Kumho Tire has posted record-breaking Q1 2025 sales, driven by surging demand from automakers and a growing share of EV tyre supply. But the outlook remains uncertain amid rising trade tensions and cost pressures.
The South Korean manufacturer reported quarterly revenue of 1.21 trillion won ($907 million), up 15.5% year-on-year. This performance was fuelled by a 27.6% increase in sales of original equipment (OE) tyres to global automakers. Operating profit declined slightly by 0.6% to 144.8 billion won, reflecting higher input costs, but the operating margin held steady at 12%.
Kumho continues to focus on high-value segments, with tyres sized 18 inches and above now accounting for 42.6% of total sales. Electric vehicle (EV) tyres made up 17.9% of the product mix, highlighting the company’s growing role in EV platforms.
Key OE fitments include the Kia EV6, EV9, and Volkswagen ID.4, alongside Kumho’s ongoing supply relationship with Hyundai across its vehicle range. These partnerships support the company’s strategy to expand in the premium and EV tyre segments.
Despite the strong start to the year, analysts warn that the second quarter may bring new headwinds. US trade policy developments, including the potential for new tariffs, and rising global raw material costs pose risks to Kumho’s profitability.
In response, the company is investing in production expansion. Kumho plans to increase capacity across its eight existing plants and is currently evaluating European locations — Poland, Portugal, and Serbia — for a new manufacturing facility. The firm aims to reach a total annual capacity of 65 million tyres in 2025.
Kumho’s strong Q1 reflects key tyre industry trends: the shift toward EV-specific fitments, increased demand for larger-diameter tyres, and the strategic importance of OEM partnerships. As the European EV market grows, the company’s planned EU factory aligns with broader sector moves to regionalise supply chains and support sustainable mobility.
Tagged with: Kumho Tire, EV tyres, OEM tyre supply, tyre manufacturing, premium tyres, electric vehicle tyres, tyre sales Q1 2025
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