Nexen's 2025 H1 Remarkable Performance

On July 30, 2025, Nexen Tire, a renowned South Korean tire manufacturer, announced its first-half results. Amidst fierce global competition, its supporting business achieved significant breakthroughs, with revenue continuing to climb, demonstrating strong growth momentum.

In the first half of 2025, Nexen Tire achieved total revenue of 1,575.9 billion Korean won (approximately 8.163 billion RMB), a year-on-year increase of 9.29%. In the second quarter alone, consolidated revenue reached 804.7 billion Korean won (4.168 billion RMB), a year-on-year increase of 5.4%, marking two consecutive quarters of record revenue. Several key factors are at work behind these impressive results.

Czech Factory Expansion Provides Solid Support for Global Supply

First, Nexen Tire's factory in the Czech Republic has achieved significant expansion. By 2026, the plant will be able to produce 11 million tires annually. This significant increase in production capacity will provide a solid foundation for global supply.

Since the Czech factory expanded, its improved supply capacity has been directly reflected in sales performance. First-quarter data shows that European sales increased by 24% year-on-year, accounting for approximately 41% of total sales, higher than North America (23.5%) and South Korea (15%).

The factory's operating rate has also steadily increased since the expansion, reaching approximately 60% by the end of the first quarter of this year, and has steadily increased by 20% each quarter since it began production last year. This allows Nexen to meet demand in the European market while also expanding its product offerings to other regions around the world.

Global Localization Strategy Enhances Market Competitiveness

Secondly, Nexen's global localization sales strategy has been extremely effective. For example, in the European market, Nexen has a deep understanding of local culture and market needs.

Recognizing that German car owners place greater trust in local production, the company quickly increased the proportion of local talent at its Stuttgart R&D center to 73%, thereby enhancing the alignment of product development with German market needs.

In response to the Southern European market's extreme pursuit of environmental protection, the innovation team successfully developed bio-based synthetic rubber technology, whose carbon emissions are far below EU standards and highly favored by Southern European consumers.

This locally tailored strategy has significantly enhanced Nexen Tire's competitiveness in the European market. Since launching its global OE program in 2012, Nexen has steadily expanded its original equipment (OE) supply partnerships. Today, its products are sold in approximately 150 countries, with international markets accounting for approximately 85% of its total revenue.

Excellent product quality secures a significant share of both major markets against market trends

Despite uncertainty surrounding the automotive industry in the second quarter of 2025 due to the impact of reciprocal tariffs, Nexen has achieved outstanding results in both the aftermarket and replacement tire markets thanks to its superior product quality.

In the aftermarket, Nexen has supplied tires to European premium automakers such as Porsche since 2016. By continuously expanding its supply channels, Nexen has established a firm foothold in the high-end OE market. Its Czech plant is strategically located, supplying tires to approximately 30 automakers within a 400-kilometer radius. This strategic advantage strongly supports the development of its supporting business. Nexen also performed well in the replacement tire market.

Take the European market as an example. Since the second half of last year, demand for replacement tires in the region has remained stable, while demand for seasonal products such as winter and all-season tires has increased. Nexen has seized this opportunity and met consumer demand for different tire types with its high-quality products.

Global Multi-Region Strategy, Multi-Spot Success

Nexen is also actively expanding and achieving results in other regions of the world. In North America, despite weak sales of major auto brands such as Jeep and RAM, profitability in the original equipment business has improved due to an increase in sales of large-rim tires. In the replacement tire market, revenue growth was achieved by revitalizing the distribution network and diversifying the customer base.

In the Middle East, Nexen is continuously expanding its business through partnerships with local entities, such as Dubai's taxi fleet. With strong demand for luxury cars in the region, Nexans is committed to providing high-performance tires adapted to the local environment. The Middle East has become the company's third-largest contributor to overseas sales.

In Australia, where both total vehicle ownership and per capita car ownership are among the highest globally, Nexans has strengthened its distribution capabilities by establishing strategic warehouses. Leveraging local customers' preference for larger vehicles, Nexans offers a larger tire range, resulting in higher profits.

In Southeast Asia, with the region's rapid economic development and expansion of the automotive industry, Nexans is collaborating with local dealers to renovate approximately 80 retail stores by the end of 2025 to enhance brand awareness.

Looking Ahead, Continuing to Strive for Success

Looking ahead, Nexans will continue to leverage its capacity expansion, localization strategies, and high-quality products to maintain its momentum in the global tire market and achieve even greater success.