Kumho aiming to re-take Chinese market share
Kumho Tire is aiming to increase its sales in China by 30 per cent in 2015. According to online reports originally published by the Yonhap News, Kumho plans to re-take market share lost in the world’s largest auto market.
Kumho, which continues to make large numbers of tyres in China, experienced difficulties in the domestic market after 30,000 of its China-produced tyres were recalled in 2011. Nevertheless, Kumho’s sales in China amounted to $415 million last year.
Speaking at the Auto Shanghai 2015, Kumho Tire vice president Cho Jae-suk told reporters: “We are targeting to sell 12 million tyres in the Chinese market this year. After the recall, we’ve thoroughly checked our production facility and reviewed the market situation again…the recall proved to be an opportunity for us to improve product quality”.
Kumho’s operating profit to sales ratio in China was 5.3 per cent last year, up from the 2.9 per cent in 2013, the company is quoted as saying. In 2015, Kumho aims to increase this percentage “by a wide margin”.