NEXEN TIRE has reported record annual revenue for 2025, supported by higher output from its expanded European plant and stronger regional distribution.

The South Korean tyre maker said preliminary revenue rose to around USD 2.2 billion , with operating profit of USD 117 million. The company first surpassed USD 1.4 billion in annual sales in 2019 and has now exceeded USD 2 billion for the first time, despite a volatile global trading environment.

Sales growth was driven largely by the second phase of the European plant expansion, which increased capacity and supported volumes amid trade uncertainty, including the impact of US tariffs. The company said it pursued both volume and quality growth by strengthening competitiveness across its core businesses.

In original equipment, Nexen Tire continued to expand supplies to more than 30 global carmakers, offering products for electric vehicles and internal combustion engine models. Replacement tyre sales grew steadily, supported by region-specific product strategies.

US tariffs had a limited effect on profitability, the company said. While policy uncertainty weighed on demand, Nexen mitigated the impact by diversifying distribution channels and increasing sales of larger-inch tyres to improve its product mix. Cost efficiency measures, alongside stabilising raw material prices and freight rates, also supported margins.

Alongside its earnings update, the company outlined its strategic priorities. During 2025 it launched its EV ROOT range, designed for use across both electric and conventional vehicles, and expanded original equipment partnerships, including with premium brands. It also established new overseas sales bases to strengthen regional distribution.

Product quality and management practices received external recognition. In the fourth quarter, the company’s N’FERA Sport tyre was runner-up in the tyre category at the New Product Awards at the SEMA Show in the US. Nexen Tire was also named an excellent company for quality competitiveness for the fifth consecutive year at the Korea National Quality Awards and received the Presidential Award at the Labour-Management Culture Awards.

For 2026, the company said it would respond proactively to shifting global trade policies while focusing on strengthening sales capabilities and achieving quality-led growth. Plans include sales-focused marketing to raise brand visibility, closer customer cooperation and further development of replacement tyre sales, building on the reputation of its original equipment products.

Nexen Tire said it would continue to refine its product and distribution mix, accelerate innovation using artificial intelligence and virtual technologies, and expand downstream distribution in key markets.

“Despite growing uncertainty in the global trade environment, we achieved a meaningful milestone by surpassing KRW 3 trillion in annual sales for the first time,” said John Bosco (Hyeon Suk) Kim, Chief Executive of the company. “We will continue to pursue both volume and quality growth by strengthening our product and distribution competitiveness in global markets.”

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Hankook Tire, the exclusive tyre supplier for the ABB FIA Formula E World Championship, played a central role in the season’s pivotal Japanese double-header. As the official race tyre for all competitors, the company’s iON Race compound was put to the test under extreme and shifting conditions during Rounds 14 and 15 of Season 12 at the 2026 TDK Tokyo E-Prix.

The weekend’s on-track action produced two dramatic winners. CUPRA KIRO’s Dan Ticktum snatched victory in Round 14 with a last-corner overtake on Jake Dennis, while Nick Cassidy completed the podium. The following day, Mahindra Racing’s Nyck de Vries claimed Round 15, finishing ahead of Cassidy and Dennis, who secured second and third respectively. The entire paddock also observed a period of remembrance for the late Cyril Blais.

The 2.575-kilometre temporary circuit, featuring 18 corners and situated around Tokyo Big Sight, hosted its first-ever night races, drastically altering track conditions from practice to competition. Unstable weather compounded the challenge, with a Sunday thunderstorm cancelling Free Practice 3 and leaving a damp, drying surface for Round 15 that demanded constant adaptation in tyre warm-up and strategy.

Throughout the weekend, Hankook’s iON Race tyre demonstrated reliability across the evolving grip levels and temperature swings. Following the Tokyo results, Dennis retains the championship lead with 146 points, narrowly ahead of Mitch Evans and Pascal Wehrlein. The title battle remains fiercely contested and will be resolved at the season-ending Hankook London E-Prix double-header on 15–16 August.

Manfred Sandbichler, Senior Director, Hankook Motorsport, said, “Bringing Formula E night racing to Tokyo for the first time made this a distinctive weekend and one of the more unusual tyre assignments of our season. The contrast between afternoon running and the 20:05 races shaped how teams prepared for both events, and the iON Race managed that transition and the changing weather conditions well, delivering consistent and predictable performance as the circuit cooled through the evening.”

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Tegeta Green Planet recently contributed to the ‘Circular Future’ green camp, an environmental education initiative organised by CENN and funded by the European Union. The camp, which hosted 23 teenagers from the Adjara and Kakheti regions, was designed to deepen ecological understanding, advocate for waste-free systems, and inspire long-term behavioural change among the next generation.

Throughout the week-long gathering, young attendees engaged with forward-thinking methods for minimising refuse, prolonging product life cycles and improving separation and recovery processes. Interactive workshops translated abstract circular economy theories into tangible daily actions, equipping participants with the know-how to conserve materials and shrink their personal environmental toll.

A noteworthy component of the programme occurred on 22 July, when a specialised seminar titled ‘Circular Economy: Waste Reduction and Recycling for Public Health’ was convened. Co-hosted by Tegeta Green Planet, the UNDP and the Waste Management Business Association, the seminar examined the intersection of ecological integrity and human well-being, illustrating how robust recycling systems directly benefit community health outcomes.

Closing the day’s agenda, Tegeta Green Planet’s Director, Shalva Akhvlediani, offered an in-depth look at the Extended Producer Responsibility model currently unfolding in Georgia. He traced the journey of end-of-life vehicle components – from used tyres and spent lubricants to depleted batteries – through collection, transport and reprocessing channels. Akhvlediani also highlighted his organisation’s network of over 350 domestic producers and importers, stressing that youth education remains a cornerstone of their mission. The floor was then opened for a lively exchange, where students posed probing questions, debated local environmental dilemmas and floated their own grassroots suggestions, reinforcing the message that responsible resource use begins with informed individual choices.

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Nexen Tire reported second-quarter revenue of KRW 891.3 billion and operating profit of KRW 34.3 billion, as growth in Europe and higher sales of premium products supported performance despite rising costs and geopolitical uncertainty.

Revenue increased 10.8 per cent from a year earlier, driven by demand in key markets, particularly Europe, the company said .

The tyre manufacturer said its strategy of expanding original equipment (OE) supply programmes and diversifying replacement (RE) tyre sales helped support growth amid weaker demand in the automotive market. Sales of 18-inch and larger tyres accounted for 38.8 percent of total sales, up 3.6 percentage points from a year earlier, reflecting a greater focus on premium products.

Profitability came under pressure as higher raw material prices and increased ocean freight rates raised costs. The company also incurred one-off expenses following the final ruling on US anti-dumping duties, which resulted in a higher tariff rate than previously expected.

Europe was the strongest-performing region during the quarter, with revenue reaching KRW 407.2 billion, the first time quarterly sales in the region have exceeded KRW 400 billion.

The company attributed the growth to higher OE sales from its European manufacturing plant, business expansion in the UK, Türkiye and other markets, and improved distribution and logistics following the addition of a finished-goods warehouse at the plant.

In South Korea, demand for electric vehicle (EV) and sport utility vehicle (SUV) tyres remained strong. Nexen Tire said its expanding OE portfolio, which includes the Hyundai IONIQ 6, Kia's EV3 to EV9 models and other domestic electric vehicles, supported higher OE revenue and increased sales of larger-diameter tyres.

The company also said continued growth in rental sales within the replacement market improved its product mix, while its first OE supply agreement with BYD strengthened its position in the global EV market.

Alongside its financial results, Nexen Tire said it had expanded its OE supply during the quarter to electrified models including BYD vehicles and the Hyundai STARIA EV. Supply to premium automotive brands also increased from a year earlier, supported by research and development initiatives, including AI-based performance prediction technologies.

"Despite growing cost pressures from external factors, we have continued to achieve top-line growth on the back of strong sales in key markets," said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. "With the stable ramp-up of the second-phase expansion at our European plant and the results of our distribution improvements in North America, we expect more tangible improvements in earnings."

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Pirelli has officially communicated to all Formula 1 teams the tyre compound selections for the upcoming Dutch, Spanish and Italian Grands Prix. The Italian manufacturer has opted for the medium-range C2, C3 and C4 compounds for the events at Zandvoort and the new Madrid circuit, while the Monza race will see the softest available tyres, the C3, C4 and C5, deployed.

For the Dutch Grand Prix at Zandvoort, Pirelli has confirmed the same compound choice as the previous year. The coastal circuit is defined by its medium and low-speed corners, including two banked turns, which place significant vertical and lateral loads on the tyres and demand high aerodynamic downforce. The track surface itself offers low inherent grip, a challenge compounded by sand from the nearby beaches being blown onto the asphalt, further affecting tyre performance.

The Italian Grand Prix at Monza presents a contrasting challenge, with its recently resurfaced track encouraging teams to run low-downforce configurations. The pit lane loss time for a tyre change is among the highest of the season, incentivising teams to extend stints and manage degradation to achieve a one-stop race. However, the potential for high ambient temperatures could complicate this strategy, making tyre management more difficult.

Making its debut on the calendar as the Spanish Grand Prix, the semi-permanent street circuit in Madrid features 22 highly varied corners, significant elevation changes and the longest banked turn in the championship. Simulations indicate that the loads on the tyres are comparable to those at Silverstone and Spa-Francorchamps. Consequently, Pirelli’s selection of the medium-range compounds is designed to favour a two-stop strategy and offer greater protection against overheating, a risk to which the softer C5 compound would be particularly vulnerable in warm conditions.

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