Goodyear Plans To Sell Farm Tyre Division In India: Report

Goodyear Tire and Rubber is preparing to sell its farm tyre business in India, according to industry sources familiar with the matter, says a report by ET Auto. This development comes approximately one year after the company divested its off the road (OTR) business to Japanese manufacturer Yokohama in a $905 million transaction.

The Indian subsidiary of Goodyear disclosed to stock exchanges on Monday that its US parent company intends to conduct a comprehensive strategic review of its farm tyre operations in India, the report added. The company's statement noted that "the potential outcome of this strategic review is not currently known and there can be no assurance that the strategic review will result in the implementation of any transaction."

Market Leadership Position

According to sources, Goodyear's US headquarters has already engaged strategic advisors to explore a complete sale of the India farm business, with an estimated valuation between Rs 2,500-Rs 2,700 crore. The division holds a commanding 50 per cent market share in India, making it the dominant player in the agricultural tyre sector. The operation specialises in manufacturing tyres specifically designed for agricultural machinery and equipment, serving farmers throughout India.

A Broader Transformation Strategy

This potential divestiture aligns with Goodyear's broader reorganisation initiatives announced in November 2023. The Ohio-based tyre manufacturer revealed plans for a strategic review and "portfolio optimisation" programme targeting three specific business segments: its chemical operations, the Dunlop tyre brand, and its off-the-road division. This comprehensive overhaul aims to streamline the company's portfolio and reduce operational expenses, with a target of generating more than $2 billion in gross proceeds.

The company previously stated that these restructuring measures, including facility adjustments and plant optimisation, are projected to deliver annual run-rate benefits of $1 billion by the end of 2025, plus additional benefits of $300 million during this period. 

Current Market Position

As of recent valuation, Goodyear India has a market capitalisation of Rs 2,114.97 crore. The parent company maintains a 74 per cent ownership stake in its Indian subsidiary, according to December 2024 data.