Hankook Tire have maintained strong results in an uncertain year, with the key takeouts being a 15.5% increase in global operating profit, amounting to KRW 628 billion (Eur 466 million), as well a 3% rise on high-inch tyres of 18 inches and above. Overall global sales also hit KRW 6.454 trillion or (EUR 4,794 million).
Hankook Tire Expands Tyre Sales in Europe, North America and China
It goes without saying that 2020 was a fraught year for many businesses, due to the pandemic causing continual change. With every company bracing for a hefty loss in the first half of the year, Hankook surpassed expectation, with Hankook believing their tyre technology and high quality products provided joint reasons for riding out the period with an operating surplus. Hankook Tire has proceeded to expand its partnerships with premium car makers and has already become a pioneer in the electronic vehicle tyre market.
Hankook Tire however have managed to achieve consolidated global sales of KRW 6.454 trillion (EUR 4,794 million) with an operating profit reaching KRW 628 billion (EUR 466 million). Hankook Tire sustained its qualitative growth as operating profit increased by 9.7% for the same period last year and only suffered a marginal decline in its sales revenue compared to the last year. In particular, sales of high-inch tyres - 18 inches or higher – contributed to the growth and accounted for around 35% among total sales of passenger car tyres, 3% up from the prior year. A further growth engine has been the rising sales in replacement tyres that are especially profitable in regions such as Europe and North America, as well as the stabilisation of raw material costs that has also contributed to higher operating profit,.
Things substantially improved in the second half of the year, with sales in regions such as Europe, North America and China increasingly healthily. In China, in particular sales of both original and replacement tyres increased as sales of high-inch tyres improved by 12 percentage points year on year and amounted to around 40% of total sales.
Hankook Recognised in 2020 for Its Technological Innovation
As well as strong financial results, Hankook also received various top rating in several independent tyre tests, for instance in Germany and the UK. They were also ranked by a consumer preference survey as the best-selling brand on a major European e-commerce platform in three categories ranging from all-season to summer and winter tyres. In addition, the tyre maker also strengthened its position as a premium brand by expanding its partnership with premium car makers, including the OE-cooperation with Porsche's first high-performance electric sports car, Taycan, and Audi’s top models RS6, RS7 as well as Audi RS Q8.
For 2021, the year of the company’s 80th anniversary, Hankook Tire targets global sales of KRW 7 trillion. The goal is to further strengthen Hankook and its brand as a global top tier company by expanding sales of high-inch tyres in major regions, supplying OE tyres for premium cars, and taking the lead in the electric vehicle market. The company also aims to continuously drive sustainable growth through optimising distribution strategies for each region and diversifying the product portfolio based on its quality competitiveness.