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.

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Celebrating a remarkable 30-year alliance, FC Internazionale Milano and Pirelli have reaffirmed one of the most enduring partnerships in global football. This significant milestone underscores a relationship built on shared values of excellence, tradition and a profound passion for sport.

To commemorate this occasion, a special-edition PIRELLI cap has been released. Limited to just 1,995 units – a direct nod to the year the partnership began – this collector’s item merges the iconic symbols of both brands. The cap features the Pirelli logo prominently on the front, accompanied by the Inter crest on the side. A distinctive Biscione motif extends elegantly across the design, seamlessly uniting the identities of both institutions. The number 30 is also featured, highlighting the three decades of continuous collaboration.

This exclusive accessory is now available for purchase online and at Inter Stores Milano, including the Castello and San Siro locations. More than just merchandise, the cap serves as a tangible symbol of a deep and historic bond between two legendary names.

The celebratory product will also be prominently featured during a symbolic sporting weekend. It will be showcased both at the Netherlands Grand Prix and during Inter’s Serie A match against Udinese on 30-31 August, linking two major events that reflect the partnership’s dual commitment to elite football and high-performance motorsport.

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The 2024 Qingdao Economic Achievements were announced recently, celebrating the city's top corporate performers and emerging leaders. Among the honourees were MESNAC Co., Ltd., named 2024 Qingdao Model Enterprise, and Chen Haijun, General Manager of Qingdao Highway IOT Technology Co., Ltd., who received the 2024 Qingdao Economic Rising Star award.

MESNAC earned its recognition by achieving substantial growth in both revenue and profit over the past year. The company has reinforced its position as an industrial leader by driving innovation in intelligent manufacturing and supporting Qingdao’s identity as a global rubber industry hub. Through its focus on digitalisation, platform-based strategies and global expansion, MESNAC continues to elevate both its own operations and the broader sector.

As head of Highway IOT, Chen Haijun has steered the firm to the forefront of the Industrial Internet revolution. The company is known for pioneering RFID intelligent tire technology and has contributed to multiple international and national standards. Its solutions are now deployed across a range of industries – from lithium battery production and logistics to rail transit – showcasing a versatile and growing impact on technological modernisation.

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India's tyre industry has warned that steep new US tariffs could severely damage the country's export momentum to its largest overseas market, as manufacturers face duties of up to 50 percent compared with lower rates for regional competitors.

The Automotive Tyre Manufacturers' Association (ATMA) stated on Wednesday that the tariff increases place Indian exporters at a significant disadvantage compared to rivals from China, Thailand, Vietnam, Cambodia, and Indonesia, which continue to benefit from substantially lower duties.

Under the new structure, Indian tyre exports will face tariffs of 50 percent on most categories and 25 percent on specific segments, the industry body said.

The United States accounts for 17 percent of India's tyre exports across more than 170 countries. In the financial year 2024-25, India's total tyre exports exceeded INR 250 billion for the first time, with the US market contributing over INR 43 billion.

"The Indian tyre industry has invested over INR 280 billion in recent years to expand both greenfield and brownfield capacities to meet rising domestic and global demand. Hike in US tariffs will severely constrain the ability of Indian manufacturers to sustain export momentum established in the last few years, particularly since the US is our largest export destination," said Arun Mammen, Chairman of ATMA.

The industry is already grappling with competitive pressures from inadequate government support schemes, ATMA said. The current RoDTEP (Remission of Duties and Taxes on Exported Products) rates for tyres stand at 1.3 per cent and 0.8 per cent under Advance Authorisation, which is well below the three per cent offered under the previous MEIS (Merchandise Exports from India Scheme).

ATMA has called for RoDTEP benefits to be increased to four percent and extended to tyre exports under Advance Authorisation. The association also seeks to raise duty drawback rates to 10 percent from the current 3.6 percent, arguing that existing rates fail to offset duties on imported raw materials ranging between 7.5 percent and 20 percent.

The sector faces additional challenges from a domestic natural rubber shortage, forcing manufacturers to import nearly 40 percent of their requirements for this critical raw material. ATMA has urged the government to permit duty-free imports equivalent to the demand-supply gap, citing recent customs duty exemptions on raw cotton imports as precedent.

"Developing an export market requires years of sustained effort and investment. While the Indian tyre industry has the resilience to explore new geographies, this is a time-consuming process. Immediate policy support will be critical to ensure that India does not lose ground in a highly competitive global market," Mammen added.

The association has also emphasised the need for enhanced research and development incentives, alongside advanced manufacturing support, to strengthen the sector's long-term global competitiveness.

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Chinese tyre manufacturer targets 3.3 million all-steel radial tyres annual capacity

Sailun Group, a global leader in tyre manufacturing, will invest USD 239 million to expand production at its newly acquired Shenyang facility, aiming for an annual output of 3.3 million all-steel radial tyres and 20,000 tonnes of off-road tyres.

The Shanghai-listed company stated that the project would be implemented through Sailun Xinheping (Shenyang) Tire Co., Ltd., which it acquired from Bridgestone Corp. earlier this year through its wholly-owned subsidiary, Sailun (Shenyang) Tire Co., Ltd.

Of the total investment, USD 177 million will be allocated towards construction costs, with the remainder allocated for working capital and interest expenses during the 18-month construction period, the company stated in a regulatory filing.

To fund the expansion, Sailun Shenyang will inject up to USD 73 million into Sailun Xinheping, raising the subsidiary's registered capital from USD 174 million to a maximum of USD 246.8 million.

The project is expected to generate annual operating revenue of USD 461 million and a net profit of USD 32.4 million upon completion, representing a net profit margin of 7.02% and an investment payback period of 5.6 years, according to company projections.

Located in Shenyang Economic and Technological Development Zone in northeastern China's Liaoning province, the facility will target both domestic and international replacement and original equipment manufacturer markets.

"Shenyang, located in Northeast China's industrial hub and close to major automobile manufacturers, is favourable for tyre industry development," the company said in its announcement.

Sailun stated the expansion will optimise production capacity and strengthen supply capabilities. The close proximity of the Xinheping and existing Shenyang plants is expected to create operational synergies and lower costs.

The investment remains subject to approval from relevant national authorities. The company warns that changes in market conditions, the financing environment, policies, and economic outlook could affect the project timeline and targets.

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