In the Toyo Tires 2025 integrated report, the company reported that it closed out 2024 with record-high profits and strong sales of premium products. But the company’s real long-term value for dealers may lie in what it’s building behind the scenes through targeted investments in sustainability and digital transformation (what the company calls DX). These two pillars of Toyo Tires’ Medium-Term ’21 Plan are now fully operational and are expected to accelerate in 2025 and beyond as part of the company’s overall dealer strategy.
Sustainability is No Longer Optional
Toyo is no longer treating ESG as a side project. Instead, the company says it’s embedding sustainability into every aspect of product development, manufacturing, and supply chain management. In 2024, Toyo:
- Achieved a 46% reduction in Scope 1 and 2 emissions compared to 2019;
- Introduced internal carbon pricing (ICP) at ¥10,000 (approx. $66) per ton of CO₂;
- Increased the ratio of sustainable raw materials per tire to 28%;
- And secured ISCC PLUS certification at two Japanese plants, enabling verified handling of sustainable materials.
What this means for dealers: As fleet and consumer customers demand more environmentally responsible products, Toyo says it will be ready with a growing portfolio of tires engineered with recyclability, renewable inputs, and low rolling resistance in mind. Dealers who can communicate the value of these products (especially for fleets focused on ESG reporting or consumers driving EVs) will have a distinct sales advantage.
Additionally, regulations in Europe (like the Ecodesign for Sustainable Products Regulation and the Deforestation-Free Products Regulation) could begin to shape U.S. expectations. Toyo is responding now, which helps insulate dealers from future compliance risks tied to imported SKUs.
EV-Specific Product Development
In 2024, Toyo advanced its EV tire portfolio, which includes:
- Studless and ribbed tires for small EV trucks;
- Tire designs that address higher torque loads and lower noise expectations of EVs;
- And the expansion of T-MODE, Toyo’s proprietary tire design platform, allowing faster and more precise development of next-gen fitments.
What this means for dealers: As EV adoption continues—particularly in urban and suburban markets—dealers will need access to tires engineered for these vehicles. Toyo is positioning itself to offer both mainstream and niche EV solutions, including products that tackle low noise, longevity under load, and energy efficiency. Expect more SKUs in this space to appear in 2025 as Toyo builds on 2024 R&D momentum.
Digital Transformation in the Toyo Tires Dealer Strategy
Toyo says its DX strategy goes beyond buzzwords. In 2024, the company says it:
- Began a full renewal of its ERP system;
- Built internal DX education programs for staff across Japan, Europe, and North America;
- And positioned its global SCM division to dynamically route production and supply in response to market changes.
What this means for dealers: Improved forecasting and resource allocation mean, in general, more accurate shipments, better fill rates, and faster responses to dealer needs. This is especially important for high-demand SKUs like large-diameter light truck tires. There, Toyo increased U.S. production in 2024 to match market trends.
While Toyo hasn’t formally rolled out dealer-facing digital tools yet, its internal systems are being designed for faster visibility and reporting. That could translate to improved inventory planning and ordering cycles, more timely updates on SKU availability or backorders, and potential digital integrations in the future for preferred dealer partners.
Risk Management and Long-Term Value in Toyo Tires’ Dealer Strategy
Toyo says its 2025 strategy is built to withstand volatility. The company proactively shifted low-inch tire production out of its U.S. plant to make room for higher-value light truck SKUs and ramped up production at its Serbia facility to support both Europe and North America.
Toyo also says it sold off unnecessary strategic shareholdings to optimize capital, signaling a disciplined and resilient financial strategy that benefits long-term dealer relationships.
What this means for dealers: Dealers can likely expect more stable pricing, consistent delivery, and stronger marketing support.
