Kumho Tyre Posts 23% Q3 Operating Profit Drop Amid Cost Pressure
Kumho Tyre reported a sharp decline, a nearly 23% fall in its operating profit for the third quarter of 2025, as higher raw-material costs and weak demand weighed on its performance. Chosunbiz
The South Korean tyre maker faced a challenging environment, with margin pressure coming from increased exposure to rubber and carbon-black price inflation, as well as slowing end-market demand in both domestic and export channels. According to the report, despite stable overall sales volumes, profitability was eroded by rising input costs and relatively flat pricing power in a competitive market.
Kumho’s board signalled that it would focus on operational efficiency and product mix improvement, targeting premium segments where pricing is less volatile. The company also highlighted efforts to push into high-value tyres and develop materials innovations that could shield margins from the raw-material swings. While demand in heavy-duty and specialty tyres has held up better, the mass passenger-tyre side continues to face headwinds from slow fleet replacement cycles and economic softness.
Analysts note that Kumho’s profit drop underlines a broader challenge for tyre makers globally: balancing rising input costs against static or even competitive pricing, while investing in higher-margin technology and expanding in premium and export markets. For the Indian tyre market, which depends partly on imported inputs and global cost trends, Kumho’s experience offers a timely cautionary tale.
Editor’s View
The profit slump at Kumho Tyre signals that even established tyre companies are not immune to persistent cost and demand pressures. For the tyre industry, this underscores the importance of pursuing value more than volume. Suppliers and manufacturers alike must focus on material innovation, premium product mixes, and cost-led strategies.
In India, where raw-material import exposure and global linkage are high, the message is clear: you can’t simply rely on volume growth; cost control and technological differentiation will be key to maintaining margins.
