Toyo increases capacity, unveils Celsius II

COSTA MESA, Calif.—Toyo Tire U.S.A. Corp. entered the year armed with more capacity thanks to a new plant in Serbia, and in January, unveiled its newest product, the Celsius II all-weather touring tire.

Toyo said demand has remained strong across its passenger, light truck and truck/bus tire lines, though expectations have settled a bit in the last year as the market returns to pre-pandemic growth.

"Demand during the pandemic never stopped. Our share in light truck, passenger tire and TBR rose beyond pre-pandemic levels," Tim Chaney, vice president of marketing at Toyo Tire U.S.A., said.

The logistical challenges of the pandemic have eased, and Toyo said it has been able to find a good supply "pace" as shipments from Asia have become more reliable.

"(In 2022), the business was going really strongly and supply was somewhat restricted, but we held our position with most of our key dealers pretty well, and they stayed with us," Michael Graber, president and CEO at Toyo U.S.A., said.

"The consumer demand has remained high, so the pull-through demand from the distributors has been good.

"Demand is there and (our) capacity is growing, and we're really excited about 2023 and beyond," Graber said.

Tire Business sat down with Graber and Chaney at the SEMA Show in November to talk about the future.

Graber said the market is "holding the spike" (of 2020-21) and growing from there.

"I wouldn't say it's leveling off, but the growth is returning to pre-pandemic levels," he said. "We expect 2-percent to 3-percent growth in each of our segments year-over-year instead of the double-digit growth we were seeing in 2020 and 2021."

Toyo Tire Corp. started to bring its $450 million plant in Indija City, Serbia, online last year. At full capacity, the facility will be capable of producing around 5 million tires annually. Toyo plans to supply both the North American and European markets from the new factory.

"It's going to increase significantly our ability to supply the U.S. and North America," Graber said.

"The capacity in Serbia will also take pressure off existing plants to build more of the North American sizes in North America. … We'll get a lot of supply, but we'll also be able to move some things around."

He said the Serbian plant ultimately will focus on building Toyo's most globally used lines, like its passenger tires, to free up North American production to build domestic products, like the Open Country light truck line.

In North America, Toyo produces tires at a plant in White, Ga., which also builds tires for Toyo's Nitto associate brand.

More recently, Toyo rolled out the Celsius II, a second-generation all-weather touring tire that will replace the existing Celsius and Celsius CUV models.

The Celsius II offers improved ice and snow traction over a typical all-season tire for the convenience of year-round use, Toyo said. It carries the three-peak mountain snowflake symbol, signifying it's qualified for severe snow conditions.

Toyo called the tire a "single-stocking solution" for passenger cars and CUVs with 76 Euro-metric sizes covering 15- to 22-inch rim diameters, and S, T, H, V and W speed ratings.

The lineup includes sizes for sedans and CUVs from makes including Chevrolet, Ford, Honda, Nissan, Subaru and Toyota. The most popular sizes are available now with additional sizes to follow in subsequent months.

Last year at SEMA, Toyo released an addition to its Open Country light truck tire lineup with the R/T Trail. The R/T Trail is positioned to be more aggressive than the A/T III but offers better highway performance than the R/T (introduced in 2014).

Toyo did not indicate there would be other new launches this year; instead Graber said the company will be focused on distributing the added capacity from Serbia.

When it comes to electric vehicles (EVs), Graber said, "they're coming," and Toyo is "actively developing" purpose-built tires to sell in the EV market in the future.

The company said it is keeping a watchful eye on inflation and consumer spending.

Chaney said he believes a dip in discretionary spending may not impact Toyo as much as other brands because of the company's marketing focus on car enthusiasts who are willing to spend for a brand they believe in.

"This is what they spend their money on, and Toyo is a go-to brand for them," Chaney said.

Toyo is focused on "enthusiasts," a term that has expanded over the years to include those who love the outdoors as well as automotive enthusiasts.

"Our fundamental marketing strategy remains the same year after year," Chaney said. Toyo caters to car enthusiasts and those passionate about the outdoors, actively engaging at a "grassroots" level through events and sponsorships. That engagement helps the company develop its products and increase brand awareness.

"We're a full-line manufacturer, and if we support our dealers with the right materials, tools and programs, it influences them to sell our products as well," Chaney said.

Graber said the experienced team at Toyo is really engaged with the community it serves.

"And we're smart enough to listen to the guys who know our audience," he said. "Really, it's a part of our strategy for how we go to market, what we develop and what we work on and invest in."

Graber, who started with the company as a salesman in 2013, was named president and CEO last year.

"I was genuinely humbled when I got the chance to take this job," he said. "We have a lot of strong people that work here that love the company, love the brand and love what they do."

Toyo also recently announced it has moved into a new U.S. headquarter in Costa Mesa. The new address is 3565 Harbor Blvd., Costa Mesa, CA 92626.