Nokian Tyres long-term growth strategy
Nokian Tyres aims to get back to EUR 2 billion growth track with strong profits. Focus continues to be on attractive niche segments, especially on premium winter tires, where Nokian Tyres can generate good margins.
Nokian Tyres’ long-term strategy centers on organic growth in the Nordic countries, North America and Central Europe. Expanding capacity together with market relevant high-quality products and enhancing commercial capabilities will boost topline growth. Margin improvement will be driven by increasing sales volume and average sales price.
The rebuilding of the company is driven by organic growth, with a strong portfolio of new products at its core.
With respect to passenger car tires, the company’s growth strategy is divided into two phases: investment phase and growth phase. In 2023, passenger car tire sales volumes decreased significantly due to the sale of the Russia operations. Therefore, rebuilding production capacity during the investment phase is integral to achieving the EUR 2 billion net sales target.
In 2023, Nokian Tyres continued its strategic investments to increase capacity at the factories in Finland and in the US, and began work on building a new passenger car tire factory in Romania. Commercial production will start at the new Romanian factory in 2025. To supplement own production, the first manufacturing partner products were introduced to the Central European market in the latter part of 2023. Manufacturing partners bring flexibility to meet the demand.
In the growth phase during the years 2026-2027, expanding capacity combined with the introduction of new top-performing products and enhanced operational capabilities will underpin the company's progress toward the financial targets.
In the Heavy Tyres business, sales is estimated to continue above market growth. Growth is driven by expanding capacity and strengthening distribution in Central Europe and North America. Widening product portfolio and enhanced digital capabilities support long-term growth. Vianor’s excellent distribution capabilities strengthen Nokian Tyres’ strong position in the Nordics.
Nokian Tyres’ competitive position is based on its ability to continually develop new, innovative and sustainably manufactured products. In 2023, Nokian Tyres invested ~2% of net sales in R&D, and launched several upgraded tires for passenger and SUV cars as well as for heavy tire machinery.
