In 2005, China became the world’s first country in tyre production; two years later, it became the largest country in tyre exports. These two records continue to this day. Foreign media released 2024 global tyre 75 list, the number of Chinese tyre companies reached 34, there are two among the top ten.
However, on sales and individual enterprise market share, domestic enterprises and international giants compared with the gap. From the global competitive landscape, Chinese tyre companies are in a critical transition period from big to strong.
Recently, the automotive industry, a good news for people: China’s new energy vehicle production exceeded 10 million units for the first time, becoming the first country to reach this output. Rewrite the automotive brand competition pattern at the same time, the rise of domestic new energy vehicles also brings rare opportunities for China’s rubber tyre industry.
Why?
Industry insiders told reporters that in the first half of this year, China’s new energy vehicle market penetration rate of more than 30%, the proportion will continue to increase. Compared with fuel cars, new energy vehicles in weight, power output, torque, noise performance are very different, the rolling resistance of the tyre power, tire noise, wear resistance and other performance indicators have put forward new requirements. Superimposed on the domestic supply chain advantages, the rapid development of new energy vehicles to the domestic tyre industry, ‘lane change’ opportunity. At the same time, due to faster wear and tear, new energy vehicle tyre replacement frequency will also be increased, which means a larger consumer market.
In the past, the industry concentration is low, the degree of homogenisation and other problems plagued the development of the tyre industry. Today, the integration of high-quality resources, the policy is also guiding the clearance of backward production capacity, to enhance the tyre industry capacity concentration. In the second half of 2023, Shandong Province, a major province in the tyre industry, for example, issued the ‘high-end tyre casting project development guide catalogue (2023 edition)’, which requires strict control of the project, and resolutely stop low-end tyre projects. According to incomplete statistics, over the past four years, Shandong Province has eliminated at least 40 million tyre production capacity.
Slimming down, is to better lighten up. The clearance of backward production capacity will further release market space, standardise market operations, and form a long-term benefit to brand building.
Industry reports released by foreign media, the world’s fastest growing tyre brands, nearly half from China. China’s tyres show strong momentum and great potential, and the layout of globalisation is inextricably linked. 2012 to 2023, the domestic tyre industry’s overall revenue from overseas business from 25.96 billion yuan to 55.67 billion yuan.
Post time: Dec-02-2024