Tire maker Hankook has announced sales of €1,537.4 million and operating profit of €139.4 million for the first quarter of 2023, based on consolidated global financial results. Sales and operating profit both increased year-on-year by 17.5% and 51.5%, respectively.
Based on brand strategies, higher share of high value-added products and stable sales of electric vehicle tires, increased sales and operating profit despite tough economic environment such as global economic slowdown, intensity of competition and other factors. The success has been supported by an increase in original equipment tire offerings (thanks to the stabilization of semiconductor supplies) and an increase in global sales of replacement tires in regions such as Europe.
Hankook has achieved rapid growth in the global EV market by pioneering bespoke technologies and strategies even before the rapid proliferation of EVs. The manufacturer aims to increase the share of tires for electric vehicles in the total offer of original equipment for passenger cars and vans this year to almost 20% (in 2021, this share was 5% and in 2022, eleven %) .
In the first quarter of 2023, Hankook made continued progress with Original Equipment Premium Tire for new electric models, including the Volkswagen Electric ID, the C11 electric SUV from Chinese electric vehicle start-up Leapmotor. The Buzz and the bZ4X, Toyota’s first fully electric SUV.
In addition, sales of tires of 18 inches or more for passenger cars, that is, sales of products with particularly high added value, reached 43.5%.
By 2023, Hankook will work to further its leadership in the high-performance and electric vehicle tire markets. Since this season, the company has been the exclusive technical partner and tire supplier of the ABB FIA Formula E World Championship. Hankook is also the exclusive tire partner for the Lamborghini Super Trofeo. Thanks to these valuable collaborations, Hankook will further expand its position as a global premium brand and will continue to collect data to improve research and development.
Hankook aims to increase sales by more than 5% year-on-year and reach a sales share of 45% in passenger car tires from 18 inches. The company will focus its efforts on increasing sales in the most important markets, strengthening its cooperation with premium car manufacturers and maintaining leadership in the electric vehicle tire segment.