Hankook Tire announces 2024 Q2 financial results

- Hankook Tire & Technology maintained a strong performance, increasing sales by 2.4% and operating profit by 69.2% year over year (YoY)
- The company’s premium brand strategies comprised of investment in research and development (R&D) and electric vehicle (EV) and high-performance tires under the leadership of Hankook & Company Group Chairman Hyunbum Cho yielded great results
- Passenger cars and light trucks (PCLT) tires with at least 18 inches accounted for 46.3% of the sales, 2.8%p growth YoY

Seoul, Korea, August 8, 2024 — Global leading tire company Hankook Tire & Technology (Hankook Tire) posted KRW 2,317.8 billion in sales and KRW 420 billion in operating profit for the second quarter of 2024, based on global consolidated financial results. Sales increased 2.4% year over year (YoY), and operating profit saw a YoY increase of 69.2%.

Despite prolonged high inflation and elevated interest rates, which dampened consumer sentiment throughout the global economy, Hankook Tire has maintained an upward growth trajectory. This follows a variety of initiatives based on the premium brand strategy, including proactive research and development (R&D), leadership in the electric vehicle (EV)-exclusive tire market, and strong partnerships with high-performance automotive manufacturers under the leadership of Hankook & Company Group Chairman Hyunbum Cho. Additionally, by implementing a region-specific sales strategy based on expanded sales channels and an enhanced distribution infrastructure, Hankook Tire made the most of its technological expertise and kept its premium products competitive.

In the second quarter, high-inch tires, measuring at least 18 inches, comprised 46.3% of all passenger car and light truck (PCLT) tire sales, representing a YoY increase of 2.8 percentage points. High-inch passenger tires accounted for 63% of total sales in the Chinese market, the highest proportion of any region, and 55.3% in South Korea, followed by 54.6% in North America and 37.8% in Europe.

Hankook Tire has secured top-tier global tire technology, satisfying the performance and quality standards required by premium and high-performance automotive brands. The company is continuously expanding its partnerships as an original equipment (OE) tire supplier, collaborating with renowned brands such as Porsche, Mercedes-Benz, BMW, and Audi, as well as performance divisions including Mercedes-AMG, BMW M, and Audi RS. Additionally, Hankook provides tires to leading electric vehicle manufacturers such as Tesla and BYD. Currently, the company supplies OE tires for approximately 280 models from nearly 50 global automakers.

In the EV-exclusive tire segment, Hankook Tire is continuing to make remarkable progress. Since launching the world’s first full line of EV-exclusive tires in 2022 under the iON brand, the company has diversified the brand’s portfolio covering 236 specifications ranging in size from 16 inches to 22 inches. It is also expanding supply of OE tires to EV models including Porsche Taycan, Audi e-tron GT and Q4 e-tron, BMW i4, Volkswagen ID.4, Hyundai Ioniq 6, Kia EV3 and EV9, Tesla Model Y and Model 3, and BYD Song Max and Yuan.

The company is also strengthening its domestic and global marketing activities to enhance its position as a premium brand. Hankook Tire is the exclusive supplier and official partner of the ABB FIA Formula E World Championship, the world’s premier EV racing competition, as well as the Lamborghini Super Trofeo racing series hosted by Italian supercar brand Automobili Lamborghini S.p.A. It also has partnerships with popular sports organizations around the world. These include the UEFA Europa League, which comprises top European professional soccer clubs and the prestigious German soccer club Borussia Dortmund.

Q2 2024 Consolidated Financial Results

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NOTE: Average exchange rates for the given annual period were retrieved from the Korea Exchange Bank.