Seoul – Hankook Tire has seen its first quarter results lifted significantly as a result of a “steady recovery” since the second half of 2020.
The Korean tire maker saw a 75% rise in year-on-year operating profit to KRW 186 billion (€138 million), on 12.6% higher sales of KRW1,616 billion, announced Hankook 3 May.
The tire maker said sales are stabilising in several major markets, including Europe, North America, and China, particularly in the high-inch tire sector (18 inch and up).
Global sales of high rim-sized tires accounted for 38% of entire group’s tire sales, up 4% compared to the same period last year.
Sales of replacement tires also increased as the market demand in the US and Europe continued to improve.
China likewise showed a rise in the demand for replacement tires. Here, original equipment (OE) sales showed a ‘healthy’ growth, reflecting an upturn in automotive production. Sale of high-inch tires in China increased 13 percentage points to 40% year-on-year.
In view of the strong growth, Hankook said it will continue, in 2021, to strengthen its reputation as a “premium brand” and will continue to increase its OE supply through partnerships with global car makers.
Furthermore, the Korean group seeks to “maintain the growth momentum” of its high-inch tire sales in major markets and add OE partnerships throughout the year.
Hankook said it will also target growth in the electric vehicle tire sector, while increasing its focus on technology and sustainability.