Premium tyre maker Hankook has announced the company’s 2021 Q1 financial results with consolidated global sales rising 12.6% YoY to KRW 1.61 trillion (EUR 1,203 million) and operating profit of KRW 186 billion (EUR 138 million), an increase of 75.5% YoY.
As the global market recovers from the impact of the pandemic, Hankook’s business has also been steadily recovering since the second half of 2020. The company is seeing sales stabilize in several major markets that include Europe, North America, and China, particularly in the high-inch tyre sector that accounts for tyres 18 inches or higher. Global sales of high-inch tyres accounted for 38% of entire tyre sales, which is now up 4 percentage points compared to the same period last year.
Sales of replacement tyres also increased as the market demand in the U.S. and Europe continued to improve. China likewise showed a rise in the demand of replacement tyres along with healthy sales of original equipment (OE) tyres, indicating an upturn in the production of automotive vehicles. High-inch tyres in China increased 13 percentage points to 40% YoY.
Despite the slowdown last year, Hankook resumes to remain highly dedicated to its commitment to strengthen its reputation as a premium brand. The company is also continuing to secure partnerships with global carmakers to expand the number of OE contracts, as demonstrated by the recent announcement to supply its ultra high performance tyre, the Ventus S1 evo 3 for the Porsche 718 Boxster and the Porsche Cayman. Hankook is furthermore actively expanding partnerships for EV fitment, as demonstrated by the agreement to supply tyres factory-installed on Porsche’s first high-performance electric sports car, Taycan, as well as the NIO ES6 and EC6, flagship models made by China’s fast-growing electric vehicle brand.
In 2021, Hankook seeks to maintain the growth momentum of its high-inch tyre sales in major markets and add OE partnerships with an already robust portfolio. Growth in the electric vehicle tyre sector will also be one of the primary concentrations, as the company resumes to pursue greatness in the EV tyre innovation as well as future technologies and solutions that transform consumers’ imaginations into reality. In the midst of this growth, Hankook will continue to pace forward in pursuit to be the technology leader that bestows positive influence on the community and the environment respective of a premium brand.
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