Three new winners in the Korean tire market

As Hankook, Kumho, and Nexen, the three major Korean tire companies, successively released their 2024 annual financial reports, the industry competition landscape has shown a new development trend. Although Hankook Tire still ranks first in the industry with its absolute revenue scale, it can be found through the segmented business data that the three companies have formed differentiated competitive advantages.

Performance across the board: innovation drives growth
In 2024, the Korean tire industry as a whole showed a strong growth trend. According to the financial report data of the leading companies, Hankook Tire's annual revenue exceeded 9.41 trillion won (about 47.3 billion yuan), a year-on-year increase of 5.3%, setting a record high. Following closely behind, Kumho Tire handed in an annual report of 4.54 trillion won (about 23.8 billion yuan), leading the industry with a year-on-year growth rate of 12%. It is worth noting that Nexen Tire, which has not yet announced specific data, also confirmed its continued growth in its performance forecast.

Nexen achieved a steady growth of 5.4% in revenue, with a record revenue of 284.79 billion won (about 14.3 billion yuan). However, due to the rising costs in the fourth quarter, profits were slightly adjusted, highlighting the pressure of supply chain management.

Panorama of the 2025 strategy of the three major Korean tire companies: the offensive and defensive battle of the new energy track and large-size tires

With the full disclosure of the 2024 annual financial report, the competitive landscape of the three major Korean tire companies, Hankook, Kumho, and Nexen, has become clearer. While the revenue scale has broken through the historical high, the structural changes brought about by the differentiation strategy are reshaping the industry landscape.

1. Differentiation of performance growth: Kumho leads the revenue growth rate, and Hankook dominates the profit scale
In 2024, the revenue of the three companies all hit a record high, but the growth momentum showed significant differences. Kumho Tire achieved a year-on-year increase of 12% with a revenue of 453.81 billion won (about 23.8 billion yuan), ranking first in growth rate. Its supporting market advantages and the simultaneous efforts of the three major markets of Europe, North America and China have contributed greatly: compared with 2020, sales in the European market increased by 2.6 times, the US market increased by 1.4 times, and the Chinese market increased by 92%. The profit side is even more impressive, with an annual profit of 433.9 billion won (about 2.28 billion yuan) surging 91% year-on-year, a six-fold jump from 2020.

Hankook maintained an absolute lead with a revenue scale of 9.41 trillion won (about 47.3 billion yuan), and the 5.3% growth rate was the result of the continued realization of the high-end strategy: the sales of large-size tires of 18 inches and above increased to 46.5%, driving operating profit to increase by 32.7% year-on-year to 1.76 trillion won (about 8.865 billion yuan), and the operating profit margin climbed to 18.7%. Among them, the performance of the Chinese market was particularly outstanding, with large-size tire sales accounting for 69.3% in the fourth quarter.

2. Strategic path division: market positioning under technological breakthrough

Kumho's new energy offensive
Relying on the "technical master" strategy, Kumho has achieved breakthrough progress in the new energy track. Its EnnoV series pioneered the use of full-specification high-load design + foam silent cotton technology, and equipped with a number of popular new energy models at the three major auto shows in China. The product premium ability brought by technological innovation has enabled it to take the lead in China, the world's largest new energy market.

Hankook's high-end barrier
By binding with leading automakers such as Volkswagen, BMW, and BYD, Hankook continues to expand its advantages in the large-size tire market. The concentrated acquisition of 19-20-inch supporting orders in the Chinese auto market confirms the effectiveness of its "locking high-end with high performance" strategy. With the expansion of truck tire production capacity in the Hungarian factory, the layout of high-value-added products in the commercial vehicle field is taking shape.

Nexen's deep cultivation in Europe
Thanks to the release of production capacity in the Czech factory, Nexen achieved a 12% revenue growth in the European market, and sales of 113.47 billion won (about 5.7 billion yuan) accounted for nearly 40% of total revenue. The 25.8% share of 18-inch and above products shows that its high-end process is accelerating, but the volatility of the global supply chain still needs to be vigilant.

3. Global Capacity Arms Race: Decisive Battle Moment in 2025
• Hankook's North American Strategy: Invest 10.5 billion RMB to expand the US factory, achieve an annual production capacity of 12 million tires (including 1 million all-steel tires) in 2025, aiming at the explosive growth of the North American new energy vehicle market

• Kumho's Southeast Asian layout: The US$300 million Vietnam expansion plan will increase production capacity by 36%, and strengthen the ability to respond quickly to the European and American markets

• Nexen's European depth: The expansion of the Czech factory will promote global production capacity to 50 million sets in 2025, and the European market share is expected to continue to rise

4. 2025 Strategic Vane
• Hankook: Sales of large-size tires exceeded 50%, and the matching rate of electric vehicle-specific tires sprinted to 29%

• Kumho: Deepen cooperation with Doublestar to create technical barriers for new energy tires

• Nexen: Impacting the 3 trillion won revenue mark, and the contribution of the European market is expected to exceed 45%