Kumho Tire and Nexen Tire are adopting a strategy that combines both electric vehicles and internal combustion engines to enhance versatility and cost efficiency. Kumho Tire has modified its approach for its EnnoV brand, initially dedicated to electric vehicles, to also cater to internal combustion vehicles. This shift comes amid concerns about the stagnant demand for electric vehicles and the limited resources for diversifying product lines. Similarly, Nexen Tire is focusing on enhancing tire performance to serve both vehicle types under one strategy, emphasizing competitive pricing.
In contrast, Hankook Tire takes an aggressive stance with a dedicated electric vehicle brand, iON, aiming to capitalize on future market opportunities despite current limited market size. Hankook Tire plans to leverage its higher market recognition in electric vehicles by expanding its iON portfolio, aiming to cover a wide range of electric vehicle models such as Hyundai’s Ioniq and Tesla’s Model Y. The company appears to prioritize securing future demand in the emerging electric vehicle market over the saturated internal combustion tire market.
According to industry experts, the shift in strategy among tire companies from exclusive to versatile products is driven by the opportunity to reduce product development and marketing costs and the potential market shrinkage due to the current electric vehicle sales stagnation. Nonetheless, Hankook Tire seems committed to establishing a foothold in the electric vehicle tire market to explore growth potential, given the technological gap that could emerge with the evolving automotive landscape.