Hankook & Co. Business Model Canvas

Universities, national labs and software providers accelerate compound design, EV tire acoustics and battery chemistry through collaborative projects and shared datasets; EVs reached roughly 15% of global light‑vehicle sales in 2024, increasing demand for such R&D. Data partnerships enable high‑fidelity simulation, AI‑driven design and connected features; shared IP frameworks shorten time‑to‑market while capping risk. Standards bodies (UNECE, ISO) align products with global safety and regulatory demands.

OEM alliances with 20+ global automakers secure fitments and co‑engineering; EVs ≈15% of global car sales in 2024 increase integrated tire‑battery demand. Raw‑material contracts anchor costs (synthetic rubber market USD 52.3B in 2024); multi‑sourcing and hedging reduce volatility. Distribution spans 180+ countries; fleet demand ~30% urban tire volume; recycling pilots cut material spend ~15%.

Global manufacturing network of 8 plants sustains high-throughput production (~60 million units annual capacity in 2024), ensuring consistent quality across regions. Automation and smart-factory upgrades cut defect rates by about 20% and lowered unit costs. Flexible lines handle broad SKU variety and regional specs, while sustainability initiatives delivered ~12% energy use and waste reductions year-over-year.

Hankook & Co. allocates capital to subsidiaries to maximize ROIC, prioritizing units above group WACC and executing M&A, ventures and divestitures. R&D targets EV/premium tread, NVH and battery plate advances, with testing and IP generation. Global manufacturing (8 plants, ~60M unit capacity in 2024) drives automation-led cost and quality gains; supply-chain dual-sourcing and aftermarket/digital channels support revenue resilience.

Patents in compounds, tread designs and battery technologies secure Hankook & Co's competitive edge by locking in material and energy-density innovations. Proprietary processes enhance durability, lower rolling resistance and improve cold-cranking through controlled compound curing and microstructure management. Extensive testing data sets and simulation models accelerate development cycles and reduce time-to-market. Global trademarks ensure consistent brand positioning across markets.

Core resources combine top-10 global tire and battery positions, OEM relationships with Mercedes‑Benz, BMW and Volkswagen, and ~20,000 employees (2024). Global R&D centers (Korea, Germany, US), patents, test labs and automated plants sustain innovation and scale. Holding-company treasury and hedging programs secure CAPEX and commodity/FX risk.

Combined tire and battery offerings simplify sourcing for OEMs and fleets by consolidating suppliers and reducing procurement touchpoints by up to 50%, while coordinated logistics and service can lower total cost of ownership by around 12% in fleet pilots. Data-enabled products support predictive maintenance, cutting downtime up to 30%, and bundled warranties with programs boost aftersales retention by ~20%.

Hankook bundles high-performance low-rolling-resistance tires and AGM/EFB batteries to boost EV range 5–7% and improve fuel economy ~3–4%, serving 180 countries with OEM-validated designs and warranty claim rates targeted <1% in 2024. Bundles cut fleet TCO ~12%, reduce downtime up to 30% and raise aftersales retention ~20% via data-enabled maintenance and global support.

Portals enable ordering, tracking and warranty management while handling up to 75% of routine customer interactions (Zendesk 2024), reducing manual tickets. Data dashboards deliver real-time performance, inventory and pricing views with minute-level refreshes for supply chain visibility. APIs integrate directly with customer ERP and DMS, shortening onboarding from months to days. 24/7 access cuts friction and can lower average response time by as much as 60%.

Dedicated key-account teams and SLAs drive OEM and fleet coordination, with joint planning and quarterly KPI reviews improving delivery and quality.

Portals and APIs handle 75% of routine interactions (2024) and cut onboarding to days; 24/7 access lowers response time by ~60%.

Joint R&D cuts time-to-market up to 30%, pilots run 6–12 months and validation costs fall ~20%.

Tire shops, big-box retailers and service centers perform fitment for Hankook via a network of over 10,000 retail and installer partners worldwide in 2024; in-market training and merchandising lifted conversion rates at partnered outlets by double digits in pilot programs, while local availability reduces purchase friction for end-users. Robust warranty and aftersales services drive repeat purchase and loyalty.

Hankook & Co. channels combine global OEM account teams, regional wholesalers, 10,000+ retail/install partners and DTC/marketplaces to secure volume and reduce lead times. Key metrics: OEM contracts for predictable revenue, 95% fill rate, 28% fewer stockouts, 26.3% e-commerce share and fitment-driven conversion up to 30%. Fleet telematics (≈70%) enables subscription/pay-per-mile services.

Logistics, ride-hailing and delivery fleets prioritize TCO and uptime, with high-mileage use cases often exceeding 100,000 km/year and demanding durable, serviceable tires; effective tire programs can lower fleet TCO by 5–15% and improve uptime toward 99% SLA targets. Centralized procurement favors bundled solutions and long-term contracts, while telematics and data-driven SLAs are critical for predictive maintenance and cost control.

OEMs (78M LV production in 2024) demand validated, multi-year platform suppliers; replacement market ~$130B (2024), online 25% and winter tires EU 35% shape retail; fleets seek 5–15% TCO savings and >99% uptime; industrial/off-highway and ESS integrators require rugged specs, certifications (IEC/UL) and local service.

R&D and testing demand steady funding for lab equipment, prototypes and field trials, with tire-industry R&D typically 1.5–3% of revenues and leading firms spending tens to hundreds of millions annually (2024 industry range). Talent and simulation/AI software add high recurring costs, often millions per year. Regulatory and certification testing can run $50k–$200k per homologation; IP filing and defense commonly cost $10k–$30k per patent internationally.

Raw materials (rubber, carbon black, steel) ≈60% of COGS; natural/synthetic rubber volatility in 2024 kept hedging and multi‑year contracts central. Manufacturing (labor, utilities, depreciation) drives 30–50% of COGS; automation can cut marginal cost 10–30%. R&D ~1.5–3% of revenue; logistics and inventory carrying (20–30% annualized) are major overheads.

Revenue streams include sales of flooded, AGM and EFB units to OEMs and aftermarket channels, with OEM contracts and aftermarket replacement both contributing materially. Demand is driven by 3–5 year replacement cycles and rising start-stop adoption—about 50% of new vehicles globally in 2024—boosting AGM/EFB uptake. Premium SKUs command higher margins, while service programs and warranties increase repeat sales and reduce churn.

OEM tire sales (~40% of 2024 shipments) and replacement channel (~60% volumes) drove KRW 8.1T tire revenue in 2024, with aftermarket margins above OEM. Premium SKUs and AGM/EFB batteries (start-stop in ~50% of new cars) raised ASPs. Services (fleet, telemetry, warranties) plus holding income (dividends KRW 68bn, royalties KRW 9bn) supply recurring fees and cash buffers.