Nexen Tire is increasing its share in the global automaker market by expanding supply of original equipment (OE) tires centered on high value-added products for sport utility vehicles (SUVs) and electric vehicles. By expanding OE supply and proving its technological competitiveness, Nexen Tire's growth is feeding into a virtuous cycle of higher replacement tire (RE) market share and rising sales.
According to the industry on the 25th, Nexen Tire this year will supply OE for the BMW iX3, KG Mobility's Musso and the Kia Seltos. Last year, it supplied products for Hyundai Motor's Palisade, the Kia Tasman and the Skoda Karoq. Hyundai Motor's China-focused electric SUV Elexio and the Kia EV5 are fitted with Nexen Tire's EV-dedicated tires.
Nexen Tire is increasing OE supply to expand RE. The aim is to improve results through a "lock-in effect," in which the tire performance experienced when a driver takes delivery of a new car leads to choosing the same brand at the next replacement cycle.
To that end, Nexen Tire last year launched the N'Fera Sport as an OE product for new cars from German brands such as BMW. In Australia, where pickup trucks and SUVs make up a high share, it unveiled the new on/off-road product Roadian ATX. In addition, it rolled out the high-efficiency model N'Blue S in Latin America and the Asia-Pacific region.
A Nexen Tire official said, "We have significantly strengthened our product portfolio," adding, "We are going beyond simple product supply to roll out targeted marketing tailored to each region's driving environment and preferred vehicle types."
The share of 18-inch and larger high-inch tires is also rising. On a consolidation basis, Nexen Tire's sales ratio for high-inch tires rose more than 30% last year compared with 2020. High-inch tires are more profitable than regular tires and are considered a key indicator for gauging the qualitative growth of corporations.
With SUVs expected to remain popular worldwide this year, the sales ratio of high-inch tires in the market is also forecast to increase.
Nexen Tire said, "We expect to maintain our management focus on high-inch tires," adding, "We have earned recognition for our product technology through partnerships with global automakers. We will strengthen our brand position by establishing a structure that carries over to the RE market."