Seoul: Hankook Tire and Technology Co., the world's seventh-largest tiremaker by sales, announced it has begun supplying tires for BMW's new iX3 sport utility vehicle (SUV). Hankook is providing its high-performance, electric-vehicle-specific iON evo SUV tires as original equipment for the iX3.
According to Yonhap News Agency, the iX3 is the first model built on BMW's next-generation electric vehicle platform, Neue Klasse. Hankook already supplies original equipment tires for several BMW models and its affiliate MINI, including various sedans and SUVs, as well as the iX electric flagship SUV.
As part of its strategy to strengthen its global brand presence, Hankook supplies original equipment tires for about 300 vehicle models from 40 overseas automakers, such as Audi, BMW, Mercedes-Benz, and Porsche. While these contracts do not significantly boost revenue, they enhance brand recognition and can support higher product pricing over time.
For tire manufacturers, higher margins are generally achieved through replacement equipment tires sold in the aftermarket. Last year, overseas markets accounted for 88 percent of Hankook Tire's total revenue. The company operates eight production plants worldwide, with a combined annual production capacity of 100 million tires. These facilities are located in South Korea, Hungary, the United States, China, and Indonesia.