In the Middle East, Nexen plans to establish a subsidiary in Saudi Arabia. This will create a third base in the Middle East, after the Dubai branch was established in 2009 and the Egyptian subsidiary was launched in 2023.
Nexen Tire is taking steps to expand globally by establishing new branches and subsidiaries in key strategic markets, including Europe, Latin America, and the Middle East. The goal was to understand market trends and increase brand competitiveness in markets where tire demand has recently increased.
Nexen Tire announced it will set up a new branch in Bucharest, Romania’s capital, to meet the demand in Eastern Europe. Romania saw a rapid growth, with its gross domestic product (GDP) reaching a record high last year.
The new Bucharest branch aims to boost sales by expanding distribution across nine Eastern European countries, including Romania, Serbia, Bulgaria, and Kosovo.
In Latin America, the company will place its subsidiary in Mexico. This will shift the current system, where the US subsidiary managed Mexico, making Latin America an independent business area.
Mexico saw the highest vehicle registration last year, thus a growth in tire demand. The company aims to increase its brand presence in Latin America by increasing its marketing activities and sales in countries such as Honduras, Guatemala, Costa Rica, and El Salvador, utilizing its Mexican subsidiary as a foundation.
In the Middle East, Nexen plans to establish a subsidiary in Saudi Arabia. This will create a third base in the Middle East, after the Dubai branch was established in 2009 and the Egyptian subsidiary was launched in 2023. The tire market in the Middle East experienced rapid growth as more women started driving, income levels increased, road infrastructure improved, and cycles were replaced by cars due to the region’s hot weather. The Saudi subsidiary plans to establish a supply system covering Qatar, Bahrain, and Yemen, while expanding its sales network through regional partnerships with current customers.
As its international sales contributed 85% of its total, the company has been focusing on core markets such as Europe and the United States. After it expanded with its second factory in Žatec, Czech Republic, last year, the company has ensured it can produce to cater to both established and emerging markets.
Its representative mentioned that they are building a local operating system to address the distribution structure and customer demands in each area. They are trying to grow in the global market through localization-based distribution strategies.
As the South Korean tire manufacturer expanded, it earned a quarterly income of USD 605 million for the second quarter of 2025.
In the United States, its sales were showing signs of recovery during the second quarter after experiencing a temporary decline in the second half of 2024, helped by the expansion of new retail distribution channels. The Asia-Pacific region performed well. Australia and Japan are showing exceptional sales volumes as investments are made in their distribution networks.
Operational margins were impacted by an increase in raw material costs that began at the end of 2024, although the company’s ocean freight costs offered some relief.
It started supplying OEM tyres to 11 car models, including Hyundai NEXO, Kia EV4, and TASMAN, to collaborate with global manufacturers, including luxury car brands.
The company announced that it will slowly adjust its prices in the US market after US President Donald Trump announced global tariff changes. It will also focus on increasing its luxury product portfolio and reallocating its global supply volumes to mitigate profitability risks.
The company will closely keep an eye on trade developments and maintain a flexible response mechanism, as trade negotiations continue.