Hankook 2025: Strategy Drives Growth Goals
In 2025, Hankook Tire will steadily advance in the tire industry, continue to deepen its development strategy, and strive to stand out in the market competition. In the field of large-inch tires, Hankook's layout over the years has begun to bear fruit, and plans to make further efforts this year.
In 2024, Hankook's sales proportion of 18-inch tires has risen to 46.5%, a year-on-year increase, and in 2025, its goal is to increase the sales proportion of tires 18 inches and above to more than 50%. This goal is not set out of blind optimism, but based on Hankook's accurate grasp of market trends and confidence in the competitiveness of its own products.
Regional market performance is differentiated, and the potential of the European market is yet to be tapped
From the perspective of market performance, different regional markets have different degrees of acceptance of Hankook's large-size tires.
In the Asian market, especially in China and South Korea, the sales situation of large-size tires is very good. In the fourth quarter of 2024, Hankook's sales of 18-inch and above tires accounted for 69.3% of the Chinese market, 7.5% higher than the same period in 2023, and the average annual share reached 65%; the sales of large-size tires of 18 inches and above in the Korean domestic market accounted for an average of about 57%.
The North American market also performed well, with the sales of large-size tires increasing by 3.5% year-on-year in the fourth quarter of 2024, and the average annual share was about 55%, about 9 percentage points higher than the global average. However, although the European market has achieved remarkable results in overall tire sales, the sales of large-size tires are relatively low, averaging about 37% in 2024, and there is still a lot of room for growth.
Two-pronged approach to promote growth and strengthen the high-end brand image
In order to achieve an increase in the sales share of large-inch tires, Hankook has taken a two-pronged approach in product research and development and market promotion. In terms of research and development, resources are continuously invested to optimize the performance of large-size tires, so that they have better grip, wear resistance and comfort to meet consumers' demand for high-end tires.
For example, the new rubber formula it developed effectively improves the performance of tires under different road conditions. In terms of marketing, Hankook actively cooperates with major automobile manufacturers and becomes the original tire supplier for many high-end models. At present, high-performance cars including BMW M5 and Mercedes-AMG GT Coupé have chosen Hankook as a supporting partner, which not only increases the exposure of the products, but also strengthens Hankook's high-end brand image.
Focus on electric vehicle tires and seize the market opportunities
In the field of electric vehicle tires, Hankook is also ambitious. With the booming global electric vehicle market, Hankook has made early arrangements and is committed to expanding its electric vehicle product portfolio. The proportion of its new energy electric vehicle tires has increased significantly by 6% in the first quarter of 2025.
Currently, new energy vehicle supporting business accounts for 23% of Hankook's supporting business, and Hankook's goal is to increase the sales proportion of electric vehicle tires from 22% in 2024 to 29% in 2025. Take its iON series products specially designed for new energy vehicles as an example. Since its launch in 2022, the market response has been excellent.
The iON series of tires combines many advantages such as low noise, high load-bearing capacity, high durability, low rolling resistance and excellent grip, which well matches the performance characteristics of new energy vehicles.
In addition, the iON series of tires have become the original supporting tires for many new energy models such as the Tavascan pure electric SUV of Volkswagen's high-performance brand CUPRA and the Porsche Taycan pure electric sports car, fully demonstrating Hankook's technical strength and market competitiveness in the field of electric vehicle tires.
Promote capacity expansion and consolidate growth support
Capacity expansion is also a key measure for Hankook Tire to ensure sustainable growth. Hankook is actively promoting the expansion projects of its Tennessee plant in the United States and its Hungarian plant. The investment in the Tennessee plant in the United States is as high as US$1.65 billion, and the investment in the Hungarian plant is EUR 550 million.
After the expansion of the two plants is completed, Hankook Tire's production capacity will increase from the current 97 million to approximately 110 million. Among them, the production capacity of passenger car and light truck tires (PCLT) is expected to increase by 7 million, the production capacity of truck and bus tires (TBR) is expected to increase by 1 million, and the production of truck and bus tires (TBR) in the US factory will increase by 850,000.
Through the increase in production capacity, Hankook can better meet the market demand for its products. Whether it is large-inch tires or electric vehicle tires, it can provide a guarantee in terms of production, provide a solid backing for sales growth, and also help reduce production costs, improve the market competitiveness of products, and further consolidate Hankook's position in the global tire market.
