Kumho Tire targets €3.2bn sales amid capacity expansion drive

Seoul – Kumho Tire is eyeing capacity expansion to meet its sales target of KRW5,000 billion (€3.2 billion) in 2025, up 15.5% year-on-year.

The Korean tire maker expects to increase its global tire production capacity to 65 million units in 2025, up from 62 million units as of April 2024.

The increase will be achieved through improving facility efficiency and securing additional space at its eight global plants in Korea, China, the US, and Vietnam, Kumho said 29 April.

Furthermore, the tire maker is currently reviewing the construction of a new European plant, with Poland, Portugal, and Serbia mentioned as strong candidates.

For the first quarter of 2025, Kumho posted a 15.5% year-on-year rise in sales to KRW1,200 billion, with operating profit flat at KRW144.8 billion.

Marking its sixth consecutive quarter of sales above KRW1,000 billion, the growth was driven by expansion in OE tire supply and high-margin replacement tires.

Operating profit margin reached 12.1% during the quarter, helped by higher sales of premium and high-inch products.

In addition to the sales target of KRW5,000 billion, Kumho said it aims to raise the proportion of 18-inch and larger tire sales to 46% of overall sales, and secure over 26% of its global OE sales from electric vehicle (EV) tires.

In the first quarter, the company reported that high-inch tire sales accounted for 42.6% of total sales, while EV tire OE sales reached 17.9%, driven by supply to an expanding range of new vehicle models.

“This year, Kumho Tire plans to step up its push into the premium market,” said the company.