automotive

Hankook Tire Achieves Record High Operating Profit In 2024

Hankook Tire & Technology, a leading global tire company, has released its financial report for 2024. According to the report, Hankook Tire achieved sales of KRW 9.4119 trillion and an operating profit of KRW 1.7622 trillion. This reflects a 5.3% increase in sales and a 32.7% rise in operating profit compared to the previous year.

Despite a global economic slowdown last year, Hankook Tire reached its highest profitability ever. This success was driven by an increase in high-value products. In the fourth quarter, the company reported sales of KRW 2.5315 trillion and an operating profit of KRW 473.2 billion.

This achievement is a result of the 'First Mover' strategy from Chairman Hyunbum Cho, which encourages the company to proactively adapt to market changes while continuing to invest in research and development and strengthening its global premium brand position. The qualitative growth was supported by a rise in sales of passenger tires sized 18 inches and above, along with high-value product categories, which increased by 2.3% year-on-year, reaching 46.5%.

In 2024, Hankook Tire continues to solidify its position as the exclusive supplier of Original Equipment Tires (OET) for premium automotive brands, including the Mercedes-AMG GT Coupe and BMW M5. By meeting the strict performance and quality standards of high-performance car manufacturers, Hankook Tire strengthens its strategic partnerships by supplying OET for over 280 models across 50 global brands, including Porsche, Mercedes-Benz, BMW, Audi, Audi RS, and leading electric vehicle manufacturers like Tesla and BYD.

To further enhance its position in the electric vehicle tire market, Hankook Tire is driving innovation through iON, the world's first electric vehicle tire brand. Hankook Tire has been ahead in developing core technology for premium electric vehicles before the commercialization of electric cars began. The company is also committed to expanding its business portfolio in the electric vehicle market by strengthening strategic partnerships to supply original equipment tires for leading electric vehicles, including the Porsche Taycan, Audi e-tron GT and Q4 e-tron, BMW i4, Volkswagen ID.4, Hyundai IONIQ 6, Kia EV3 and EV9, Tesla Model Y and Model 3, as well as BYD Song Max and Yuan.

Additionally, this year, Hankook Tire has started a three-year strategic partnership as the exclusive tire supplier for the FIA World Rally Championship (WRC), one of the most prestigious motorsport series in the world organized by the Fédération Internationale de l'Automobile (FIA). Hankook is also enhancing its presence in global motorsport by continuing its collaboration with the ABB FIA Formula E World Championship and Lamborghini Super Trofeo. The company uses performance data and technical insights from these prestigious racing events to develop ultra-high-performance (UHP) tire technology.

By 2025, Hankook Tire aims to increase annual sales while maintaining an operating profit margin of around 10%. The company plans to boost sales of passenger tires sized 18 inches and above to exceed 50%. It intends to expand sales of high-value products in strategic markets, strengthen partnerships with global premium car manufacturers, and diversify its portfolio to reinforce its leadership in the growing electric vehicle market.

Currently, Hankook Tire operates eight global manufacturing facilities to enhance profitability by optimizing operational efficiency and increasing regional supply.

Tag: Hankook Tire