By Lee Min-hyung
Hankook Tire is set to achieve balanced growth by strengthening its position in the commercial vehicle tire market, the company announced Thursday.
The tire company has already solidified its position as a tire maker for sedans and SUVs, but tires for trucks and buses are also emerging as one of the firm’s major growth pillars, according to the company.
Hankook Tire supplies commercial vehicle tires for global carmakers, such as Mercedes-Benz, Daimler Truck, Stellantis, Hyundai Motor and Kia.
While the number of commercial vehicles is lower than that of conventional cars, tires for trucks and buses have received less attention. However, Hankook Tire’s tire business for such commercial vehicles plays a significant role as a hidden champion, contributing significantly to the company’s sustainable growth within the broader tire industry.
Data also supports the company’s strategic emphasis on commercial vehicle tires. According to the company, its tire sales for trucks and buses account for more than half of its total sales in Europe and North America. By region, North America accounted for 39 percent of the firm’s truck and bus tire sales in 2023, while those of Europe came in at 28 percent.
Hankook Tire is seeking to expand its production lines internationally in response to the rising demand for truck and bus tires. The company is also adopting the strategy to reduce risks associated with potential external political issues, particularly the rise of protectionism.
The tire manufacturer is pushing ahead with aggressive production line expansions in Hungary and Tennessee, United States.
“The strategy aims to minimize the impact of external factors, such as tariffs and regulations, resulting from rising protectionism in the U.S. and Europe,” an official from the company said.
“We also do so to ensure stable and sustainable growth. We will keep strengthening our brand competitiveness in the global market by enhancing production capacity and expanding distribution infrastructures across the globe.”
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