In a remarkable demonstration of success, Kumho Tire's recent performance in the European market has exhibited robust growth. The first quarter of 2023 witnessed an outstanding 92% increase in sales compared to the same period last year, reaching an impressive €165 million.
Moreover, quarter-on-quarter figures rose by a solid 15% to €143 million. These exceptional results are viewed as just the initial stage of Kumho Tire's sustained investment strategy, which aims to drive continuous growth within the region.
With a focus on improved competitiveness, expansion of original equipment (OE) sales, and substantial investments in infrastructure, Kumho Tire is poised to elevate its market share in Europe to new heights.
Enhanced Competitiveness:
Kumho Tire has solidified its position in the European market through the establishment of advanced research and development facilities. This infrastructure empowers the company to design and develop increasingly competitive products. The recent accolades received in the 2023 summer tyre tests conducted by influential entities like Auto Bild, Sport Auto, and the ADAC attest to Kumho's commitment to quality. Looking ahead, Kumho Tire plans to further elevate its product offerings, with a significant focus on the expanding electric vehicle (EV) sector. Additionally, the company aims to expand its all-season ranges for passenger cars, SUVs, vans, and trucks, catering to the diverse needs of European consumers.
Expansion of OE Business:
With a strong foothold as a trusted supplier to prominent European original equipment manufacturers (OEMs) such as Mercedes-Benz, Renault, SEAT, Škoda, and Volkswagen, as well as Korean manufacturers Hyundai and Kia, Kumho Tire is ready to broaden its portfolio of OE partnerships in Europe. The company's successful collaboration with Kia on the award-winning Kia EV6, named the 2022 European Car of the Year, exemplifies Kumho's capability to meet and exceed the highest standards of automotive excellence. Through sustained growth, Kumho Tire aims to forge new long-term partnerships with European OEMs, further solidifying its position as a preferred tyre supplier in the region.
Investment in Infrastructure and People:
To support its expanding direct sales operations across Europe, Kumho Tire recognizes the need for increased stock-holding capacity. As a result, the company has already expanded its warehousing facilities in Germany and the UK, with plans for further expansion in the pipeline. Additionally, Kumho Tire is committed to investing in its workforce to sustain the development of its direct sales organization. As the European business continues to flourish, the company will augment its headcount to match the overall growth, ensuring a dedicated and capable team to meet the evolving demands of the market.
Future Plans and Vision:
The President of Kumho Tire Europe GmbH, Gangseung 'Tony' Lee, expressed his delight and confidence in the recent sales results, considering them a positive indication of the company's strategic direction and commitment to global sustainability goals. Exciting plans for further development within the European market are on the horizon, and Kumho Tire eagerly anticipates unveiling more details in the coming months. With their unwavering focus on improved competitiveness, expansion of OE partnerships, and investments in infrastructure and human capital, Kumho Tire is poised to continue its upward trajectory, solidifying its position as a key player in the European tyre market.
