Hankook Tire picked as supplier for Tesla’s Model 3

Hankook Tire, the country’s largest tire maker, was recently chosen as a supplier for Model 3, the first mass market brand of U.S. luxury electric vehicle maker Tesla, according to local news reports.

The news reports said the EV-only tire of Hankook was picked based on the results of a recent performance test conducted by Tesla. 

The company, however, declined to comment on the deal, mentioning a confidentiality agreement with every client on a contract.

Despite the company’s response, shares of the Korean tire maker jumped 3.47 percent to 53,600 won ($48.43) as of 2 p.m. on the news of the supply deal with Tesla.

Hankook Tire has built a reputation in the EV tire market with its advanced technologies. It supplies its product to Hyundai Motor’s Ioniq EV and the hybrid version of Mercedes-Benz C-Class.

Industry watchers said the company’s incoming production line in U.S. was helpful to the firm in winning the deal from Tesla. Hankook is poised to start production in its tire manufacturing plant in Nashville, Tennessee, at the end of this year.

Korean tire makers have invested in green car-only tire products as a new growth engine. Kumho Tire, the nation’s second largest tire maker, also introduced its first EV-only tire Wattrun at the 2015 Frankfurt Motor show last year. The company is a supplier for Renault Samsung Z.E.

By Seo Jee-yeon (jyseo@heraldcorp.com)