Hankook Tire announces 2023 Q1 financial results

Seoul, South Korea – Hankook Tire & Technology (Hankook Tire) has announced sales of KRW 2,104.0 billion and an operating profit of KRW 190.9 billion based on global consolidated financial results for the first quarter of 2023. Both sales and operating profit increased by 17.5% and 51.5% respectively year-over-year (YoY).

Based on premium brand strategies that include increasing the proportion of high-value-added products and securing the sales of tires exclusive to electric vehicles (EVs), the sales and operating profit of Hankook Tire achieved growth despite a context of difficult business conditions, such as the global economic downturn, intensifying competition and more. This performance was supported by the increase in supply of original equipment (OE) tires with the stabilization of semiconductor supply and the rise of global sales of replacement tires in regions like Europe.

Hankook Tire has been growing rapidly in the global electric vehicle market by pioneering customized technologies and strategies even before the widespread commercialization of EVs. The company is now leading the market, raising its target proportion of EV tires to about 20% this year out of the total supply for passenger car and light truck OE tires – which recorded 5% in 2021 and 11% in 2022.

In the first quarter, Hankook Tire maintained steady progress by providing premium tires for electric vehicles, including Chinese electric vehicle startup Leapmotor’s ‘C11 electric SUV’, Volkswagen’s electric minivan the ‘ID. Buzz’, and Toyota’s first fully electric SUV ‘bZ4X’.

In addition, the sales portion of 18-inch and higher passenger car tires – which are high-value-added products – reached 43.5%, up by 4.5%p YoY. By region, there was an increase of 4.6%p in Korea (53.9%), 4.0%p in Europe (31.9%), 6.6%p in North America (54.2%), and 7.2%p in China (56.3%), showing consistent growth across all global regions.

In 2023, Hankook Tire will continue to sustain its leadership in the EV tire and high-performance tire markets. Starting this season, the company has been selected as the official partner and exclusive tire supplier of the world’s leading electric vehicle motorsport championship, the ABB FIA Formula E World Championship (Formula E). The company is also the exclusive tire partner of the Lamborghini Super Trofeo, racing series organized by the Italian supercar brand Lamborghini. Through these valued partnerships, Hankook Tire will further enhance its position as a premium global brand and continue to gather data to enhance research and development.

Hankook Tire, with the goal of growing sales by more than 5% YoY and achieving 45% sales for 18-inch and higher passenger car tires, will focus on increasing sales in major markets, strengthening partnerships with premium carmakers and sustaining leadership in the electric vehicle tire segment. Also, the company seeks to raise the portion of OE tire supply for electric vehicle models up to 20% out of total supply for passenger car and light truck OE tires.