Kenda Tire: Indonesia Market Heats Up, Vietnam Plant Supplies US EV Startup with Tires
Kenda Tire Chairman Yang Chi-jen stated at the shareholders' meeting that its Indonesian motorcycle tire plant is gaining recognition from local automakers, with market growth expected. The Vietnam plant supplies the US market and has partnered with a US electric vehicle startup to provide pickup truck tires, expected to launch this year. Last year was an operational trough, but the company is cautiously optimistic about this year.
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- 📰 Published: June 3, 2026 at 20:56
- 🔍 Collected: June 3, 2026 at 21:11 (15 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 16:27 (67h 16m after Collected)
(CNA reporter Pan Chih-yi, Taipei, 3rd) Kenda Tire Chairman Yang Chi-jen stated today that the company's Indonesian motorcycle tire plant is gradually gaining recognition from local automakers, with promising market development. The Vietnam plant supplies the US market, using light truck tires to open up the passenger car tire market. It has partnered with a US electric vehicle startup to provide pickup truck tires, which are expected to launch this year. The company is cautiously optimistic about its operations this year.
Kenda held its shareholders' meeting today. Chairman Yang pointed out that last year was an operational trough, with earnings per share (EPS) of NT$0.13. In the first quarter of this year, EPS has already reached NT$0.12, and the company was profitable in April. This year is expected to climb from last year's trough.
Chairman Yang explained that Kenda's automotive tires are the largest supplier of spare tires for Honda in the US. For light truck tires, because mainstream local tire manufacturers do not compete in this segment, automakers are willing to adopt Kenda tires, which are not a major international brand. After gaining visibility in the light truck tire market, it has also driven gradual growth in the passenger car tire market.
He said that tires for the US market are primarily produced at the Vietnam plant to comply with the non-red supply chain principle. However, after Chinese manufacturers faced US trade sanctions, they have been setting up plants in Southeast Asia and using low-price competition to enter the US market, so market changes must be monitored.
Regarding the bicycle tire market, Chairman Yang admitted that demand surged during the pandemic when social activities changed, leading bicycle manufacturers to continuously expand production lines. After the pandemic eased, market digestion slowed, and the recovery has not yet arrived. However, the bicycle tire replacement market has recovered, and capacity utilization has risen from a low of about 30% to nearly 40%.
Furthermore, bicycle tires accounted for about 45% of Kenda's revenue at their peak, but now only account for 18%. Automotive tires account for about 35%, motorcycle tires about 28%, and industrial tires (including rims) account for 19%.
Regarding the global oil surge triggered by the US-Iran conflict, Chairman Yang believes that the US-Iran war can now be considered over, with only mutual shouting and occasional drone harassment. Iran does not pose a threat to the US. He speculated that US President Trump is likely asserting US influence in the Middle East and will not let it drag on indefinitely.
He stated that oil affects carbon black prices, which naturally impacts the tire industry. The company had 1.5 to 2 months of raw material inventory in April and May, so the cost of goods sold for those months was not too high. However, in June, sales will involve high-cost raw materials, increasing the cost of goods sold, so product prices have been raised. (Editor: Chang Liang-chih) 1150603
Kenda held its shareholders' meeting today. Chairman Yang pointed out that last year was an operational trough, with earnings per share (EPS) of NT$0.13. In the first quarter of this year, EPS has already reached NT$0.12, and the company was profitable in April. This year is expected to climb from last year's trough.
Chairman Yang explained that Kenda's automotive tires are the largest supplier of spare tires for Honda in the US. For light truck tires, because mainstream local tire manufacturers do not compete in this segment, automakers are willing to adopt Kenda tires, which are not a major international brand. After gaining visibility in the light truck tire market, it has also driven gradual growth in the passenger car tire market.
He said that tires for the US market are primarily produced at the Vietnam plant to comply with the non-red supply chain principle. However, after Chinese manufacturers faced US trade sanctions, they have been setting up plants in Southeast Asia and using low-price competition to enter the US market, so market changes must be monitored.
Regarding the bicycle tire market, Chairman Yang admitted that demand surged during the pandemic when social activities changed, leading bicycle manufacturers to continuously expand production lines. After the pandemic eased, market digestion slowed, and the recovery has not yet arrived. However, the bicycle tire replacement market has recovered, and capacity utilization has risen from a low of about 30% to nearly 40%.
Furthermore, bicycle tires accounted for about 45% of Kenda's revenue at their peak, but now only account for 18%. Automotive tires account for about 35%, motorcycle tires about 28%, and industrial tires (including rims) account for 19%.
Regarding the global oil surge triggered by the US-Iran conflict, Chairman Yang believes that the US-Iran war can now be considered over, with only mutual shouting and occasional drone harassment. Iran does not pose a threat to the US. He speculated that US President Trump is likely asserting US influence in the Middle East and will not let it drag on indefinitely.
He stated that oil affects carbon black prices, which naturally impacts the tire industry. The company had 1.5 to 2 months of raw material inventory in April and May, so the cost of goods sold for those months was not too high. However, in June, sales will involve high-cost raw materials, increasing the cost of goods sold, so product prices have been raised. (Editor: Chang Liang-chih) 1150603