Korean Tire announced a revenue of 2.3178 trillion KRW and an operating profit of 420 billion KRW for Q2 2024, based on global consolidated financial results. Compared to the same period last year, revenue increased by 2.4%, and operating profit surged by 69.2%.
Despite the prolonged high inflation and high interest rate trends dampening consumer confidence globally, Korean Tire continued its growth under the leadership of Chairman Cho Hyun-bum of the Hankook & Company Group. Their proactive research and development (R&D), leadership in the electric vehicle tire market, and strengthened partnerships with high-performance vehicle manufacturers contributed to the success of their global premium brand strategy. Additionally, they are maximizing the competitiveness of premium products that reflect their top-tier global technology by deploying optimized sales strategies in various regions based on strengthened distribution infrastructure.
In the second quarter, the proportion of high-inch tires (18 inches and above) in the sales of passenger and light truck tires reached 46.3%, marking a growth rate that rose by 2.8 percentage points compared to the same period last year. By major regions, sales of high-inch passenger car tires were highest in China at 63%, followed by South Korea at 55.3%, North America at 54.6%, and Europe at 37.8%.
Korean Tire has secured top-tier global tire technology, meeting the performance and quality standards demanded by high-performance vehicles and global premium automakers. They are expanding their new tire supply partnerships with global manufacturers, providing new car tires for about 280 models from around 50 brands, including Porsche, Mercedes-Benz, BMW, Audi, as well as high-performance brands like Mercedes-AMG, BMW M, Audi RS, and electric vehicle brands like Tesla and BYD.
Furthermore, they continue to lead the global market for electric vehicle-specific tires. Following the launch of the world’s first full lineup of electric vehicle tires under the ‘iON’ brand in 2022, they have diversified their portfolio and now operate 236 specifications ranging from 16 inches to 22 inches. They are consistently expanding their supply of new tires for electric vehicles, including models such as Porsche ‘Taycan’, Audi ‘e-tron GT’, ‘Q4 e-tron’, BMW ‘i4’, Volkswagen ‘ID.4’, Hyundai ‘Ioniq 6’, Kia ‘EV3’, ‘EV9’, Tesla ‘Model Y’, ‘Model 3’, and BYD ‘Song Max’, ‘Yuan’.
Korean Tire is also strengthening marketing activities to establish a premium brand image both domestically and internationally. They are the exclusive supplier and official partner for racing tires in the world’s top electric vehicle racing series, the ‘FIA Formula E World Championship’, and the Lamborghini-affiliated racing competition ‘Lamborghini Super Trofeo’. They are expanding consumer touchpoints worldwide through sponsorships of popular sports events, including the ‘UEFA Europa League’ featuring top European football teams, as well as German football club ‘Borussia Dortmund’, and domestic professional baseball teams ‘Doosan Bears’ and ‘Hanwha Eagles’, and the K-League ‘Daejeon Citizen’.
Meanwhile, Korean Tire operates eight global production bases. In terms of manufacturing, tire production in the first half of this year increased overall compared to the same period last year, which is contributing to enhanced cost competitiveness and profitability. However, the competitiveness of their factories in South Korea and the United States is still relatively lower compared to those in other global regions, which remains a focus for ongoing profitability improvements.
By Lee Sang-jin daedusj@autodiary.kr