SHERIDAN, WYOMING – November 26, 2024 -NEXEN TIRE, a leading global tire manufacturer, has announced impressive third-quarter results, with sales reaching 708.5 billion KRW, a 2.3% increase compared to the same period last year. This continued growth is fueled by strong performance in the European market and a strategic focus on high value-added products.
European Market Drives Growth
NEXEN TIRE's European market sales surged by 11.9% year-on-year, driven by strong winter tire sales in the replacement tire market and stable original equipment (OE) tire supply to premium car brands. The company's strategic partnerships, such as its collaboration with Manchester City Football Club, have also contributed to increased brand recognition and market share in Europe.
Expansion in Europe
The expansion of NEXEN TIRE's second European plant, which began operations earlier this year, is expected to further boost the company's growth in the region. The plant is steadily ramping up production and is projected to be fully operational by the end of 2025. This expansion will significantly enhance NEXEN TIRE's production capacity and ability to meet the growing demand for its tires in the European market.
Focus on High Value-Added Products
NEXEN TIRE has strategically focused on high value-added products, such as tires 18 inches and larger, to cater to the increasing demand for SUVs and premium vehicles. Sales of these products accounted for 35.9% of total sales in the third quarter, a significant increase from the previous year. The company's second European plant will play a crucial role in supporting the production of these high-demand tires as it reaches full capacity.
OE Tire Supply, R&D, and Quality Enhancements
NEXEN TIRE continues to expand its OE tire supply, securing contracts for seven new vehicle models in the third quarter, including the Kia EV3 and Renault Korea Grand KOLEOS. This brings the company's total global OE fitments to 118, demonstrating its growing partnerships with leading automakers.
The company is also committed to innovation and technological advancement. NEXEN TIRE is leveraging artificial intelligence (AI) and virtual reality (VR) technologies to accelerate the digital transformation of tire development. The company has implemented AI-based performance prediction systems and a High Dynamic Driving Simulator, the first of its kind in the domestic industry, to enhance its virtual development capabilities.
To further strengthen its quality competitiveness, NEXEN TIRE has introduced AI-based automated product inspection systems, ensuring greater precision in tire production. These advanced technologies will help the company solidify its partnerships with global automakers and maintain its competitive edge.
Looking Ahead
"By achieving over KRW 700 billion in revenue for two consecutive quarters, we have laid a stable foundation for growth," said Travis Kang, Global CEO of NEXEN TIRE. "We plan to meet market expectations by continuing our ramp-up at the second European plant and maintaining consistent R&D investments.”
NEXEN TIRE's strong third-quarter performance and strategic initiatives position the company for continued success in the global tire market. The company's focus on European expansion, high-value products, and technological innovation will drive its growth and solidify its position as a leading tire manufacturer worldwide.