Hankook Tire – operating profit up 109% in Q1 2024

Hankook Tire & Technology has disclosed its financial performance for the first quarter of 2024, reporting sales of KRW 2,127.2 billion (£1.2 billion) and an operating profit of KRW 398.7 billion (£230.8 million) based on global consolidated financial results. Year over year, sales saw a modest increase of 1.1 per cent, while operating profit surged by 108.8 per cent.

The company also took the opportunity to confirm its support of Hankook & Company Group Chairman Hyunbum Cho, crediting his leadership as well as his decision to invest in research and development “in anticipation of the future mobility market” as factors behind the company’s continued growth despite facing challenges such as the global economic downturn and tensions in the Middle East. Additionally, Hankook Tire attributes its positive performance to a focus on the electric vehicle (EV) tyre market and the expansion of high-value product sales.

EV fitments & higher rim sizes

Having prioritised tyre technology for high-performance premium electric vehicles early on, Hankook Tire has established a prominent position in the global EV tyre market, leading even before the widespread adoption of EVs. The company’s iON tyre brand currently sells in 202 dimensions ranging from 16 to 22 inches.

In line with its strategic objectives, Hankook Tire aims to increase the proportion of EV tyres in its original equipment passenger car and light truck (PCLT) supply to 25 per cent this year. The company currently provides OE tyres for various electric vehicle models, including those from Porsche, Audi, BMW, Volkswagen, Hyundai, and Tesla.

High-inch passenger tires (18 inches and above) accounted for 46.8 per cent of PCLT tyre sales, marking a 3.3 percentage point increase year over year. Notably, China led in the share of high-inch passenger tyres, followed by Korea, North America, and Europe.