Toyo to release new UHP, TBR tires this year

After rolling out the Open Country A/T III EV and M655LT, Toyo Tire Corp. is planning to roll out more products in the ultra-high-performance and truck/bus radial categories throughout this year, according to North American CEO Mike Graber.

How would you describe business thus far in 2024?

After a gradual start, business has gained momentum in Q2, instilling optimism for the remainder of the year. We have observed increased competitiveness across multiple segments, with many dealers selling down inventories they carried over from the previous year. Growth has normalized, returning to pre-pandemic levels, and we have been fortunate to have expanded our market share thanks to our valued partners.

Where do you see opportunities for growth the rest of the year?

Opportunities for growth for the remainder of the year appear promising, particularly in retail sales. Consumer demand for replacement tires remains steady, driven by several factors.

One significant factor is the aging car parc, with the average vehicle age reaching 12.6 years. As vehicles age, the need for tire replacement becomes more frequent, presenting a consistent demand for tires and other services.

How has inflation affected business?

Inflation is influencing consumer behavior and purchase decisions. Consumers are making more price-conscious decisions, seeking brands that can offer more value for their money, prioritizing quality and affordability in their purchases.

Toyo reported double-digit sales growth in North America last year. What do you attribute that growth to?

Toyo's sales growth can be attributed to several key factors. Firstly, the company's strong partnerships with distributors and retailers have played a significant role in expanding its market reach and visibility.

Additionally, Toyo's commitment to offering competitive and innovative product offerings has resonated well with consumers, driving demand and sales.

Moreover, Toyo has cultivated a loyal enthusiast customer base over the years, thanks to its focus on delivering high-quality tires that meet the needs and preferences of enthusiasts and everyday drivers alike. This combination of good partners, competitive product offerings, and a loyal customer base has fueled Toyo's growth and success in the North American market.

The Open Country line has been quite a hit. How do you sustain its popularity?

Sustaining the popularity of the Open Country line requires a continuous commitment to understanding and meeting the evolving needs of our valued customer base.

We achieve this by actively listening to feedback from our customers and using it to inform ongoing improvements to the Open Country product portfolio. By staying attuned to our customers' performance requirements, design expectations, and emerging vehicle trends, we ensure that our tire offerings remain relevant and aligned with their preferences.

How does Toyo's Ultimate Fighting Championship (UFC) sponsorship align with your strategy?

The UFC fan demographic shows a great interest in outdoor lifestyle/activities with high light-truck ownership, aligning with our Open Country products. Toyo Tires' UFC sponsorship tagline is "Tough People Love Tough Tires," which aligns with each brand's product attributes.

Toyo Tires is the UFC's longest-tenured sponsor, beginning in 2006, with the partnership reaching 20 years at the end of the current agreement. It has been a mutually beneficial partnership, as each brand has experienced strong growth during this period. The platform provides Toyo with a broad audience reach and awareness, as well as significant, measured, brand lift amongst UFC fans for brand preference, purchase consideration, brand loyalty, and brand trust.

Could you briefly describe your electric vehicle (EV) tire strategy?

This year, we introduced the Open Country A/T III EV, a dedicated EV-specific all-terrain tire designed to meet the requirements of purpose-built pickups tailored for adventure seekers. We see significant potential for all-terrain EV replacement tires that cater to the unique characteristics and driving requirements of electric pickups and SUVs in this evolving segment.

What are some of the pleasant surprises in the industry?

Despite fluctuations in economic conditions and consumer spending patterns, replacement tire sales have remained steady. Tires are an essential component of vehicle maintenance and safety, making it important for consumers to prioritize in the upkeep of their vehicles.

Do you expect to roll out any additional products in 2024?

Absolutely, in 2024, we're focused on introducing more advanced products that align with evolving vehicle trends. In addition to the new Toyo LTR and TBR products that came out earlier this year like the Open Country A/T III EV and M655LT, we are also planning to roll out even more product offerings in the UHP and TBR categories throughout this year such as the Proxes Sport A/S+ and M156 which will help drive growth and success in 2024 and beyond.

What are some of the challenges of the industry going forward?

While the industry faces various challenges, such as ongoing economic uncertainty and inflation, we remain committed to investing in our products and people to navigate uncertainties and capitalize on opportunities for growth and success in the dynamic tire market.

What do you want tire dealers to know about the company that they may not know?

We make tires people love. As simple as that sounds, it's what we do every day; It is our mission statement and the foundation for the core values we practice, which include: trust, learn, tenacity, empathy and ownership. We recognize that tire dealers are essential partners in delivering value to end consumers, and we prioritize building strong, collaborative relationships based on trust, transparency, and mutual success.