Hankook Tire & Technology's (KRX:161390) profit and revenue for the second quarter grew due to greater demand for tires for electric vehicles.

Net income attributable to shareholders jumped 53% to 279.1 billion Korean won from 182.1 billion won a year earlier, according to the tire maker's earnings report published Tuesday.

Operating income climbed 58% to 559.1 billion won from 353.6 billion won in the previous year.

Sales rose 5.8% year on year to 5.682 trillion won from 5.370 trillion won due to more tires being sold.

Tire business revenue increased 12% year on year to 2.807 trillion won. The company said the volume of tire sales grew amid the expanding demand and production of electric vehicles, as the market gears away from diesel- and fuel-powered cars due to global oil price hikes triggered by the Middle East conflict.

Meanwhile, the thermal management systems business revenue grew slightly by 1% to 2.875 trillion won, driven by foreign-exchange benefits and increased supply to European clients. Europe has the highest regional performance among markets, rising 9% from a year earlier, with Mercedes-Benz posting the strongest customer performance among automobile brands, up 36% year-on-year.

As for the outlook, the company is targeting an increase of around 35% for its dividend payout ratio over the mid-term until 2027. The group also expects to target its year-on-year revenue growth through the expansion of its plants in Tennessee, U.S.A. and Hungary.