NEXEN TIRE recorded sales of about 12 billion won in Japan during the first quarter of this year, the highest quarterly sales since 2017. Although the absolute scale is small compared to North America and Europe, the gradually increasing sales in Japan, home to Bridgestone, a tire manufacturer vying for global first or second place, are seen as encouraging. NEXEN TIRE is also experiencing increased sales in Australia, another strategic market.
According to industry sources on the 13th, NEXEN TIRE's Japanese subsidiary achieved sales of approximately 12.3 billion won in the first quarter of this year. This figure is 38% higher than the same period last year (8.9 billion won). Since 2012, NEXEN TIRE has been supplying new tires (Original Equipment) to the Japanese automaker Mitsubishi. These tires are used in Mitsubishi's Sport Utility Vehicle Outlander, whose export volume has increased, resulting in greater sales for NEXEN TIRE.
The increase in sales in Japan also benefited from replacement tires. NEXEN TIRE has focused on securing a distribution network for replacement equipment by signing contracts with Japan's top used car dealer WeCars, vehicle maintenance companies, and tire distributors. NEXEN TIRE products are equipped as Original Equipment in the types of vehicles imported by Japan, and they have also expanded into replacement equipment. As sales of popular imported vehicles such as Porsche Panamera and Cayenne, and BMW X1 have increased in Japan, it has led to expanded sales for NEXEN TIRE.
Sales of NEXEN TIRE's Japanese subsidiary have been increasing yearly. In 2021, sales were 18.5 billion won, rising to 27.9 billion won in 2022, and recorded 36.1 billion won last year. NEXEN TIRE expects to achieve record sales in Japan this year. A NEXEN TIRE representative noted, "We assess this as a significant growth opportunity (in Japan) and will strategically approach new transactions and increased sales."
Australia is also a market strategically targeted by NEXEN TIRE. Australia ranks among the top globally for vehicle ownership density and per capita vehicle ownership, making it an important market in the automotive industry. NEXEN TIRE upgraded its Australian branch to a corporation in 2022 and increased its logistics warehouses to a total of two to boost local distribution. Given that Australia has a vast land area and rugged terrain, leading to high popularity of large vehicles like pickup trucks and SUVs, NEXEN TIRE has focused on the sale of high-inch tires.
NEXEN TIRE's Australian subsidiary sales increased from approximately 6.79 billion won in 2022 to 21.2 billion won last year. In the first quarter of this year, sales reached 6.7 billion won, an 81% increase compared to the same period last year. NEXEN TIRE aims to establish Australia as another global sales hub, enhancing its visibility by sponsoring both the men's and women's teams of the famous Australian soccer club Sydney FC.
Japan, Australia, and the Middle East account for about 20% of NEXEN TIRE's sales. With U.S. President Donald Trump imposing a 25% tariff on foreign automotive parts, the performance outside the U.S. has become increasingly important.