Good Overseas Performances

Nexon Tire had a groundbreaking ceremony for construction of tire plant in Czech in 2015.
Nexon Tire had a groundbreaking ceremony for construction of tire plant in Czech in 2015.

 

Nexen Tire Corporation is growing its size abroad. As the global sales is picking up, accounting for 80% of total sales, the third-largest tire manufacturer in Korea is reorganizing the overseas sales organization and spurring to attract new customers. 

According to the industry on August 21, among the Nexen Tire’s total sales in the second quarter this year, 80% came from overseas, .showing a steady growth from the 75% overseas sales in the same period last year.

Nexen Tire, recently starting to supply Original Equipment (OE) tires to Chrysler's “2017 Pacifica” models, is focusing on expending its supply volume. The Korean tire manufacturer has been supplying OE tires to Fiat SpA’s first Crossover Utility Vehicle (CUV) “500X” and its representative commercial van “Ducato,” Renault’s “Twingo,” Volkswagen’s “Caddy,” etc. Moreover, Nexen Tire is raising its brand recognition by being ranked 4th in the Original Equipment Tire Customer Satisfaction Study by US-based JD Power, and receiving “Very Good” rating for its all season products and winter products from the evaluation conducted by ‘Consumer Report’ in October last year.

With such performances, Nexen Tire was able to accomplish the best ever operation profit rate of 14.1% in the second quarter, to which the increased sales proportion of ultra high performance tire around the globe was a major contributor. The ultra high performance tire sales proportion of Nexen Tire in the second quarter is about 44%, which is the highest among the 3 Korean tire companies. On the other hand, the total sales of Nexen Tire reported 493.2 billion won (US$428.8 million), a 5.6% increase from a year ago. It accomplished the operating profit of 69.5 billion won (US$60.4 million), which also increased by 24.9% compared to the same quarter last year.

 

 

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution