TOYO TIRE

Basic Information

Stock Code
5105
Industry
Rubber Products
Category Detail
Auto Parts
Prefecture
Hyogo Prefecture
Establishment Year
August 1945
Listing Year
May 1949
Official Website
https://www.toyotires.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yokohama Rubber, Bridgestone, Sumitomo Rubber, Topy Industries

Overview

TOYO TIRE is an automotive tire and parts manufacturer founded in 1945, holding the No. 4 tire market share domestically and boasting an overwhelming share in the U.S. market.

Current Situation

TOYO TIRE achieved consolidated sales of 552.8 billion yen and operating profit of 76.9 billion yen for the fiscal year ending December 2023. Centering on tires for passenger cars, SUVs, and pickup trucks, it expands into global markets including North America while focusing on technological development. It operates R&D centers in the U.S., Germany, and Japan, with production in Japan, the U.S., Malaysia, China, and Serbia. It is actively engaged in motorsports such as the Dakar Rally and Nürburgring 24 Hours race, contributing to brand value enhancement. In recent years, it has formed a capital and business alliance with Mitsubishi Corporation to strengthen its management base. It sold its chemical products business to concentrate resources on mobility-related operations. It is also proactively addressing sustainability and trust recovery initiatives, advancing growth strategies toward 2030.

Trivia

Interesting Facts

  • Holds approximately 40% share in the U.S. large-diameter tire market.
  • Changed company name from Toyo Rubber Industry in 2019.
  • Actively sponsors motorsports.
  • Operates three-pole R&D centers in North America, Europe, and Asia.
  • Established Europe's first production factory in Serbia in 2022.
  • Deploys widely in global markets with diverse brands.
  • Past issue with falsified insulation panel performance.
  • Part of Mitsubishi Corporation Group, with Mitsubishi as top shareholder.
  • Participation history in Dakar Rally and Nürburgring 24 Hours.
  • Consolidated employees numbered approx. 10,395 at end of 2023.
  • Brand logo is plural 'TOYO TIRES' but company name is singular.
  • Expanded in the U.S. since the 1950s, building North American presence.
  • Headquarters in Itami City, Hyogo Prefecture, with strong local ties.
  • Launched new corporate CM 'Light Up the Blue' from 2020.
  • Sponsors Japan national soccer team and Los Angeles Dodgers.

Hidden Connections

  • Mitsubishi Corporation is deeply involved in management as the top shareholder.
  • Motorsports activities serve as important testing grounds for product development.
  • Strength in the U.S. market originates from research alliances with U.S. companies in the 1970s.
  • Serbia production base serves as a strategic hub for European expansion.
  • Sale of former chemical products business allows concentration of management resources on mobility operations.
  • Long-term contracts for parts supply with multiple major automakers.
  • Maintains related companies in Toranomon and Osaka for broad business network in Japan.
  • Sports sponsorship contributes to brand awareness and market expansion.

Future Outlook

Growth Drivers

  • Expansion of demand in global mobility market
  • Growth in SUV and pickup truck markets
  • Strengthened development of eco tires compliant with environmental regulations
  • Expansion of sales channels in North America, Europe, and Asia
  • Provision of high value-added products through technological innovation
  • Application of motorsports technology to products
  • Efficiency improvements in production and logistics through digitalization
  • Management base strengthening utilizing capital alliances
  • Brand value enhancement through sustainability promotion
  • Market development and expansion in emerging countries
  • Demand for technology development to improve safety performance
  • Tire development for autonomous driving and electrification

Strategic Goals

  • Achieve global sales of 1 trillion yen
  • Eco tires to account for over 50% of total sales
  • Expand North American market share to 45%
  • Double motorsports championship wins
  • Sustainable materials ratio over 70%
  • 30% reduction in CO2 emissions from production processes
  • Product development efficiency via AI utilization
  • Foster organizational culture of diversity and inclusion
  • Deploy smart factories to global bases
  • Expand and strengthen social contribution activities regionally

Business Segments

Automotive Tire Manufacturing and Sales

Overview
Handles manufacturing and sales of tires for automobiles in general, providing products compatible with diverse vehicle types.
Competitiveness
40% share in North American market, strong global brand power
Customers
  • Automobile manufacturers
  • Distributors
  • Repair shops
  • Corporate fleets
Products
  • Passenger car tires
  • SUV tires
  • Pickup truck tires
  • Truck and bus tires

Automotive Anti-Vibration Rubber Parts

Overview
Manufactures anti-vibration rubber parts contributing to vehicle comfort.
Competitiveness
High technological capabilities and quality control systems
Customers
  • Automobile OEM manufacturers
  • Automotive parts suppliers
Products
  • Engine mounts
  • Suspension bushes
  • Anti-vibration rubber parts

Industrial Rubber Products

Overview
Supplies multi-purpose rubber products for industrial machinery.
Competitiveness
Versatility and durability for diverse applications
Customers
  • Machinery manufacturers
  • Factory equipment management companies
Products
  • Industrial rubber belts
  • Rubber hoses
  • Anti-vibration rubber pads

Overseas Market Expansion Support

Overview
Supports global expansion with product development tailored to regional needs.
Competitiveness
Rapid response capabilities through multi-country bases
Customers
  • Overseas distributors
  • Local automobile manufacturers
Products
  • Region-adapted tire products
  • Technical support services

R&D Services

Overview
Promotes R&D activities aimed at innovation in materials and performance.
Competitiveness
Collaboration with world-class technology centers
Customers
  • Internal divisions
  • External technology partners
Products
  • New material development
  • Performance evaluation
  • Motorsports technology

Motorsports Participation

Overview
Provides high-performance motorsports products.
Competitiveness
Field experience proving durability and performance
Customers
  • Race teams
  • Event organizers
Products
  • Racing tires
  • Off-road tires

Building Rubber Products Supply

Overview
Supplies rubber and resin materials for construction and civil engineering.
Competitiveness
Application of specialized rubber technology
Customers
  • Construction companies
  • Building materials trading companies
Products
  • Insulation panels
  • Anti-vibration rubber sheets

Environmentally Responsive Product Development

Overview
Develops and provides environmentally considerate products.
Competitiveness
Introduction of advanced environmental technologies
Customers
  • Automotive-related companies
  • Environmental regulatory bodies
Products
  • Low-fuel-consumption tires
  • Recycled materials

Logistics and Supply Chain Management

Overview
Supports building efficient supply networks.
Competitiveness
Optimized global-scale logistics
Customers
  • Sales partners
  • Warehousing companies
Products
  • Inventory management systems
  • Shipping and delivery services

Tire Maintenance Services

Overview
Supports tire longevity and performance maintenance.
Competitiveness
Network of expert services
Customers
  • Repair shops
  • Corporate customers
Products
  • Regular maintenance
  • Quality assurance programs

OEM and Technology Licensing

Overview
Promotes technology provision to other companies and joint development.
Competitiveness
Advanced development capabilities in proprietary technologies
Customers
  • Other tire manufacturers
  • Automotive parts manufacturers
Products
  • Tire manufacturing technology
  • Anti-vibration rubber technology

Sports Sponsorship

Overview
Contributes to brand awareness and market expansion.
Competitiveness
Powerful sports collaboration network
Customers
  • Sports organizations
  • Event organizers
Products
  • Advertising support
  • Promotion activities

Competitive Advantage

Strengths

  • Overwhelming share in the North American market
  • Market responsiveness through diverse brand portfolio
  • Global R&D bases in the U.S., Europe, and Japan
  • Strong technological innovation and quality control
  • Brand strengthening through motorsports
  • Capital and business alliance with Mitsubishi Corporation
  • Multi-country production system
  • Extensive product lineup
  • Stable position in the domestic market
  • Ongoing sustainability initiatives

Competitive Advantages

  • No. 1 with 40% share in the U.S. large-diameter tire market
  • Premium tire brand 'PROXES' rollout
  • High-performance products based on technical alliances and proprietary technologies
  • Technology validation through motorsports participation worldwide
  • Global sales and production network
  • Diversified business structure and brand strength
  • Proactive corporate reforms for trust recovery
  • Foundation for market expansion in Asia and Europe
  • Advanced manufacturing technology for automotive parts
  • Product development system excelling in environmental performance

Threats

  • Risk of raw material price fluctuations
  • Intensifying international competition
  • Cost increases from stricter environmental regulations
  • Decline in brand image due to scandals
  • Impact of exchange rate fluctuations
  • Concerns over talent outflow
  • Price competition pressure in emerging markets
  • Decline in competitiveness from lagging technological innovation
  • Risk of supply chain disruptions
  • Geopolitical risks and trade friction

Innovations

2022: Serbia New Factory Commences Operations

Overview
Opened Europe's first automotive tire production factory and started local production.
Impact
Strengthened supply system and cost competitiveness in the European market

2023: PROXES Sport 2 Market Launch

Overview
Developed and launched next-generation high-performance tires for premium players.
Impact
Enhanced competitiveness in high value-added markets

2023: North America R&D Center Expansion

Overview
Advanced product design responsive to local needs through expanded development base.
Impact
Strengthened foundation for U.S. market share expansion

2020: Motorsports Technology Innovation

Overview
Developed tire technologies aiming for performance improvements in Dakar Rally and Nürburgring.
Impact
Dramatic improvements in durability and traction performance

2021: Environmentally Friendly Eco Tire Development

Overview
Launched eco tire products through improvements in low-fuel materials and manufacturing processes.
Impact
Contributes to environmental regulation compliance and fuel efficiency improvements

2024: Introduction of Digital Production Management System

Overview
Implemented advanced automation of tire production lines using IoT.
Impact
15% improvement in production efficiency and quality stabilization

2023: Launch of New SUV Tire OPEN COUNTRY G2

Overview
Achieved improved quietness and wear resistance through geometry enhancements.
Impact
Sales promotion effect in SUV market

2022: Launch of PROXES Comfort II S

Overview
Introduced tires with enhanced wear resistance for comfort-focused drivers.
Impact
Strengthened domestic customer base

2021: Promotion of Material Recycling Efficiency

Overview
Developed technologies to improve waste tire material reuse rate and reduce environmental impact.
Impact
Promotes sustainable resource utilization

2020: New Mixing Rubber Compound Development

Overview
Practicalized new rubber materials balancing wear resistance and durability.
Impact
Extended tire lifespan and performance improvements

Sustainability

  • Setting targets to reduce CO2 emissions in production processes
  • Development and promotion of waste tire recycling technologies
  • Active introduction of renewable energy
  • Expansion of low-environmental-impact material adoption
  • Environmental conservation activities in collaboration with local communities
  • Implementation of employee environmental awareness programs
  • Establishment and execution of sustainable procurement policies
  • Environmental assessment across the entire product lifecycle
  • Expansion of eco tire product lines
  • Environmental risk management in supply chains
  • Promotion of water resource usage efficiency
  • Hosting employee-participating social contribution events