Hankook Tire’s Q1 figures show increased turnover and operating profit

Hankook’s 2021 Q1 financial results show consolidated global sales rising 12.6 per cent YoY to KRW 1.61 trillion (EUR 1.203 million) and an operating profit of KRW 186 billion (EUR 138 million); an increase of 75.5 per cent YoY.

As the global market recovers from the impact of the pandemic, Hankook’s business has also been steadily recovering since the second half of 2020. The company is seeing sales stabilise in several major markets that include Europe, North America, and China, particularly in the high-inch tyre sector (tyres with diameters 18 inches or higher.) Global sales of high-inch tyres accounted for 38 per cent of total tyre sales, which is up 4 percentage points compared to the same period last year.

Sales of replacement tyres also increased as the market demand in the U.S. and Europe continued to improve. China likewise showed a rise in the demand of replacement tyres along with healthy sales of original equipment (OE) tyres, indicating an upturn in the production of automotive vehicles. High-inch tyres in China increased 13 percentage points to 40 per cent YoY.

Despite the slowdown last year, Hankook continues to remain dedicated to its commitment to strengthen its reputation as a premium brand. The company is also continuing to secure partnerships with global carmakers to expand the number of OE contracts, as demonstrated by the recent announcement to supply its ultra-high performance tyre, the Ventus S1 evo 3 for the Porsche 718 Boxster and the Porsche Cayman. The tyre maker is also actively expanding partnerships for EV fitment, as demonstrated by the agreement to supply tyres factory-installed on Porsche’s first high-performance electric sports car, Taycan, as well as the NIO ES6 and EC6, flagship models made by China’s fast-growing electric vehicle brand.

Going forward, Hankook “seeks to maintain the growth of its high-inch tyre sales in major markets and add OE partnerships with an already-robust portfolio.” Growth in the electric vehicle tyre sector will also be one of the primary concentrations, as the company aims to innovate in the EV tyre sector “as well as in future technologies and solutions that transform consumers’ imaginations into reality.”