Kumho Tire reported record quarterly sales of 1.21 trillion won ($907 million) in the first quarter of 2025, up 15.5% year-on-year, driven by a 27.6% jump in sales of original equipment tires to automakers. Operating profit slipped slightly by 0.6% to 144.8 billion won, resulting in an operating profit margin of 12%.
The South Korean tire manufacturer’s growth strategy centers on premium products, with high-inch tires of 18 inches and above accounting for 42.6% of total sales. Electric vehicle tires represented 17.9% of the company’s supply, reflecting Kumho’s expanding presence in the rapidly growing EV market.
Kumho has been making significant inroads as an OEM supplier for electric vehicles, securing contracts with models including the Kia EV6, Kia EV9, and Volkswagen ID.4 for 2024 and 2025. The company has also maintained strong OEM relationships with Hyundai, supplying tires for most of the automaker’s lineup.
Despite the record sales performance, market analysts express concern about potential challenges in the second quarter. The possibility of new US tariffs and increasing global raw material costs could negatively impact Kumho’s performance through mid-year.
To address these challenges and continue its growth trajectory, Kumho plans to expand production capacity at its existing global facilities while establishing a new factory in Europe. Poland, Portugal, and Serbia are under consideration as potential locations for the new European plant. The company aims to reach a total tire production capacity of 65 million units this year across its eight global factories.
