Nexen Tire Surpasses 3 Trillion Won in Annual Sales...Sets Record-High Revenue for 5 Consecutive Years

Sales Up 12% on Stronger Distribution Competitiveness
Expanded Capacity at European Plant Reflected in Results

Nexen Tire has surpassed 3 trillion won in annual sales for the first time in six years, after breaking the 2 trillion won mark in 2019.

Nexen Tire announced on the 4th that last year it posted sales of 3.1896 trillion won and an operating profit of 170.3 billion won. Sales increased by 12% year-on-year, while operating profit decreased by 1.1%.

Last year’s top-line growth was mainly driven by the stable reflection of output from the second-phase expansion of its European plant. It also reflects the company’s efforts to expand sales even as business uncertainty increased, including U.S. section tariffs. In the original equipment (OE) market, the company maintained strong growth by leveraging a diversified portfolio that covers both electric vehicles and internal combustion engine vehicles for around 30 global carmakers, and it continued stable growth in the replacement (RE) segment through region-optimized product strategies.

The imposition of U.S. section tariffs had a partial impact on profitability. In a demand-constrained environment caused by uncertainty in trade policy, the company minimized the impact on its results by diversifying distribution channels by region and improving its product mix through expanded sales of high-inch products. In addition, it offset the pressure on profitability through cost improvement efforts based on enhanced management efficiency, supported by a stabilizing trend in raw material prices and ocean freight rates.

This year, Nexen Tire plans to proactively respond to trade-environment uncertainties stemming from the spread of protectionism, while focusing on strengthening sales capabilities and qualitative growth based on the growth foundation it has built in development and production. To this end, Nexen Tire will carry out sales-driven marketing activities to simultaneously enhance brand exposure and partnerships with customers, and it intends to reinforce its RE sales capabilities by elevating brand value on the back of its premium OE performance.

In addition, the company will pursue qualitative growth through product and distribution mix improvement across the board. It will drive product competitiveness innovation by applying artificial intelligence (AI) and virtual technologies to product development, and will supply new products that meet regional demand in a timely manner. At the same time, it plans to further advance its sales base by strengthening downstream distribution and fostering strategic customers in each key sales region.

A Nexen Tire official said, “Amid growing uncertainty in the global trade environment, we have achieved a meaningful milestone by surpassing 3 trillion won in sales for the first time in our history,” adding, “We will continue to pursue both quantitative and qualitative growth worldwide by strengthening our competitiveness in products and distribution.”

This content was produced with the assistance of AI translation services.