Hankook Tire’s first-quarter results for 2021 show continuing improvements for the tyre industry, with an increase in sales of 12% and a significant 75% operating profit rise when compared to the previous year.
Strong Start for Hankook for the First 2021 Quarter
In promising results, Hankook’s first-quarter sales reached KRW 1.61 trillion (equivalent to approx. EUR 1.203 million) and KRW 186 billion (EUR 138 million) in operating profit, showcasing the steady recovery within the tyre market. Hankook also focused this quarter on extending its partnerships, while planning to extend its work within the electric vehicle sector for the current quarter.
Since the gradual recovery in the second half of 2020 Hankook has shown increased stability in the major markets, with sales holding firm in Europe, North America and China, with particular strength within the high-inch tyre sector for tyres 18 inches or above. This is crucial for the market as sales of high-inch tyres accounted for 38% of the market this year, which is a marked rise from 34% in 2020.
Sales of replacement tyres have also increased as the market demand in the U.S. and Europe has continued to improve. China is also showing a higher demand for replacement tyres, as well as sales of original equipment (OE) which indicates an upward turn for the production of automotive vehicles. High-inch tyres in China rose rapidly when compared to the year before, with a significant 13 percentage point rise, to 40%.
Hankook Extends on its OE Partnerships
Hankook has recently extended its OE contracts by supplying the Ventus S1 evo 3 for the Porsche 718 Boxster and the Porsche Cayman. Hankook is furthermore actively expanding its partnerships for EV fitment, as demonstrated by the agreement to supply tyres factory-installed on Porsche’s first high-performance electric sports car, Taycan, as well as the NIO ES6 and EC6, flagship models made by China’s fast-growing electric vehicle brand.
2021 will be a key year for Hankook as they plan to focus on the electric vehicle tyre sector, with a particular focus on EV tyre innovation as well as future technologies and solutions that will transform the industry in a new direction.