Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Nexen Tire boosts global expansion with value-added tires
Nexen Tire's research and development center in Seoul / Courtesy of Nexen Tire
By Lee Min-hyung
Korean tire firm eyes Middle East, Australia, Japan as next revenue areas
Nexen Tire is ramping up efforts for expansion into a broader range of overseas markets, strengthening marketing activities and sales networks not just in its core markets, such as Europe and North America, but also across the Middle East and the Asia-Pacific region.
The Korean tire manufacturer achieved an earnings surprise in the first quarter, particularly in Europe where it chalked up quarterly sales of 316.5 billion won ($230 million). The robust sales there helped the company report record quarterly sales of 771.2 billion won. Europe accounts for some 40 percent of the firm’s total annual sales.
This was driven by solid demand for the firm’s premium tire products, used for a group of luxury automakers in Europe.
Starting from 2016, Nexen started supplying tires to European premium carmakers such as Porsche, and the company has since gained a strong foothold by diversifying its supply channels to other globally-renowned automakers.
Nexen Tire's manufacturing facility in Zatec, the Czech Republic / Courtesy of Nexen Tire
Nexen Tire’s factory in Zatec, the Czech Republic, is considered an optimal location, offering a strategic advantage for the company to supply tires to some 30 carmakers operating within a 400-kilometer radius. The tire firm’s second factory in the same region is also expected to be in full operation sometime around the end of 2025, enabling the firm to stably supply its products to global auto clients.
The company is also moving to take a flexible approach to deal with a lingering tariff uncertainty in the United States. Nexen Tire said it is increasing sales of high-value products and adjusting local prices.
Nexen plans to mitigate potential tariff-related profitability risk by increasing sales in non-American markets, such as the Middle East and the Asia-Pacific.
The Middle East is emerging as the firm’s next major growth engine, ranking third in Nexen’s overseas sales contribution. Since 2012, Nexen has been building its presence in the region through partnerships with local entities, including Dubai’s taxi fleets.
Nexen is strategically focusing on supplying high-performance tires tailored to local conditions, where demand for luxury cars remains strong.
Australia is also emerging as one of the firm’s major growth markets, with both total vehicle ownership and per-capita car ownership rates among the highest in the world.
A promotional image of Nexen Tire's N'FERA premium tire / Courtesy of Nexen Tire
Nexen Tire is strengthening its distribution capabilities with strategically located warehouses in Australia. The strong preference among Australian customers for large vehicles, such as pickups and SUVs, makes the country a profitable market for Nexen, allowing the company to supply high-inch tire lineups with higher margins.
Southeast Asia represents another promising growth area, driven by the region’s rapid economic development and the expansion of its automotive industry.
Nexen has partnered with local distributors and plans to refurbish around 80 retail stores by the end of 2025 to increase its brand visibility and support various promotional campaigns.
The company is working to strengthen the presence of its premium products in the region, with plans to use Thailand as a base for expanding its dealer network into Vietnam, Malaysia and other Asian markets.
Japan is another market with strategic significance to Nexen Tire, as evidenced by its outstanding sales growth of 38 percent in the first quarter of this year from a year earlier.
“Our goal is to maintain competitive edges in core markets, such as Europe and the U.S., while pursuing balanced growth all across the aforementioned emerging regions,” a Nexen Tire spokesperson said. “We will continue to strengthen our locally tailored sales and marketing strategies to become a truly global brand.”