Tire manufacturers post robust earnings on growing high-end market

From left are Kumho Tire CEO Jung Il-taik, Hankook Tire CEO Lee Soo-il and Nexen Tire CEO Kang Ho-chan. Courtesy of each firm

The top three tire manufacturers here — Kumho Tire, Hankook Tire and Nexen Tire — are on a path for profitable growth on increasing sales for bigger and premium tires, as consumers display unwavering preference for SUVs and luxury sedans, according to data and analysts, Tuesday.Buoyed by the improved product mix focusing on tires larger than 18 inches, Kumho Tire has reported an outstanding operating profit growth of 167 percent for the first quarter from a year earlier. The company is set to keep enhancing its product portfolio with the focus on premium and big tire markets this year.

The company also hopes to create a fresh profit channel with the launch of its EnnoV brand for electric vehicles (EV). The EV-exclusive tire brand will launch diverse premium products in the latter half of this year.The EV-specific tires also come with higher margins than other tire segments, coupled with the big tires for typical vehicles with internal combustion engines.Market analysts expected the tire manufacturer to keep generating robust earnings in the second quarter on solid tire demand in Europe and North America.“Kumho Tire was able to achieve sales growth of 4.6 percent between January and March on solid sales for both original equipment tires and replace equipment tires in the two regions,” Hi Investment & Securities analyst 온라인카지노 Cho Hee-seung said.

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