Hankook marked its best performance ever, with 6.5 percent growth in sales and 88.1 percent in operating profit YoY.
Hankook Attributes Its Growth to Expansion of High-Value Products
Hankook has announced sales of KRW 8,939.6 billion (approx. EUR 6,329.5m) and an operating profit of KRW 1,327.9 billion (approx. EUR 940.1m) based on global consolidated financial results for 2023.
Despite the global economic downturn, these figures represent Hankook Tire’s best performance since its establishment – with a year-on-year (YoY) increase of 6.5 per cent in sales and 88.1 percent in operating profit. These results solidify its position as a prominent, top-tier global brand. In the fourth quarter of 2023, sales and operating profit reached KRW 2,232.0 billion (approx. EUR 1,570.2m) and KRW 492.4 billion (approx. EUR 346.4m), respectively.
The robust performance is the result of premium brand strategies as well as sustained, proactive investment in research undertaken to adapt to future mobility trends. All of this has taken place under the leadership of Hankook Tire Chairman Hyunbum Cho.
The unprecedented figures stemmed in part from the expansion of Hankook’s “iON” brand, the world’s first full line-up of electric vehicle (EV)-exclusive tyres. The company’s strong performance was also fuelled by strengthening the supply of tyres for supercars and global premium brands. A further factor was increasing sales of high-inch passenger car tyres (18 inches and above), representing new levels of diversification for the high-value portfolio.
In addition, despite decreases in the cost of raw materials such as synthetic rubber and carbon black – as well as in maritime freight costs, the company was able to maintain competitive prices. This, too, contributed to performance improvements.
Hankook has been continuously expanding its sales and line-up since introducing iON to the global market. At the same time, the company is the exclusive technical partner and tyre supplier of the world’s leading EV racing competition, the ABB FIA Formula E World Championship. Hankook leads the global EV tyre market through its innovative, highly specialised technology accumulated over many years, pre-dating the widespread commercialisation of EVs.
As a worldwide industry leader, Hankook has cemented its position as a premium tyre manufacturer by supplying approximately 250 OE tyre models to roughly 40 global car brands, including Audi, BMW, Mercedes-Benz, Porsche, and Tesla.