- Sales decline due to the worldwide economic downturn and slowing consumer sentiment caused by the spread of COVID-19
- High inch tire (18 inches and over) sales growth continue with sales ratio reaching 33.7% within PCLT, a 2.7%p increase
Global tyre maker, Hankook Tire announced today the company’s 2020 Q1 financial results with consolidated global sales of KRW 1.4357 trillion and an operating profit of KRW 105.8 billion.
Hankook Tire’s earnings declined due to a sharp drop in demand for tyres caused by the worldwide economic slowdown due to the COVID-19 pandemic and lower consumer sentiment. COVID-19 has had an overall impact on the major global markets, including a decrease in demand for original equipment tyres and replacement tyres as well as the adjustment of the operating days of global production facilities.
On the other hand, despite the aftermath of COVID-19, high-inch tyres of 18 inches or more accounted for 33.7% of the sales of tyres for passenger cars, up 2.7%p YoY. This is based on Hankook’s global top tier technologies and quality. In particular, the stable growth of high-inch tyres over 18 inches in major markets such as South Korea, North America and China has further consolidated its premium brand image.
Moving forward, Hankook plans to further solidify its standing as a premium brand by expanding sales of high-inch tyres (over 18 inches) in major markets, supplying OE tyres for premium cars and strengthening product competitiveness. It will also provide a bridgehead for gradual sales improvement by optimizing distribution strategies for each region overseas, including a diversified product portfolio and continuous expansion of sales channels based on global production and distribution networks, to help the company overcome the difficult market environment.