Hankook targets EV, premium tire growth in short-term “value-up plan”

Seoul – Hankook Tire & Technology has outlined a short-term growth strategy centred on EV tires, premium products and capacity expansion, as part of a “value-up plan” presented 31 March.

The Korean group said it aims to drive “continuing growth through market-outperforming sales and an improved sales mix of high-margin products.” 

At the core of the plan is a push to strengthen Hankook’s position in electric vehicle tires.

Hankook said it is targeting a 50% EV share in passenger car/light vehicle tire (PCLT) OE by 2028 to “strengthen 1st-tier EV positioning.”

This will be supported by it’s the launch of the second generation of iON product line.

Furthermore, the group aims to build “EV market leadership centred on iON product competitiveness,” with a target to grow EV replacement tires by a CAGR of 45% through to 2028.

Alongside EVs, Hankook is focusing on larger, higher-margin products.

The Seoul-based group said it plans to sustain a 10% CAGR in ‘18-inch and above tires’ by 2028, driven by “targeted marketing, channel penetration and field support.”

High-inch tires are expected to account for more than 50% of PCLT sales by 2028, up from 47% in 2024.

To support growth, Hankook will expand production capacity, particularly in the US and Europe.

The group said it will pursue the expansion of its plants in the US and Hungary to boost sales of high-inch and high value products, while increasing local output “to mitigate tariff” risks.

Overall PCLT capacity is set to rise from 94 million units in 2025 to 100 million units by 2028.

Meanwhile, truck and bus radial (TBR) capacity will increase by around 40% to 5.9 million units over the same period.

The company said it will also carry out “facility upgrades, EV infrastructure, and factory-level re-balancing and restructuring” to support efficiency and output.

Alongside its tire business, Hankook outlined plans to stabilise and restructure its thermal management unit, Hanon Systems, following its recent consolidation.

The group said the focus will be on “strengthening business fundamentals and management soundness through profit structure restructuring,” as it works to improve profitability and financial stability.

At group level, Hankook is targeting consolidated revenue of KRW30 trillion (€17.4 billion) by 2031, with operating margins of over 10% from 2028 onwards.

The growth, Hankook said, will be driven by “stabilised capacity expansion and operational efficiency improvements.”

Within the core tire business, Hankook said it expects to maintain “top-tier profitability,” supported by an operating margin of around 14% and earnings (EBITDA) of “over KRW2 trillion.”

The group expects revenue growth to “outpace the global tire market CAGR,” underpinned by a higher share of premium and high-margin products.