South Korea’s No. 2 tyre maker Kumho Tyre Co. said Tuesday it is aiming to increase its sales in China by 30 % this year and re-emerge as the top seller in the world’s largest auto market.
Kumho Tyre has been struggling with a sales slump in China in recent years following a massive recall four years ago. It was dethroned as the leader in the Chinese market due to the recall of 30,000 faulty tyres in 2011. Last year, Kumho Tyre’s sales in China amounted to some 450 billion won (US$415 million).
“We are targeting to sell 12 million units of our tyres in the Chinese market this year,” Kumho Tyre Vice President Cho Jae-suk told reporters at the Auto Shanghai 2015 motor show.
“After the recall, we’ve thoroughly checked our production facility and reviewed the market situation again … and the recall proved to be an opportunity for us to improve product quality,” Cho said.
Kumho Tyre’s operating profit to sales ratio in China came to 5.3 % last year, up from the 2.9 % tallied in 2013, the company said, adding it will rise “by a wide margin” this year. –Yon Hap News Agency