Toyo Tires Posts Record Q1 Sales Despite Profit Pressure From Raw Materials, Forex
- By Sharad Matade
- May 13, 2025
Toyo Tires reported record first-quarter sales of 135.5 billion yen ($880 million), marking a 6.2 percent increase year over year and reaching its highest level since adopting its current accounting period in 2013. Despite the top-line growth, operating income fell 13.7 percent to 22.4 billion yen due to rising raw material costs and foreign exchange headwinds.
“Strong sales of large-diameter tyres in North America drove revenue growth but couldn’t fully offset higher production costs,” said the company in its earnings statement. The Japanese tyre maker saw a 7.7 percent sales increase in North America, which remains its largest market.
Profit Squeeze
Ordinary income plunged 42.7 percent to 18.3 billion yen, while profit attributable to owners dropped 41.4 percent to 13.5 billion yen, primarily due to foreign exchange losses from the yen’s appreciation. The Japanese currency strengthened to 154 yen per dollar during the quarter, compared to 146 yen in the year-ago period.
The company maintained its full-year forecast, projecting annual sales of 585 billion yen, up 3.5 percent from FY2024. Operating income is expected to reach 85 billion yen, down 9.6 percent , with operating margin declining to 14.5 percent from 16.6 percent last year. The annual dividend forecast is 125 yen per share, up from 120 yen in the previous fiscal year.
“Assuming tariff impact can be absorbed with appropriate measures, earnings forecasts for FY2025 remain unchanged,” the company stated, maintaining its dividend payout ratio target of 30 percent or higher.
Production and Expansion
The tyre maker plans to increase production volume by 6 percent in FY2025 compared to the previous year, with significant growth in both Japanese and European operations. First-quarter global production volume was 59,100 tons, representing 98 percent of the previous year's level.
Capital investment for FY2025 is projected at 35.6 billion yen, up from 25.6 billion yen in FY2024, signalling continued expansion despite market headwinds. The company has invested 194 billion yen in capital expenditures over the past five years.
Market Conditions and Raw Materials
Raw material costs continue to pressure margins, with the company projecting a negative impact of 10.5 billion yen for FY2025. Natural rubber price increases are expected to cost 7.4 billion yen, while petroleum products will add 2.0 billion yen in costs, and other materials will contribute 1.1 billion yen to the cost pressure.
First-quarter sales volume showed strong recovery in the Japanese replacement tyre market, reaching 97 percent of the previous year’s level. In comparison, North America demonstrated robust growth at 105 percent year-over-year.
Product Innovation and Corporate Initiatives
The company recently launched premium tyres for high-roof kei cars in Japan with enhanced wet grip performance. These tyres feature eco-friendly materials that improve wet braking performance by 12 percent while reducing rolling resistance by 9 percent.
In March, the company introduced new SUV tyres designed specifically for quiet city driving that meet the “Low Car Exterior Sound Tyres" voluntary standard established by the Japan Automobile Tyre Manufacturers Association.
ETRMA Speaks On Automotive Sector Interpretation Guide Of Data Act
- By TT News
- July 01, 2025
The European Commission’s Industrial Action Plan for the automotive sector included plans to publish Guidance on in-vehicle data alongside the implementation of the Data Act. In response, the European Tyre and Rubber Manufacturers’ Association (ETRMA), alongside other automotive industry groups, has developed an Automotive Sector Interpretation Guide of the Data Act to foster a common understanding ahead of the regulation’s application. This joint effort has helped clarify critical definitions and regulatory interfaces while also incorporating essential tyre-specific considerations – a step ETRMA strongly supports.
Despite this progress, the Data Act’s objectives may fall short without additional measures. Key solutions – such as human-machine interface (HMI) access for user consent and digital ID federation to enable secure, efficient data sharing within a unified European data space – require further exploration under sector-specific regulation. ETRMA remains dedicated to ensuring the Data Act’s implementation promotes fair, non-discriminatory access to in-vehicle data. The association will continue pushing for enforceable rules that guarantee real-time, secure and efficient access to relevant data, safeguarding innovation and competitiveness in the automotive and tyre industries.
Bridgestone India Strengthens Retail Presence with New Select Store In Nashik
- By TT News
- June 30, 2025
Bridgestone India, a key subsidiary of the global Bridgestone Group and a leader in tyres and mobility solutions, has expanded its premium retail network with the launch of Bridgestone Select Store – M/s Nashik Tyres and Services. The store was inaugurated by Rajarshi Moitra from Bridgestone India, reinforcing the company’s commitment to delivering innovative, customer-centric tyre retail experiences across the country.
Strategically located in Nashik, the store features modern infrastructure and a premium service setup, positioning it as a one-stop destination for tyres and related services in the region. Recognising that tyres are the sole contact point between a vehicle and the road, Bridgestone emphasises safety, performance and driving confidence through its Select stores. These outlets not only help customers choose the right tyres but also enhance their ownership experience with expert guidance and high-quality services.
With over 900 Select stores nationwide, Bridgestone India has established a premium retail network that goes beyond tyre sales to offer a superior, service-driven experience. The expansion of M/s Nashik Tyres and Services further strengthens Bridgestone’s mission to bring world-class tyre solutions closer to customers, reinforcing its pan-India presence with a focus on innovation and customer satisfaction.
Moitra said, “At Bridgestone India, we are committed to redefining the tyre buying experience through our Select stores. As we continue to expand our footprint and enhance manufacturing capabilities our goal is to provide premium products, services and customer experience.”
NEXEN TIRE Sustainability Report Highlights Progress
- By TT News
- June 30, 2025
Leading global tyre manufacturer NEXEN TIRE has released its 2024/25 Sustainability Report, demonstrating its commitment to transparent ESG disclosure in line with international standards. This year’s report marks a milestone as it includes consolidated performance data from 10 global subsidiaries, enhancing the company’s enterprise-wide sustainability reporting.
In environmental sustainability, NEXEN TIRE has advanced its carbon management strategy by expanding greenhouse gas (GHG) emissions tracking. The company completed a third-party verified inventory covering Scope 1, 2 and all 15 Scope 3 categories, enabling precise identification of carbon hotspots and targeted reduction initiatives. Additionally, the company is accelerating the development of sustainable materials, evaluating 23 renewable and recycled options across 10 categories. Through proprietary technology, NEXEN TIRE now produces tyres containing up to 70 percent sustainable content. Biodiversity efforts have also intensified, with the company adopting TNFD and LEAP frameworks to assess nature-related risks. An ecological survey around its Changnyeong plant identified protected zones and endangered species habitats within a 50-kilometre radius.
On the social front, NEXEN TIRE celebrated a decade without workplace accidents, a result of proactive safety investments, including facility upgrades, risk assessments and 24-hour disaster monitoring. Enhanced fire prevention systems earned the company the Excellence Award at the 1st Safety Culture Innovation Awards.
In governance, NEXEN TIRE strengthened board diversity by appointing a new female independent director, with independent directors now comprising 62.5 percent of the board. The company also expanded its TISAX certification to eight sites, maintaining zero data breaches for three consecutive years. These efforts underscore NEXEN TIRE’s commitment to sustainable and responsible business practices.
John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE, said, “As the industry undergoes rapid transformation driven by electrification, AI and sustainability, NEXEN TIRE is embracing ESG leadership as a core pillar of future competitiveness. Our commitment to responsible innovation and transparency will guide us through the next era of sustainable mobility.”
ZC Rubber to Deploy 3.93 Billion Yuan IPO Proceeds for Subsidiary Expansion
- By TT News
- June 30, 2025
Chinese tyre manufacturer Zhongce Rubber Group Co., Ltd (ZC Rubber) will inject 3.93 billion yuan ($541.3 million) of proceeds from its February initial public offering into wholly owned subsidiaries to fund expansion projects across its production network.
The company’s board approved the deployment of the raised capital through a combination of loans and equity injections to five subsidiaries, according to a regulatory filing. The move represents the full utilisation of net proceeds from ZC Rubber’s IPO, which raised 4.07 billion yuan through the issuance of 87.4 million A-shares at 46.50 yuan each.
Hangzhou Chaoyang Rubber Co Ltd, the group’s largest subsidiary by funding allocation, will receive up to 1.7 billion yuan in loan financing to support its high-performance radial tyre green 5G digital factory project. The facility represents ZC Rubber’s largest single investment among the five planned initiatives.
The company will also provide 850 million yuan to Zhongce Rubber (Tianjin) Co., Ltd. for upgrades in the high-end green tyre industry. At the same time, Zhongce Rubber (Thailand) Co., Ltd. will receive an equivalent amount through a direct capital injection to expand its radial tyre manufacturing capabilities.
Smaller allocations include 352.68 million yuan to Hangzhou Zhongce Qingquan Industrial Co., Ltd. for the production of all-steel radial truck tyres and 180 million yuan to Zhongce Rubber (Jiande) Co., Ltd. for the expansion of its workshop at the JianDe facility.
The funding deployment marks a revision to Zhongce’s original IPO prospectus, which had earmarked 4.85 billion yuan across the five projects. The company has adjusted its plans to align with the actual net proceeds available after deducting underwriting fees and other costs.
Interest rates on subsidiary loans will be benchmarked against comparable bank lending rates, with early repayment options available. The company stated that the funding structure would facilitate project execution while maintaining regulatory compliance through designated account supervision.
Zhongce received approval from China’s securities regulator for its IPO on 26 February, marking the completion of a listing process that positioned the company amongst China’s leading tyre manufacturers seeking to expand production capacity and technological capabilities.
The subsidiary funding initiative received backing from CITIC Securities, the company’s listing sponsor, and external auditors, with both parties indicating no objections to the proposed capital deployment structure.
ZC Rubber's shares have traded on the Shanghai Stock Exchange since its February debut, with the company targeting enhanced production efficiency and market positioning through its post-IPO investment programme.
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