Market Reports, News

AUSTRALIAN vehicle aftermarket company RPM Automotive Group has expanded its wholesale and retail business with a commercial relationship with Yokohama Australia that is seen as a significant milestone in enhancing RPM’s wholesale and retail operations throughout Australia. 

RPM now has the sub-wholesale distribution of Yokohama products through RPM’s national tyre network that boosts its presence in the tyre market. 

In a notice to the Australian Securities Exchange (ASX), RPM said the deal also enhances Yokohama’s national reach in commercial and light truck sectors and increases its distribution efficiency. RPM will become one of Yokohama’s preferred sub-wholesale partners, managing logistics and wholesale supply via its warehouse network. 

RPM said it will also operate as a preferred supply partner to Yokohama’s retail store network (Tyres & More) throughout Australia, aiming to service a substantial portion of the annual supply value with non Yokohama brands, solidifying RPM’s position in the tyre supply chain, while unlocking additional sales.

It said this will substantially assist Yokohama in the commercial and light truck sectors where RPM is particularly strong.

RPM will also sell Yokohama brands through its network, broadening the range of brands on  offer. All distribution initiatives with Yokohama will operate under RPM Autoparts, a subsidiary of RPM Automotive Group.  

RPM CEO Guy Nicholls said it was “a pivotal step in RPM’s journey as a leader in the Australian automotive aftermarket sector”. 

Guy Nicholls

“The distribution relationship not only enhances our extensive network and logistic capabilities but also positions RPM as one of Yokohama’s national sub-wholesale distribution partners, it underscores our commitment to optimising distribution efficiency,” he said.

“The collaboration extends beyond distribution, as RPM operates as a vital supply partner to Yokohama’s retail network (Tyres & More), further solidifying our role in the tyre supply chain.  

“The relationship will drive efficiencies and provide benefits to both parties – providing many of our brands with access into the Yokohama network and allowing us to sell additional Yokohama brands into our network.  

“We look forward to the success and mutual benefits that this collaboration will bring to both RPM and Yokohama.”  

Yokohama national sales manager Tatsuya Kano said: “RPM and Yokohama are already aligned with product and service offerings. RPM also has multiple Tyres & More sites and is considering more. 

“With the new strategic alignment we will be able to collaboratively take further market share in the Australian tyre industry. 

“Yokohama is a diverse manufacturer, servicing most segments of the tyre industry, and our alignment with RPM will no doubt deliver substantial benefits to both parties.”  

Yokohama tyres are sold through 300 retailers in Australia including Bob Jane T-Marts, Tyrepower, SuperCheap Auto and Tyresales. It is one of the major tyre manufacturers in the world with more than 27,000 employees.

By Neil Dowling

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