Hankook increases sales and operating profit

Hankook maintained a strong performance, increasing sales by 2.4 percent and operating profit by 69.2 percent year-on-year (YoY).

Premium tyre manufacturer Hankook posted KRW 2,317.8 billion (approx. EUR 1,570.4m) in sales and KRW 420 billion (approx. EUR 284.5m) in operating profit for the second quarter of 2024, based on global consolidated financial results. Sales increased 2.4 percent year-on-year (YoY), and operating profit saw a YoY increase of 69.2 percent.

Despite prolonged high inflation and elevated interest rates, which dampened consumer sentiment throughout the global economy, Hankook has maintained an upward growth trajectory. This follows a variety of initiatives based on the premium brand strategy, including proactive research and development (R&D), leadership in the electric vehicle (EV)-exclusive tyre market, and strong partnerships with high-performance automotive manufacturers under the leadership of Hankook & Company Group Chairman Hyunbum Cho. Additionally, by implementing a region-specific sales strategy based on expanded sales channels and an enhanced distribution infrastructure, Hankook made the most of its technological expertise and kept its premium products competitive.

In the second quarter, high-inch tyres, measuring at least 18 inches, comprised 46.3 percent of all passenger car and light truck (PCLT) tyre sales, representing a YoY increase of 2.8 percentage points (pp). High-inch car tyres accounted for 63 percent of total sales in the Chinese market, the highest proportion of any region, and 55.3 percent in South Korea, followed by 54.6 percent in North America and 37.8 percent in Europe.

Hankook has secured top-tier global tyre technology, satisfying the performance and quality standards required by premium and high-performance automotive brands. The company is continuously expanding its partnerships as an original equipment (OE) tyre supplier, collaborating with renowned brands such as Audi, BMW, Mercedes-Benz and Porsche, as well as performance divisions including Audi Sport, BMW M and Mercedes-AMG. Additionally, Hankook provides tyres to leading electric vehicle manufacturers such as Tesla and BYD. Currently, the company supplies OE tyres for approximately 280 models from nearly 50 global automakers.

In the EV-exclusive tyre segment, Hankook is continuing to make remarkable progress. Since launching the world’s first full line of EV-exclusive tyres in 2022 under the iON brand, the company has diversified the brand’s portfolio, covering 236 specifications ranging in size from 16 inches to 22 inches. It is also expanding supply of OE tyres to EV models including the Porsche Taycan, Audi e-tron GT and Q4 e-tron, BMW i4, Volkswagen ID.4, Hyundai Ioniq 6, Kia EV3 and EV9, Tesla Model Y and Model 3, and BYD Song Max and Yuan.

The company is also strengthening its domestic and global marketing activities to enhance its position as a premium brand. Hankook is the exclusive supplier and official partner of the ABB FIA Formula E World Championship, the world’s premier EV racing competition, as well as the Lamborghini Super Trofeo racing series hosted by Italian supercar brand Lamborghini Squadra Corse. It also has partnerships with popular sports organisations around the world. These include the UEFA Europa League, which comprises top European professional football clubs and the prestigious German football club Borussia Dortmund.

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