China NEV Tire Demand Accelerates
With new energy vehicle penetration exceeding 60%, the demand for dedicated tires is accelerating
Data from the China Passenger Car Association (CPCA) in April 2026 shows that the retail penetration rate of new energy passenger vehicles in China has exceeded 61.4%, meaning that more than six out of every ten new cars sold are new energy vehicles. This rapid shift in vehicle structure is directly driving the tire market into a new growth cycle. Compared to traditional gasoline vehicles, new energy vehicles are generally heavier and have stronger instantaneous torque output from their motors.
Owners also have more specific requirements for driving range, cabin quietness, and tire wear resistance, making it difficult for previously common tire products to fully meet these demands. New energy-specific tires, with racing technology accumulation and proven performance under extreme conditions, are gradually becoming the mainstream option for OEMs and the replacement market.
Under this trend, Hankook Tire, which has long been involved in Formula E racing and has translated racing technology into civilian products, has seen a simultaneous increase in attention and sales in both the original equipment and replacement markets in China.
Hankook is the exclusive tire technology partner of the ABB FIA Formula E World Championship, providing iON Race racing tires for the Gen3 Evo all-electric race car. This race served as a testing ground for Hankook's cutting-edge tire technology. Formula E utilizes street circuits with complex conditions; the Gen3 Evo race car accelerates from 0 to 100 km/h in 1.86 seconds and reaches a top speed of 322 km/h. With no tire changes throughout the race, it comprehensively tests the tires' durability, thermal stability, all-terrain grip, and low rolling resistance.
The high-temperature, high-humidity, and alternating wet and dry conditions at domestic races in Sanya and Shanghai helped Hankook accumulate real-world test data tailored to domestic road conditions. The high-strength fiber-reinforced materials, balanced temperature control compound, high proportion of bio-based sustainable rubber, and uniform pressure tread design validated in the race were subsequently fully transferred to the civilian iON new energy tire series, forming a research and development path from "race testing—technology iteration—civilian application," a technological characteristic that distinguishes it from other brands in the industry.
This transfer of track technology primarily addresses several challenges in tires for new energy vehicles. For example, the silica-rich vulcanization compound validated in Formula E racing is applied to the entire iON civilian tire series, reducing rolling resistance, helping to extend range, and improving dry and wet braking and cornering grip.
The racing-grade tire carcass reinforcement solution, after adjustments, is adapted to suit the heavier body and instantaneous high torque output of new energy vehicles, helping to alleviate the common problem of rapid wear in electric vehicles. Simultaneously, the sound-dampening cotton technology based on racing noise reduction principles, combined with a multi-pitch tread design, can reduce tire noise caused by the lack of engine noise masking under electric motor drive, meeting the demands of family car owners for driving comfort.
In early 2026, Hankook completed the specification expansion of the iON ST AS product line for the domestic market, adding 17 new compatible specifications at once, including 11 models covering mainstream large-size wheels from 18 to 21 inches, aligning with the current design trend of new energy vehicles favoring larger wheels, expanding the compatibility range of the original equipment and replacement markets.
The implementation of this technology has also led to the continuous expansion of original equipment manufacturing (OEM) supply. Hankook's new energy tires have entered the original equipment (OEM) systems for high-end models such as the Porsche Taycan, BMW high-performance plug-in hybrids, and the all-electric Macan EV.
In the mainstream family car market, they are included in the OEM lists of popular domestic models from BYD and Xiaomi, covering a wide price range from entry-level to family cars to high-performance all-electric vehicles. Furthermore, the iON ST AS tires are being used in large quantities in the Luobo Express L4 autonomous driving fleet, undergoing long-term commercial operation in cities such as Wuhan, Shenzhen, and Chongqing. Their wear resistance and handling performance under frequent start-stop and complex driving conditions in urban environments have validated the product's performance from a commercial perspective.
The expansion of the OEM business has simultaneously driven sales growth in the replacement market. Data from the domestic mid-range replacement tire market in 2025 shows that annual sales of Hankook's iON new energy series increased by 68% year-on-year. Feedback from offline chain stores indicates that among car owners inquiring about new energy vehicle tires, those actively seeking information about Hankook products account for a significant proportion.
In terms of distribution channels and production capacity, Hankook boasts thousands of branded specialty stores and over two thousand authorized franchise stores across China, covering markets from first-tier cities to county-level cities. Its two major passenger car tire factories in Jiaxing and Huai'an support the domestic market supply and new product launches, enabling it to respond more quickly to the iterative development of domestic electric vehicle models.
Behind this market growth lies the accumulation of technology and real-world testing data. Unlike relying solely on laboratory testing, the extreme condition testing of Formula E global racing provides Hankook with tangible technological labels, leading some car owners and automotive media to trust the performance of its new energy tires.
Multiple products in the iON series have achieved high scores in key indicators such as wet grip, rolling resistance, and noise reduction in European tire tests and EU tire label ratings, further reinforcing public perception through professional evaluation results. With the continued rise in the number of new energy vehicles in China, the relatively short replacement cycle for electric vehicle tires creates substantial replacement demand.
Coupled with the continued release of OEM orders, Hankook, leveraging its differentiated characteristics derived from racing technology, still has the potential for further growth in the domestic new energy tire market.
From an industry-wide perspective, electrification is changing the competitive landscape of the tire industry, making technological reserves and real-world testing capabilities key factors for brands to gain market share. Hankook uses Formula E racing as a testing ground, transforming solutions from extreme scenarios into civilian mobility products to meet the diverse needs of domestic new energy vehicle owners for range, quietness, and wear resistance, achieving synergy among technology, brand, and sales.
Going forward, as the penetration rate of new energy vehicles continues to rise in China and consumers gain a deeper understanding of specialized tires, Hankook's ability to continuously localize racing technologies and perfect its full-specification product matrix will be a key factor in consolidating its competitiveness in the domestic market.
