Indian industry liberalization has indeed boosted the fortunes of South Korean giants in the country. In less than two decades of their presence, MNCs like LG, Samsung and Hyundai have become household names in India. But there is another company called Hankook Tyre which is waiting in its wings and is looking to replicate its compatriots’ success and become the most sought-after brand in the burgeoning tyre aftermarket business. Based in Seoul, Hankook Tyre is the seventh largest tire company in the world, manufacturing tyres for various segments, including campers, trucks, buses, passenger and racing cars, SUVs and light trucks.
In his maiden interaction with MOTORINDIA, Mr. Sung Won Lim, Chief Representative, Hankook Tyre Delhi Office, said: “As an emerging market, India has the great potential and is one of the biggest tyre markets in the world. So Hankook was keeping a close watch on the Indian market for a decade and supplied optimal product for Indian customers these days. We are newcomer to India market. As is clear, the company has substantial experience in the tyre market and brings the same quality products for Indian customers. As times goes by, we are sure Hankook will have a widespread presence in the country.”
Hankook’s foray to the Indian market began a decade ago when it started importing tyres into the country through various distributing channels. However, it made a formal presence nearly five years back when it opened the Delhi office, headed by Mr. Lim, with the objective of cracking the diversified tastes of the Indian market. Going forward, the South Korean giant aims to be counted amongst the handful of established tyre brands in India that are approved by the OEMs in both passenger car and commercial vehicle segments. Simultaneously, it will also be continuously expanding its presence in the aftermarket.
Mr. Lim asserted: “Even if we are one of the top companies for global car maker as an OEM supplier, presently in India we are supplying tyre to exporting vehicle only from India. We know that our product will be friendlier to the customer if we expand in the domestic OEM segment but it needs time. For the non-direct space, we are covering entire India as we have very good distributors & dealers for our product sales. We are quite optimistic about the fact that our products are developed for Indian conditions to meet the customer’s varied needs. Moreover, our R&D team visits India regularly for market and product research, which is very necessary to supply the right product. As a truly global brand, we have a high self-esteem on our product. Of course, our products have acquired BIS before coming to the market. We are now seriously considering entry into the domestic OEM sector with our global OEM car maker. Sooner or later, the customer will see Hankook from the OEM segment too.”
Talking about the USPs of its product lines, Mr. Lim affirmed, “We are having a comprehensive range of tyres for the Indian market serving the customer’s better choice. As compared to other players, this complete range of products (by Hankook) is a very big advantage to approach the market prudently. For some sizes in Passenger Car Radials (PCR), our products ranges are the only available options here, and we also give better alternatives to meet various demands in the market such as inch-up and up sizing. In the Truck Bus Radial (TBR) segment our products give good CPKM and long casing life. Furthermore, we customize our products specific to the country’s requirements. Globally, our tyres are known for enhanced driving dynamics, fuel savings, low rolling resisting, wet grip, load carrying capability, etc. I am sure all these factors combined together will give us a headstart like other companies in different industries.”
‘Hankook’ is one of the main brands available in India. In the truck segment, it has cargo truck radials for drive & front wheel, on & off road pattern and tubeless tyres for luxury buses. For PCR, it is offering 95 sizes to market which range from 12“ ~ 20” and run Flat Tyre (RFT), too. During the last five years, it has added up a number of products prior to market demand.
“The product line-up will be strengthened as per the customer needs. Our tyres are designed and produced for Indian roads and are made with international quality standards. Hankook is the highest brand sold in Europe and America, and we are confident of making a good presence in the world’s fastest growing automotive market,” said Mr. Lim.
Some of the leading brands under the Hankook portfolio are Dynamic RA03 (Tubeless), Dynapro ATM RF10 (Tubeless), Dynapro HL (Tubeless), Dynapro HL RA25 (Tubeless), Dynapro HP RA 23 (Tubeless), Dynapro MT_RT03 (Tubeless), Optimo K415 (Tubeless), Optimo K715 (Tubeless), Optimo ME02 (Tubeless), Optimo ME02 K424 (Tubeless), Optimo ME04 (Tubeless), Ventus AH RH07 (Tubeless), Ventus AS RH07, VentuS H101 (Tubeless), Ventus H101, Ventus ME01 K114 (Tubeless), Ventus Sport (Tubeless), Ventus V12 Evo (Tubeless), Ventus V12 Evo K110 (Tubeless), Ventus V8RS (Tubeless).
It may be recalled that Hankook Tyre Co. was originally established in 1941 as the Chosun Tyre Company, but was renamed Hankook Tyre Manufacturing in 1968. It invests approximately five per cent of revenue in research and development and develops cutting-edge technologies through its five global R&D centers meeting regional customer demands and enhancing customer satisfaction through high quality products.
Hankook tyres are available in over 185 countries with a total of eight manufacturing plants across the globe – two units (Geumsan and Daejeon) in South Korea, three units (Jiangsu, Jiaxing, and Chongqing) in China, one manufacturing unit in Hungary and another one at Bekasi, West Java in Indonesia. In October 2013, the company announced plans to open a new factory in Tennessee USA.
Without confirming or denying the company’s plans to set up a facility, Mr. Lim maintained, “As I mentioned before, we have been watching this market seriously. Whether manufacturing locally or not, we think the first priority is offering good products to our valuable customers and let them feel our brand premiumness. We can consider manufacturing locally, but it will need a big decision from our global HQ.”
It is worthwhile noting that Hankook Tyre’s worldwide reputation has largely grown due to its high quality radial tyre production. The company now supplies Tyres as original equipment to numerous automakers across the globe. In addition to producing around 100 million tyres per annum, the company also sells batteries, alloy wheels, and brake pads in other countries. The company has more than 21,000 employees in four regional headquarters, over 30 overseas subsidiaries and five R&D centers around the world, deriving 70 per cent of revenue through overseas markets.
Even though the Seoul-based tyremaking gaint declined to share volumes or projected revenues, industry analysts claim that the company is comfortably clocking one lakh tyres in India on an annual basis and is anticipating a sales turnover of $10 million in the current year.
Mr. Lim stated, without revealing any figures: “It is not the right time to mention sales volumes, but we are constantly growing. On a year-on-year basis, there have been incremental volumes as an increasing number of customers choose Hankook. We think we are much closer to the customer these days. Hankook had been doing the ground research work for the last 4 years. Moreover, our robust tyres are finetuned to meet the expectation of the Indian customer. Although the numbers garnered were not huge, the response has been overwhelming. I am very happy with the way things have shaped up.”
So will $6.72 billion worth Hankook tyres become as ubiquitous like as other South Korean products such as Samsung and LG phones, TVs, air-conditioners and washing machines, Hyundai’s hatchbacks and sedans?
“Definitely, we can be on those lines as we want to be a mainstream player in India and also accepted as a premium tyre brand. Nowadays, we see some significant growth in the market, and we will be growing on par with the market growth. By 2020, India will be the top tyre market in the world. We have some success stories in the market,” Mr. Lim added.