and analysing the market trends, we devised the strategy to make a full-fledged entry by starting up our own arm of business with Maxxis Rubber India Private Limited in 2015. The setting up of our first manufacturing facility with an investment of $400 million (Rs. 2,640 crore) is the first step of our full range appearance in India.
In more than 2 years now, Maxxis is moving rapidly to capture the top of mind space for Indian OEM players. First and major accomplishment has been that we started operations from our first manufacturing plant at Sanand in March, 2018 and producing tyres in full throttle.
We had another landmark moment in August as we rolled out the first ‘Made in India’ consignment delivery to our long-standing partners Honda Motorcycle & Scooter India. The first tyre model with 100% local manufacturing was the 90/100-10 M6000 for Honda Activa 5G and Activa i.
We also focused on developing and streamlining the set-up of dealers across India with a holistic Pan India footprint to achieve our target. Today, we have expanded our reach to 325 cities and have 1500+ dealers on-board within a short span of one year.
Furthermore, Maxxis lays great emphasis on digitisation and business analytics and we have successfully set up the dealer locator feature on our website that directs the customer to their nearest Maxxis dealership and also enables them to call or get directions to the nearest dealer via Google navigation from the listing on the site. Customers can visit https://maxxistyres.in/dealer-locator/ to locate Maxxis tyre dealers using their GPS location or by selecting their state and city.
IS: Brief us about the Chairman of your company.
Mr. Tsai-Jen Lo (Robert Lo) is the Chairman and President of Cheng Shin Rubber Industries Co. Ltd. He started his journey with the group in 1978 and has worked across different departments and functions at Cheng Shin. Mr. Lo has served as the President and later as Chairman at Cheng Shin Tire and Rubber (China). He was the Vice President at Cheng Shin Rubber (Xiamen) and has also worked briefly in Atlanta at Cheng Shin (USA).
IS: Kindly talk about the exclusive services offered by your company that distinguishes you from your competitors?
Maxxis is the tyre for the next generation with a strong customer first approach. We have the highest quality product offering which is a combination of superior raw material and world-class technology. Being a truly global company, we are focusing on delivering consistency in our products across all countries be it quality, technology and safety.
With extensive investments in research and development, Maxxis has proficiency in making tyres for all segments. Through our comprehensive market analysis, we have developed the highest quality of tyres suitable for Indian roads. For instance, Maxxis tyres are made with high proportions of natural rubber which offers instant traction, better grip and ultimately superior safety, riding comfort and confidence.
We have utmost confidence in the quality of all our products and hence are offering the best schemes and transparent claim resolution to our customers, including the industry-best 5+1 unconditional warranty with Maxxis 2-wheeler tyres. We want to offer our customers a seamless and easy replacement service which no other brand is offering right now.
Our idea is to build customer trust and hence, we provide a hassle free ‘no questions asked’ replacement; covering both manufacturing and non-manufacturing defects that cause the tyres to become unserviceable. This warranty is valid for five years from the date of manufacture. Another aspect that is unique to our policy is that we provide ‘free of cost’ tyre replacement covering both manufacturing and non-manufacturing defects, valid for 1 year from the date of purchase. For more details and to register their tyres, customers can visit us our website – https://maxxistyres.in
IS: What is the vision and mission of your company?
Globally, Maxxis Tyres is the largest two-wheeler tyre manufacturer and the ninth largest tyre company in the world. With our first India manufacturing plant in Sanand, Gujarat we have already started delivering Made in India products in the Indian market.
Maxxis’s global vision is to become one of the top 5 tyre manufactures in the world by 2026.
We foresee great opportunities in the Indian tyre market currently. 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 OEM’s 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.
Presently, we work as an OEM partner for India’s most loved two-wheeler brand Honda Motorcycle and Scooter India Limited. We are exploring newer alliances with other OEM players and our endeavour is to become the most preferred partner of choice in the two-wheeler segment for both motorcycles and scooters.
Furthermore, the replacement market in India is quite big and offers great prospects for us. We are trying to create a robust infrastructure of dealers through which we can reach out to the potential customers. Within a short span of just over 12 months, we have grown our footprint in the market with over 1500 dealers and our target is to generate sales from the already on-boarded dealerships and continue new appointments at a steady pace.
IS: Kindly introduce us to the current project/projects you are working on?
Maxxis is one of the world’s fastest growing tyre brands and the youngest to be amongst the top 10 tyre companies, globally. The company’s global product portfolio includes tyres for passenger cars, two-wheelers, light trucks, trucks, buses, ATV’s and agricultural & industrial vehicles.
The India facility is currently dedicated to manufacturing of two-wheeler tyres and tubes. Being a global company with high standards of product and technology, we feel we already have a good proposition for the OEMs as they are also looking to partner with global players with similar standards in product quality.
In India, our first OEM partner is, country’s most loved two-wheeler brand – Honda Motorcycle and Scooter India Limited. For the replacement market, a significant range of Maxxis tyres are suited for popular models such as Bajaj (Discover), Hero (HF-Deluxe, Splendor I-Smart, Glamour, Duet, Destini, Passion, Maestro), Honda (Activa, CB Shine, Aviator, Dream Yuga), Suzuki (Access, Hayate, Burgman), Mahindra (Gusto, Centuro), TVS (Jupiter, Wego , Star City ,Victor), Piaggio (Vespa), Yamaha (Ray, Fascino , Saluto) and many others.
We are exploring newer alliances with other OEM players and our endeavour is to become the most preferred partner of choice in the two-wheeler segment for both motorcycles and scooters in India.
IS: What kind of industrial as well as regulatory level challenges do you face today?
Our presence in India as a distributor for over a decade, helped us understand the market scenario. Hence, our entry into the market from regulatory standpoint was relatively easy. We are truly grateful for the uninterrupted support provided to us by the Government of Gujarat and the Government of India for setting up our facility in Sanand.
From channel partners’ perspective, we did not face any major challenges in recruiting dealers in large cities. In fact, we are delighted to receive an enthusiastic response and interest from dealers across the country. However, for rural markets we took several initiatives towards creating brand awareness for brand Maxxis to generate interest and instil confidence in prospective partners.
We organised phase-wise workshops to create awareness amongst our stakeholders such as OE partners, distributors, dealers, fitters, mechanics etc. Our on-ground teams interacted with the customers, sensitised them about the brand and assessed product performance especially in the critical markets. However, what worked best was our best schemes, margin offers and transparent claim resolution process, including the industry-best 5+1 unconditional warranty with Maxxis 2-wheeler tyres that made us a preferred choice for the dealers. Above all, positive word-of-mouth on the quality and technology of Maxxis tyres has earned us the trust of the distributors and dealer partners.
IS: How the industry has evolved in Gujarat and across the nation in the last decade?
The state of Gujarat offers a conducive business environment with its adequate reserves of natural resources and skilled and semi-skilled man power. The state’s proximity to markets coupled with sufficient power supplies makes it an apt location for any manufacturer. We are truly grateful for the uninterrupted support provided to us by the Government of Gujarat and the Government of India for setting up our facility in Sanand.
Maxxis India, in accordance with the Government of Gujarat and the Government of India wishes to strengthen the vision to generate multiple employment opportunity. We are working to extend our manpower to 2000 human resources within a span of five year.
IS: Quality assurance plays a critical role in industry? As an ISO 9001:2008 certified Company and implementing CAPA framework, kindly explain the quality parameters in your company.
With increasing focus on safety and eco-friendly products, Maxxis has the highest quality product offering which is a combination of superior raw material and world-class technology. Being a truly global company, we are focusing on delivering consistency in our products across all countries be it quality, technology and safety.
With extensive investments in research and development, Maxxis has proficiency in making tyres for all segments. Through our comprehensive market analysis, we have developed the highest quality of tyres suitable for Indian roads. For instance, Maxxis tyres are made with high proportions of natural rubber which offers instant traction, better grip and ultimately superior safety, riding comfort and confidence.
IS: How has technology and innovations helped the industry to transform from the earlier years?
With more and more consumers becoming aspirational to possess high-end automobiles, the demand from traditional and conventional two-wheelers has witnessed an upgradation. Today, youth is passionate for off-roading and fast bikes and hence the industry is developing new age technologies that can cater to their growing requirements.
Automation in today’s age is becoming the need of the hour, in every sector and especially in case of the automobile and related industries. Automation, use of advanced robotics and artificial intelligence helps in reduction of errors and the cost. Our partnership with SAP helps in streamlining the entire manufacturing process. Additionally, we take pride in saying that we are amongst the very few tyre manufacturers globally who uses the most advanced technology and innovation. For instance, our most evolved and technologically progressive plant is in Shanghai where the whole production line can be made without lights.
IS: How are you moving forward or contributing to keep the environment clean? Kindly talk about the CSR activities undertaken in Maxxis India.
As per our global vision, Maxxis is committed to sustainable rubber production and supports larger societal causes such as ‘No more hungry children, disaster and emergency relief, education and scholarships for students, development of grass roots sports and environment preservation’.
In India, Maxxis has a Zero tolerance policy towards Environment, Health & Safety (EHS) issues. The Sanand facility is equipped with a full-fledged Occupational Health Center, we have 22 ground water recharge structures that replenish the water level back to the earth, making ours a water neutral facility. We also have the most efficient Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP) that maintains our Zero Liquid Discharge status.
Maxxis India is also committed to community development in and around Sanand, Gujarat. We organized an activation through a painting competition in 15 schools from the nearby villages with an aim to contribute in the development of the villages and provide access to clean drinking water to over 5000 students by installing RO water purifiers in the participating schools.
We are also wary of the fact that women bike riders are not encouraged in India. Maxxis has partnered with Let’s Ryde for Women in Front initiative. As a company with a strong biking DNA, we believe that superior performance and safety go hand in hand. Through this initiative, we want to equip the women with relevant training and safety practices that will help them take the front seat and pave their own journey without any fear or hesitation.
IS: With over five decades of existence, how do you portray the future of Maxxis India?
With over five decades of rich global experience in manufacturing world-class tyres, Maxxis has maintained very strong manufacturing guidelines across 180 countries. Currently, we are present in 6 continents with 21 manufacturing plants and 5 R&D Centres worldwide.
In India, we feel that the future demand will come from the commuter segment bikes with 150~200cc; 350cc as young bike enthusiasts and professionals prefer to drive a 200cc bike that gives great performance and mileage.
With our global expertise and technical prowess, Maxxis India too will be entering higher segments as soon as we see a significant growth opportunity in the segment. We are closely monitoring the India market and steadily coming up with solutions that India wants. With our extensive product portfolio, we are already catering to users of all segments from across age groups, globally. From electric scooters in East Asia to super sports bikes in Europe, Maxxis tyres have become the preferred choice for the users. With our technological prowess and already established global portfolio, we are ready to cater to the demands no matter what direction India’s 2-wheeler industry takes.
We have plans to set up 5 more plants in India which will also cater to the 4-wheeler tyres market. 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.
IS: What kind of future advancements you expect in the tyre industry?
Indian Tyre market is witnessing phenomenal growth owing to the increasing requirement from auto manufacturers, OEM’s, and customers.
Being one of the early adopters of technology globally, Maxxis Tyres’ preparedness for Electric Vehicles has already started. In Taiwan, we are at the forefront for e-scooters and have already built one complete ecosystem. Maxxis is a major supplier of tyres for Gogoro, an electric scooter and battery swapping infrastructure company in Taiwan. We also supply OE fitments to Niu, China’s largest electric scooter maker and the no.1 Smart Electric Scooter brand, globally. Globally, we recently announced our partnership with German electric carmaker e.GO. The strategic partnership will see Maxxis create tyres for the manufacturer’s future models, using its considerable expertise and resources to deliver products that can ensure a smooth and safe ride for drivers of the innovative vehicles. Being an OE on the electric taxi implies Maxxis strong R&D infrastructure and the vision to create world-class futuristic products with rich experience in adapting to new technologies.
We are closely monitoring the India market and steadily coming up with solutions that India wants. With our extensive product portfolio, we are already catering to users of all segments from across age groups, globally. From electric scooters in East Asia to super sports bikes in Europe, Maxxis tyres have become the preferred choice for the users. With our technological prowess and already established global portfolio, we are ready to cater to the demands no matter what direction India’s 2-wheeler industry takes.
Maxxis Rubber India Pvt. Ltd: Exploring New Possibilities
