Bridgestone set to invest $5 billion in enhancing EV tyre offering

Bridgestone is planning to invest around 800 billion yen ($5.38 billion) over the three years between now and 2026, with the money earmarked for the development of electric vehicle and mining tyres along with decarbonization technologies, according to a Nikkei report.

In what amounts to a preview of Bridgestone’s new medium-term business, which is slated for publication around March 2024, Bridgestone is expected to 5x its heavy tyre range, including for EVs, to around 50 products by December 2026.

In addition, developing carbon-neutral technology is said to be another priority. Specifically, Bridgestone plans to invest in the development of sustainable materials and “will consider teaming with digital startups and acquiring businesses that could boost its competitiveness”.

In short, Bridgestone will invest in creating “new technologies and add new value while lowering tyre prices,” CEO Shuichi Ishibashi told Nikkei, but – seemingly contradictorily – Bridgestone is positioning itself at the top of the tree in terms of brand segment. Nikkei specifically observes that the big investment news comes as Chinese and South Korean tyremakers make gains in their respective arenas. In order to avoid a price war, “Bridgestone intends to concentrate on developing and manufacturing higher-end products at its plants in the US, Europe and Asia.” And that means boosting the average price of tyres “amid cooling economic conditions, particularly in Europe”, according to Nikkei.

Nikkei reports that Bridgestone holds a global market share of 14.2 per cent in tyre sales, second only to Michelin. Furthermore, the company is expected to report a 12 per cent jump in net profit for 2023 to 335 billion yen on a 1 per cent increase in revenue to 4.15 trillion yen.