Seoul, Korea / Neu-Isenburg, Germany, 28 July 2023 – Premium tyre manufacturer Hankook announced sales of KRW 2,263.4 billion (approx. EUR 1,580.8m) and an operating profit of KRW 248.2 billion (approx. EUR 173.3m) based on global consolidated financial results for the second quarter of 2023. Sales and operating profit increased by 11 percent and 41.6 percent respectively YoY.

Despite the challenging business environment, such as slow economic growth, Hankook achieved broad-based growth. Through its global, top-tier technology and premium brand strategy, the company recorded robust sales of its electric vehicle (EV) tyres and high-value products, leading to increases in both sales and operating profit.

As vehicle production increased due to stable supply of automotive semiconductors, the supply of original equipment (OE) tyres continued to expand globally. Also, in spite of reduced demand due to high distributor inventories in major markets, sales of replacement tyres exceeded market demand. In addition, profitability improved due to stabilisation of raw material costs and freight rates.

The proportion of sales attributable to 18-inch and higher passenger car tyres – which are high-value-added products – reached 43.6 percent, up by 4.5 percentage points (pp) YoY. Sales of replacement tyres and OE tyres increased in the major markets, such as Europe, North America, and China, driving global growth. 

In the second quarter, Hankook launched ‘iON evo’ and ‘iON evo SUV’, rounding off a full lineup of EV tyres – including all-season, summer, winter, and high-performance tyres – in the Korean market. Hankook also introduced ‘iON evo’ and the all-season ‘iON ST AS’ tyre in China – the world’s largest EV market – and further solidified Hankook’s presence and competitiveness in the global market.

Though global economic uncertainty remains in the second half of the year, Hankook plans to focus on pursuing qualitative growth, such as achieving sales increase of more than 5 percent YoY raising the proportion of sales attributable to 18-inch and higher passenger car tyres to 45 percent. The company will also continue developing partnerships with leading global carmakers and expanding its presence in the EV market with the goal of reaching 20 percent of OE tyre supply for EV models among total supply of OE tyres for passenger cars and light trucks.

Q2 2023 Consolidated Financial Result

*Exchange Rates:

(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)