Hankook Tire & Technology Co. Ltd. achieved revenue of around $6.7 billion during 2023.
The company also posted an 88.1% year-over-year increase in operating profit.
Both original equipment and replacement tire sales “outperformed market demand” and tire volumes increased in “almost all” of Hankook’s regions, according to Hankook officials.
Meanwhile, demand for “high-value products such as EV tires and SUV tires has increased, leading to an improved product mix” during the year.
And operating margins “showed strong rebound on lower freight costs and raw material price.”
Hankook officials report that the company’s sales of 18-inch and larger consumer tires climbed 3.3% to 44.2% during the year.
However, the overall TBR tire market “faced challenges with soft demand and high inventory levels in distribution.”
Regional trends
Hankook’s overall replacement tire sales in North America decreased during 2023 “due to increased competition and sluggish (TBR) tire market conditions,” with OE channel tire sales continuing their recovery thanks to an “increase in new vehicle purchase.”
In Europe, replacement sales showed a slight decline year-over-year due to a drop in TBR demand. But OE tire sales grew.
In China, Hankook enjoyed an increase in replacement tire sales thanks to “improved market conditions and continued inch mix improvement,” according to Hankook officials, and the company’s OE tire sales increased, as well.
In its native South Korea, Hankook’s OE sales declined slightly “with the termination of consumption tax cuts on passenger cars.” The company’s replacement tire sales, however, improved due to greater demand for high-value products like EV, SUV and winter tires.
Globally, the company wants to “further increase” its sales of 18-inch and larger consumer tires, targeting a 49% sales ratio this year, while expanding its EV tire sales ratio to 25% in 2024, which would be a 10% jump from 2023 levels.
