Nokia, Finland – Nokian Tyres is aiming to double sales in North America over the next few years as it targets a €2-billion annual revenue in the ‘mid-term’.
Presented during the tire maker’s capital markets day 8 Sept, the mid-term plan will aim to maintain the company’s ‘leading position’ in Nordics and Russia, while increasing market share in North America and central Europe.
Mid-term, Nokian clarified to ERJ, refers to "3-5 years’ time, base level being the cumulative 12 months from second half of 2020 to first half of 2021."
Speaking at the online event, Nokian president and CEO Jukka Moisio said the tire maker had completed its “investment phase” and was now focusing on new products and supply chain growth to achieve the target.
In North America, Moisio went on to say, Nokian sold roughly 2 million tires over the past 12 months.
“The ambition is to increase that number to 4 million units [over the next few years],” he added.
To achieve this, the Finnish tire maker will ensure ‘snowbelt success’ in the region and aim for ‘targeted growth in all-season products'.
Furthermore, Nokian aims to develop ‘market relevant product offering’ and continue to build distribution network in the region.
In central Europe, Nokian expects to increase unit sales by 50%.
Here, Moisio explained, starting point, in the last 12 months, was about 6 million units.
In medium term, the tire maker aims to increase the figure to 9 million units, through ‘high-value growth in profitable segments’ and expanding geographical reach and brand awareness.
Furthermore, Nokian highlighted plans to increase revenue from its heavy tires from €200 million over the past year to €300 million.
To that end, the tire maker will target growth in “premium segments”, further strengthen position in forestry and expand in agriculture and on-road products.
Nokian reported sales of €1.3 billion and segments operating profit of €190.2 million in 2020.
In the first half of 2021, the tire maker reported sales of €758 million, while segments operating profit stood at €140 million.