Hankook profits up 50% as EV tire segment grows

Seoul – Hankook Tire has reported a strong first quarter with both sales and operating profit recording double-digit increases.

The Korean tire and technology group saw operating profit rise 51.5% year-on-year to KRW 191 billion (€140 million), on 17.5% higher sales of KRW2,100 billion.

Hankook linked the growth to its ‘premium’ strategy which targets increased sales of higher-value products, including electric vehicles (EVs) tires.

The first quarter gains were achieved against a backdrop of “difficult business conditions, such as the global economic downturn and intensifying competition.”

In particular, OE sales supported growth, as semiconductor supply stabilised, while replacement volumes increased in Europe, added Hankook's 12 May report.

Hankook went on to claim that it is now “leading the EV tire market” – raising its target proportion of EV tires to about 20% of total 2023 passenger car and light truck OE tire sales.

The new target figure compares to EV tire-sales proportions of 5% and 11% achieved by Hankook in 2021 and 2022 respectively.

In the first quarter, Hankook gained OE approvals for: Chinese EV start-up Leapmotor’s C11 electric SUV; VW’s ID. Buzz electric bus; and Toyota’s first fully electric SUV, the bZ4X.

On the ‘high-value’ front, Hankook increased sales of 18-inch and higher passenger car tires by 4.5 percentage points to account for 43.5% of total sales in this segment.

The Korean group said it had now set itself a target of growing large rim-sized tires by more than 5% year-on-year and achieve 45% share of the total revenue.

To that end, the tire maker aims to increase sales in ‘major markets’, strengthen partnerships with premium car makers and continue to advance its EV strategy.