Hankook targets 50% sales growth backed by US, Europe capacity expansion

Seoul – Hankook Tire & Technology has unveiled a ‘corporate value-up plan’ targeting consolidated revenue of KRW30 trillion (€20.4 billion) by 2031, up 50% from an estimated overall revenue of KRW20 trillion in 2025.

The Korean group expects capacity expansion, high-value products and stronger EV positioning in the tire business, as well as efficiencies within its automotive thermal management unit to drive growth until the end of the decade.

Under the plan, published in September, the group seeks to reduce consolidated debt-to-equity ratio from 101% in the first half of 2025 to around 70% by 2031.

For its tire business, Hankook said it is targeting an operating margin of about 14% through 2028, compared with its five-year average of 12.1% and the top-five industry average of 8.9%.

Tire revenue is projected to grow at a compound annual rate of 6% by 2028, from a 2025 baseline, versus around 2% for the global market.

Hankook said it planned to increase its passenger car and light truck (PC/LT) tire capacity by 6% from 94 million units in 2025 to 100 million units by 2028.

Growth will be led by capacity expansion at its plants in Clarksville, Tennessee and Racalmas, Hungary, while Indonesia, China and South Korea will maintain balanced output levels.

The tire maker expects to increase truck and bus radial (TBR) tire capacity more sharply — up 40% from 4.1 million units in 2025 to 5.9 million units in 2028 — again led by new production at the US and Hungary plants.

The Korean group anticipates that the expansion programmes will help boost sales of “high-inch and high-value” products and mitigate tariff exposure through increased local production.

‘Facility upgrades, EV infrastructure and factory-level rebalancing’, said Hankook, will enhance efficiency and regional competitiveness.

In terms of product focus, Hankook aims to sustain a compound annual growth rate of above 10% in 18-inch and above tire sales through 2028.

This, it said, will be achieved by “customised product lineup” tailored to regional demand and vehicle types, expanding in the EV and premium markets.

Under its “EV 1st” strategy, the company targets a 50% EV share in its OE PC/LT business by 2028, supported by its iON product line.

In the replacement market, Hankook said it aims to achieve an overall 45% EV tire share across product categories over the next three years, thereby “build market leadership” in the segment.

In the thermal management business, the Korean group said it aimed to strengthen “sustainable growth foundation” through financial stability and improved financial structure.

Here, the group said, it will drive structural change and recovery through “operational efficiency and cost-saving initiatives.”

According to the presentation, these measures are intended to “accelerate growth and sustainable profit generation” while maintaining “strong cash generation and capital efficiency.”