Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Imported tires fast encroach on local market
By Park Jin-hai
Despite a protracted economic slump, imported tires are fast encroaching on the local market on the back of the popularity of imported vehicles.
Meanwhile, local tire makers are facing the double whammy of slow demand both inside and outside the country.
In the first half of this year, nearly 10 percent more tires, or 3.73 million, were imported compared to a year ago, according to the Korea Tire Manufacturers Association.
China-made tires represented almost half of all imported tires, selling 1.9 million in the first six months of the year, up 5 percent.
Meanwhile, American and German premium brand tires enjoyed brisk sales. American tire companies including Goodyear Tire have seen their sales jump 76.7 percent to 204,000 tires, while Germany’s Continental Tires saw a whopping 206.7 percent sales increase to 261,000 tires during the period.
Local experts say that the increasing preference for imported cars can explain the foreign tire makers’ fast market expansion.
Hyundai Motor will be using imported tire brands Michelin and Continental for its luxury Equus sedan that will be launched later this year.
It is the first time the local carmaker is not using local makers’ tires since its first generation Equus was launched in 1999.
Earlier this year, defects in Hankook Tires mounted on the Hyundai Genesis sedans made the carmaker recall all its tires. A total of 43,000 Genesis vehicles were subject to the recall.
From the 2015 Genesis sedan, launched in March, imported tires including Continentals and Michelins have taken the place of local ones.
“When the customers buy luxury domestic sedans, they tend to replace the originally equipped local tires with foreign brands. Thus, carmakers including Hyundai tend to sell premium cars equipped with imported tires in the first place,” said a local dealer.
On the contrary, local tire makers are struggling with decreased demand.
Hankook Tire, Kumho Tire and Nexen reduced production by 3.1 percent to 48.7 million in the first half of the year.
Their domestic sales dropped 4.4 percent to 11.5 million, with exports slipping 2.4 percent to 36.7 million.
Market insiders said the local economic slump led to slow sales in the domestic market, while the strong won also worked against the export of local tires. They say the remaining half of the year will not easy for them either.
Local tire makers’ sales are forecast to drop 0.4 percent in the latter half, with annual total sales contracting 1.4 percent to 97.4 million. An estimated 7.6 million imported tires are expected to be sold, up 3.1 percent, by the end of the year.