Kumho Tire has launched the Cruzen GT Pro, a tire exclusively for premium sport utility vehicles (SUVs). Although freight and raw material prices are unstable amid the recent war between the United States and Iran, the company plans to achieve a record-high sales target of 5.1 trillion won this year through new product launches, production optimization such as adopting robots, and market diversification.
Kumho Tire held a "Cruzen GT Pro press briefing" at the Grand Hyatt Seoul in Yongsan-gu, Seoul, on the 17th. The Cruzen GT Pro is a premium, all-season tire exclusively for SUVs that Kumho Tire spent four years developing. A Kumho Tire official said, "It is being released in a total of 53 sizes from 18 inches to 22 inches, making it compatible with all premium SUV models, including domestic brands such as Hyundai Motor and Kia as well as Mercedes-Benz and BMW."
Korea's SUV market is growing rapidly. Based on new registrations, SUVs accounted for 48% of the overall market at 710,000 units in 2019, but sales rose to 1.01 million last year, expanding to 68%. A Kumho Tire official said, "In particular, the share of high-inch tires of 19 inches or larger, which was around 25% in 2019, expanded to 25% last year, showing that the high-inch premium tire market is growing rapidly." The continued increase in electric SUVs and imported SUVs is another reason premium SUV tires are needed.
To secure ride comfort and quietness suited to the Korean market, the Cruzen GT Pro rounded the tread blocks where they contact the road. This improved ride comfort by 5% over the previous product. By applying a noise canceller, noise was also reduced by up to 0.8 decibel (dB). Handling on dry roads and braking on wet roads were found to be 2% and 5% better, respectively, than competing products.
A Kumho Tire official explained, "Mileage (tire life) and rolling resistance were also 20% and 14% superior, respectively, compared with competing products." Kumho Tire emphasized that it is also suitable for electric vehicle users, as it offers durability that withstands rapid acceleration and high loads.
Kumho Tire has set a goal of selling 50,000 units of the Cruzen GT Pro per month. A Kumho Tire official said, "Considering distributor response, the internal goal of 50,000 per month even feels a bit conservative, as the market reaction is hot." After launching the Cruzen GT Pro in the North American market in September this year, Kumho Tire plans to expand sales to global markets.
◇ "The Middle East share isn't large... considering applying wearable robots"
On the day, Kumho Tire CEO Jeong Il-taek reaffirmed the goal, saying the company would "move toward the record-high target of 5.1 trillion won." Although U.S. tariffs that took effect last year have now been compounded by the recent U.S.-Iran war, the company said there is no problem achieving the sales target. Executive Vice President Lim Seung-jin, head of sales at Kumho Tire, said, "We have been responding to the tariffs since last year, and if costs rise (due to the war), they are linked to the selling price," adding, "Orders are already secured through the second quarter, and we are shifting to full-capacity operations."
The fact that reliance on the Middle East is not high is also a positive factor. Jeong said, "I understand that shippers are considering higher freight rates due to rising oil prices, but we have found solutions through consultations with counterparts despite countless variables so far," adding, "Because the Middle East market share is not large, this year's target is at a level that can be achieved even by activating a contingency plan."
Production volume is also set to increase rapidly. First, the Hampyeong plant began construction late last year. Mass production is expected to be established in the latter part of the fourth quarter of 2027. The site for the Poland plant has also been secured for its establishment. A Kumho Tire official said, "We are currently proceeding with design, and construction is scheduled to begin in the third quarter of this year," adding, "We expect to establish a mass production system in the third quarter of 2028."
The company will also actively respond to upgrading production by deploying robots. Jeong said, "Recently, robot technologies that can be deployed to new plants, such as Atlas and Optimus, are being introduced," adding, "At the point when mass production of (production) robots proceeds, or when beta testing is conducted, we will of course need to deploy robots to our production sites and determine how to divide roles between humans and robots in the most advantageous way." He added, "We are also conducting extensive reviews to expand the application of wearable robots."
The company will also accelerate its push into the Chinese market. In China, it is selling InnoV, a tire specialized for electric vehicles, but performance has been somewhat sluggish. A Kumho Tire official said, "Recently, Chinese companies, due to global tariff barriers, are turning to the domestic market, and within China, we cannot win on price," adding, "Since China is the next-largest market after Europe and North America, we will establish and operate a premium alternative brand strategy." The company also plans to gradually increase the share of InnoV.