OE Tire Supply for EVs Expanded
Global leading tire company Hankook Tire & Technology (Hankook Tire) announced on Aug. 2 the company’s 2022 Q2 financial results with consolidated global sales of 2,039.9 billion won and operating profit of 175.2 billion won.
During the second quarter of 2022, Hankook Tire registered a growth of 12.9% YoY and 13.9% QoQ in aggregate sales despite external challenges that include global supply chain disruptions and rising raw material costs. Operating profit decreased 6.3% compared to a year ago, but increased 39.0% when compared to the previous quarter. The achievement was underpinned by an expanded portion of high-value-added products and effective pricing strategies.
Sales of high-inch passenger car tires, 18 inches or higher, remained a key engine for growth. It accounted for 39.1% of Hankook’s total sales of passenger car tires, up 1.1%p from the last fiscal quarter. The Chinese market was the biggest contributor with its share of high-inch tire sales for passenger cars having grown 11.5%p year-on-year to 51.8%. The Korean market followed, seeing a YoY increase of 3.4%p to a record high of 50.5%. The European market reported a 0.5%p increase YoY. Consolidated revenue also grew on the North American market’s strong sales growth in both original and replacement tires.
However, sales volume and operating profit in the second quarter posted a decline from the same period last year, reflecting the market impact of the Russia-Ukraine conflict, lockdown in China, and historically high inflation rates.
In addition to stabilized business performance, the second quarter included significant momentum for Hankook towards future leadership in the industry. In May, Hankook opened Asia's largest proving ground 'Hankook Technoring'. The test track provides rigorous testing conditions for Hankook's most advanced products, including tires for electric vehicles (EVs) and supercars. It is expected to play a pivotal role in meeting the strict requirements of carmakers as well as in boosting the era of electric vehicles.
In the same month, in Europe, Hankook introduced its first family of tires specially designed for electric vehicles. The iON products, available in summer, winter and all-season treads, will also roll out in other markets within this year.
During the second quarter, Hankook continued outfitting premium automobiles with original equipment tires. Hankook started equipping Audi Q4 e-tron and Audi Q4 Sportback e-tron with its Ventus S1 evo 3 ev. Hankook's extensive OE installations at Audi’s electric vehicle models started with fitting Audi’s first all-electric sports car, the Audi e-tron GT, in June last year.
Hankook was also able to prevail against competitors, especially with the results of tire tests by renowned automobile magazines. Hankook gained three awards at the 2022 Auto Express Product of the Year Awards hosted by UK’s leading car magazine Auto Express. Hankook Ventus S1 evo 3 was awarded with the title of “Summer Tyre Product of the Year 2022”. Hankook Kinergy 4S 2 won "Product of the Year", scoring highly in aquaplaning tests. Hankook Winter i*cept RS 2 achieved a solid "Commended" in the same test.
Hankook Tire aims to achieve double-digit growth this year and increase its portion of high-inch tires sales to 42.0% among total sales of passenger car tires. Hankook will also focus on gaining leadership inthe electric vehicle tire segment.