JAX Tyres of Australia Acquired by Hankook Tire

The South Korean tire manufacturer, Hankook Tire, to strengthen its position in the Australia by acquiring the renowned tire retail chain

Australia: JAX Tyres, Australia based retail chain, acquired by Hankook Tire. Under the acquisition deal, Hankook Tire took over the 100 per cent stake of the tire retail chain from the company’s chairman Fred Hurrell and other executives and would acquire its 83 retail outlets, mainly in Eastern Australia.

While finalizing the deal, Hankook Tire expressed its global strategy to strengthen its position in the B2C (Business to Consumer) distribution segment by following an enhanced franchise system to be adopted across entire Asian region. “We will solidify the position as the global top tier brand by extending the role of holding company,” added Seung Hwa Suh, Vice Chairman and Chief Executive Officer, Hankook Tire. He further commented, “We will concentrate more on enhancing global competitiveness by diversifying the inorganic business in the automotive sector based on organic growth of tyre.”

On the other hand, JAX Tyres is known to deal in various range of tires, i.e. premium, mid range and budget. JAX Tyres markets and distributes Hankook flagship brand tires along with Laufenn tire brand in Australia. Besides that, JAX Tyres is actively selling tires through online channel, as well.

As per TechSci Research, the acquisition of the renowned retail chain of Australia would assist Hankook to boost its position in Australia tire market in coming years. Other than that, the acquisition would give Hankook a competitive advantage over its competitors to cater  the growing demand of tires in Australia and strengthen its position further, in the country’s tire market.

According to a recent report published by TechSci Research, “Australia Tire Market Forecast & Opportunities, 2021’’, Australia tire market is projected to surpass US$3.9 billion by 2021, on account of increasing sales of vehicles, rising urbanization and rapid infrastructure developments. In 2015, passenger car tire segment dominated Australia tire market, followed by light commercial vehicle and medium & heavy commercial vehicle tire segments. Despite the decline in production of passenger cars in the country, passenger car tires are forecast to continue dominating Australia tire market during the forecast period, owing to huge passenger car fleet size. Bridgestone, Goodyear-Dunlop and Yokohama are few of the leading tire companies operating in Australia.