Hankook Tire & Technology stock (KR7000240002): earnings outlook and EV tire demand in focus

Hankook Tire & Technology remains in the spotlight as investors digest its latest quarterly results and growing exposure to electric-vehicle tire demand. We outline the core business drivers and what recent developments could mean for global and US-focused investors.

Hankook Tire & Technology has stayed on investors’ radar after publishing its results for the first quarter of 2024 on April 26, 2024, reporting higher revenue and operating profit year over year amid robust demand for high-value tires, according to Hankook Tire media center as of 04/26/2024. The South Korean tire maker also highlighted its growing presence in electric-vehicle (EV) original equipment (OE) fitments, particularly in North America and Europe, as noted by Reuters as of 04/26/2024.

As of: 16.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Hankook Tire
• Sector/industry: Automotive components, tire manufacturing
• Headquarters/country: Seoul, South Korea
• Core markets: Original equipment and replacement tires for passenger cars, SUVs, light trucks and commercial vehicles worldwide
• Key revenue drivers: High?inch passenger tires, premium and EV?optimized tires, replacement market demand
• Home exchange/listing venue: Korea Exchange (KRX), ticker 000240
• Trading currency: South Korean won (KRW)

Hankook Tire & Technology: core business model

Hankook Tire & Technology operates as a global tire manufacturer with a focus on passenger car and light truck tires, truck and bus radials, and specialty applications. The group generates most of its sales from the replacement market, but original equipment supply agreements with major automakers in Europe, North America and Asia are an important pillar, according to the company’s 2023 annual report published on March 19, 2024, as cited by Hankook Tire investors as of 03/19/2024.

The company has positioned itself in the higher value segment of the tire market by emphasizing larger rim sizes, often 18 inches and above, as well as high-performance products. This strategy aims to support margins compared with lower-priced mass-market segments, and has been visible in the rising share of so-called high-inch tires in the sales mix over recent years, according to the same 2023 annual report released on March 19, 2024, referenced by Hankook Tire investors as of 03/19/2024.

Geographically, Hankook Tire & Technology generates revenue across Asia, Europe, North America and other regions, with manufacturing plants in South Korea, China, Europe and the United States. The company has emphasized the importance of its Tennessee plant for supplying the North American market, helping to reduce logistics costs and respond more quickly to shifts in US demand, according to a company profile updated on February 27, 2024, by Hankook Tire company overview as of 02/27/2024.

Beyond pure tire production, Hankook Tire & Technology invests in research and development centers in Korea, the United States, Germany and China. These facilities support product development for electric vehicles, high-performance tires and digital tire solutions such as monitoring technologies. R&D spending is primarily aimed at maintaining competitiveness in premium fitments and complying with regional regulatory standards, based on the R&D description in the firm’s 2023 sustainability report released on April 30, 2024, as summarized by Hankook Tire sustainability report as of 04/30/2024.

Main revenue and product drivers for Hankook Tire & Technology

The company’s latest available full-year figures for 2023, published on February 7, 2024, show consolidated revenue of approximately KRW 8.95 trillion and operating profit of about KRW 1.44 trillion, both up versus 2022, as reported by Hankook Tire media center as of 02/07/2024. Management attributed the performance to strong sales of high-inch passenger car tires and better product mix, along with the benefit of more normalized raw material costs.

In the first quarter of 2024, Hankook Tire & Technology recorded revenue of about KRW 2.33 trillion and operating profit of roughly KRW 410.9 billion, representing year-over-year growth of around 1.2% in sales and 11.3% in operating income compared with the first quarter of 2023, according to the earnings release dated April 26, 2024, reported by Hankook Tire media center as of 04/26/2024.

High-inch passenger car tires remain a core driver. In 2023, the share of tires with rims 18 inches and above in the passenger car segment increased, supporting pricing and profitability, based on performance indicators presented in the 2023 annual report issued on March 19, 2024, by Hankook Tire investors as of 03/19/2024. These products typically command higher margins due to their use in premium vehicles and higher performance requirements.

Another major theme is Hankook’s growing participation in the EV tire market. The firm supplies original equipment tires to global electric vehicle makers, including several leading brands, with EV fitments accounting for an increasing share of OE volume. In the first quarter of 2024, the company highlighted continued growth in EV tire supply, particularly in Europe and North America, according to commentary in the earnings statement dated April 26, 2024, by Hankook Tire media center as of 04/26/2024.

The replacement market also plays a structural role. Hankook Tire & Technology serves distributors, retail chains and service centers in major regions, with demand influenced by vehicle miles driven, fleet utilization and seasonal trends. North American replacement demand benefited from stable utilization of passenger vehicles and light trucks in 2023, according to a regional performance overview included in the 2023 annual report published on March 19, 2024, via Hankook Tire investors as of 03/19/2024.

On the cost side, raw materials such as synthetic rubber, natural rubber and petrochemical derivatives are key inputs. The company noted that a more stable raw-material price environment supported profitability in 2023 compared with 2022, according to its February 7, 2024, results announcement, as reported by Hankook Tire media center as of 02/07/2024. However, management also pointed out that currency movements and logistics expenses remain variables to monitor.

For US-focused investors, Hankook’s US production footprint and exposure to North American auto demand are relevant. The Tennessee plant is designed to manufacture tires for passenger cars, SUVs and light trucks tailored to the North American market, and the company has announced capacity expansions in recent years to support growth in high-value products, according to facilities information updated on January 15, 2024, by Hankook Tire global locations as of 01/15/2024.

Conclusion

Hankook Tire & Technology combines a global tire manufacturing footprint with a strategic focus on premium, high-inch and EV-optimized products, supported by recent revenue and profit growth in 2023 and early 2024. The company’s expanding presence in North American production and EV original equipment positions it to participate in structural trends such as electrification and demand for higher-performance tires. At the same time, earnings remain exposed to raw-material price swings, foreign-exchange movements and regional auto-cycle dynamics, factors that US investors tracking international automotive suppliers may weigh carefully when monitoring developments around the stock.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.