Mr. Min is the head of the company’s Budapest-based sales office. In his role he is providing strategic leadership for the premium tire maker’s sales and marketing operations in the Hungarian market.

Q: Please describe the market outlook and future plans, taking into account the post-COVID-19 situation and current market trends, the company’s strategic plans, and objectives.

A: 2023 was a challenging year, with the Europool* manufacturers’ market suffering a 25-30% decline, but even in this difficult market, Hankook managed to maintain its market leader position and could increase its market share. Chinese manufacturers (whose performance is not included in Europool statistics) have taken a significant slice of the market during the year, affecting “European” manufacturers, especially in the performance of low-priced brands. A key challenge for the coming year will be to strengthen our Laufenn brand in the market. We want to focus on the good quality, excellent performance, and reliable manufacturing background of the product to convince customers open to Chinese brands that our product is a much better choice.

*Europool report: statistics commissioned by ETRMA (European Tyre & Rubber Manufacturers’ Association). This report aggregates sales data from tyre manufacturers with a European manufacturing infrastructure. It does not include data from manufacturers without a European factory. Manufacturers with a European factory are commonly referred to as “Europool manufacturers/brands”.

Q: Inflation rates are said to be affecting the tire industry too, with Chinese manufacturers seeming to be taking advantage of the situation, launching a major industrial invasion of Europe. What do you think about this?

A: Inflation and global market changes are indeed affecting many industries, including tire manufacturers. The industry faces many challenges due to price changes and disruption of supply chains. The growing presence of Chinese manufacturers in Europe is creating real and serious competition. Perhaps Hankook’s advantage over Chinese manufacturers is that it is a well-known brand. The market is well aware of Hankook’s commitment to quality and innovation, and it has always been our goal to offer our customers high-quality tires worldwide, including Europe. We monitor price developments in the context of inflation and strive to manage costs efficiently. But our quality and reliability remain unchanged, and we do not compromise on that. We will continue to work to meet our customers’ needs and ensure that our tires deliver the best performance. Sustainability and energy efficiency are also important to us, and we are constantly striving for innovative solutions. These factors also contribute to maintaining and strengthening our market position. We are confident that our long-term strategy and commitment will help us to successfully address the current market challenges.

Q: In recent years, Hankook’s presence in the racing world has become very prominent. What is your goal for the future?

A: Participation in competitive sport plays an important role in our corporate strategy. In recent years, we have increased our presence on race tracks around the world for several reasons. On one hand, racing is an opportunity to promote and showcase the performance of our tires. Success on the race track and the satisfaction of the drivers are clear testaments to the quality and performance of Hankook tires. In addition, the experience and data gained from racing help us to develop and fine-tune our products. On the other hand, participation in competitive sports is intertwined with Hankook’s corporate culture, which emphasizes competitiveness and innovation. Participation in competitive sports encourages our colleagues to develop new technologies and continuously improve their performance. Our goal in racing is not only to promote Hankook tires and brand values but also to contribute to the motorsport community, support talented riders, and gain additional experience that can help us improve our products. Being involved in racing is an important element of our company’s long-term strategy.

Another important achievement for us is that Hankook has become the official and exclusive technical partner and tyre supplier of Formula E from 2023. The iON race tires are made from approximately 30 percent sustainable materials and can be used in both dry and wet conditions, contributing to further resource conservation. The tires’ extended lifespan is also a groundbreaking step, as Hankook fully recycles the tires after each racing weekend. With this initiative, Hankook not only provides excellent performance for Formula E racers but also caters to the owners of electric cars. The new street tires of the iON family (Hankook iON evo for summer and Hankook iON Winter for winter) are specifically designed for eco-friendly mobility. Therefore, through Formula E, Hankook demonstrates its commitment to modern and sustainable motorsports and mobility.

Talkin’ about Hungary, our latest success is that the top two finishers of the Hungarian Rally Championship also used Hankook tires. This is a great pride for us, and we congratulate the drivers. We hope to achieve further success on the racetrack in the future and strengthen the reputation and recognition of the Hankook brand.

Q: In the context of rising energy prices, what measures have been taken in the Hungarian factory of Hankook to increase energy efficiency and what sustainability initiatives are underway (e.g., use/introduction of alternative energy sources or optimization of energy use)?

A: Energy efficiency and sustainability are important aspects for Hankook, and we are constantly striving for innovative solutions. Through new investments and upgrades, the energy demand of our manufacturing processes have been reduced by more than 70,000 GJ in the period 2021-2023. During this period, nearly 30 significant improvements were made. The winter heating of the production halls will be based entirely on this winter’s waste heat recovery. The development of an on-site solar power plant is currently in the technical preparation phase.

Q: Can you tell us something about your R&D work? What are the main trends and directions?

A: R&D (research and development) is of paramount importance for the entire Hankook Group. Continuous innovation and technological development are essential to keep our company competitive and to offer quality tires that meet our customers’ expectations. In recent years, we have followed the following main trends and directions in R&D:

Sustainability: environmental sustainability is becoming increasingly important in the automotive industry. Accordingly, we place great emphasis on the development of green technologies that help reduce the environmental footprint of tires, for example by using low rolling resistance tires and recycled materials. Hankook is taking important steps to facilitate the mobility transition towards zero-emission vehicles. With our new iON tire range, we have focused on electric vehicles and sustainability. When developing iON tires, we focused on benefits such as further reduction of rolling resistance, lower rolling noise, high flexibility, and extended range for electric car drivers with a single battery charge, as well as improved driving experience. Hankook iON tires also help to reduce carbon emissions.

Performance and durability: the performance and safety of cars also depend on the quality of their tires. Consumers are demanding more and more, and we want to meet these demands by continuously improving our tires. Our R&D work therefore aims to stimulate innovation, improve quality, increase environmental sustainability, and meet our customers’ needs. In this area, we are continuously working together within the whole Hankook Group to be at the forefront of tire development on a global scale.

Q: What is the place of the Hungarian factory within the Group?

A: Hankook Hungary plays a prominent role within the Hankook Group. Our factory is located in the European region, serving the European market and is an important part of Hankook’s global manufacturing network.

Q: I know that social responsibility is important to you. How exactly do you put this into practice?

A: Hankook is involved in environmental and social responsibility initiatives around the world, such as community projects and education. In Hungary, for example, Hankook’s Tire Donation program has a decade-long history, with the company providing tires free of charge to charitable foundations, associations, and non-profit organizations that do important work for the community. Launched in the summer of 2013, the Employee Volunteer Program has completed 300 projects over the years, with nearly 1,000 of our colleagues volunteering a total of 25,000 hours. In 2017, we launched the HOPP – Hankook Education Program, which supports education and allows schools to apply for funding to upgrade their equipment fleet.  Hankook is a global company that believes deeply in being an integral part of the community, wherever its factories are located in the world.