Hankook aiming to almost double EV tyre supplies to OEMs

Hankook Tire anticipates that tyres for electric vehicles will account for around 20 per cent of its original equipment passenger car and light truck tyre deliveries in 2023. This figure represents a notable increase over prior years: EV tyres accounted for 11 per cent of OEM car and light truck shipments in 2022 and just five per cent in 2021.

Recent original equipment deals for EVs include Hankook tyres for the VW ID. Buzz and, in China, the Toyota bZ4X and the Leapmotor C11 electric SUV.

The company speaks of a “leading position” in the EV tyre market and states that “premium brand strategies” such as business with manufacturers of electric cars has helped it to grow sales and operating profit “despite the backdrop of difficult business conditions.” Hankook Tire’s sales rose 17.5 per cent year-on-year in Q1 2023, to KRW 2,104.0 billion (£1.3 billion). Operating profit increased 51.5 per cent year-on-year, to KRW 190.9 billion (£114.1 million).

Another component of the abovementioned premium strategy is sales of 18-inch and larger car tyres – which Hankook Tire considers “high-value-added products”. Global sales of these reached 43.5 per cent of total passenger car tyre sales in Q1 2023, up 4.5 percentage points year-on-year. By region, the increase was 4.6pp in Korea (53.9%), 4.0pp in Europe (31.9%), 6.6pp in North America (54.2%), and 7.2pp in China (56.3%).

Hankook Tire’s goal for 2023 is to grow sales by more than five per cent year-on-year and achieve 45 per cent sales for 18-inch and higher passenger car tyres. To achieve this, the company says it will “focus on increasing sales in major markets, strengthening partnerships with premium car makers and sustaining leadership in the electric vehicle tyre segment.”