Since 2005, China’s tire production has reached 250 million

Since 2005, China’s tire production has reached 250 million, surpassing the United States’ 228 million, making it the world’s number one tire-producing country.

At present, China has been the world’s largest tire consumer, but also the largest tire producer and exporter.

The development of the domestic new car market and the increasing number of automobile ownership has provided the driving force for the development of the tire industry.

In recent years, the international status of China’s tire companies, also rising year by year.

In the 2020 Global Tire Top 75 Ranking organized by the U.S. Tire Business, there are 28 enterprises in mainland China and 5 enterprises in China and Taiwan on the list.

Among them, mainland China’s highest-ranked Zhongce Rubber, ranked 10th; followed by Linglong Tire, ranked 14th.

In 2020, affected by multiple factors such as the impact of the new crown epidemic, the trade war between China and the United States and the economic institutional adjustment, the tire industry is facing unprecedented severe challenges.

Good in natural rubber, synthetic rubber, skeleton materials and other major raw material prices are relatively stable and at a low level, the domestic export tax rebate rate increase, exchange rate changes in favor of exports, the tire industry itself to increase scientific and technological innovation, management innovation, relying on technological advances to empower productivity, and continue to boost the international competitiveness of independent brand tires.

Under the joint efforts of the whole industry, the crisis into an opportunity, the economic operation of a stable recovery, the main production and marketing objectives and tasks completed better than expected.

According to China Rubber Industry Association Tire Branch statistics and surveys, in 2020, 39 key tire member enterprises, to achieve total industrial output value of 186.571 billion yuan, an increase of 0.56%; to achieve sales revenue of 184.399 billion yuan, a decrease of 0.20%.

Comprehensive outer tire production of 485.85 million, an increase of 3.15%. Among them, radial tire production of 458.99 million, an increase of 2.94%; all-steel radial tire production of 115.53 million, an increase of 6.76%; radialization rate of 94.47%, a decrease of 0.20 percentage points.

Last year, the above enterprises to achieve export delivery value of 71.243 billion yuan, down 8.21%; export rate (value) of 38.63%, a decrease of 3.37 percentage points.

Export tire delivery of 225.83 million sets, a decrease of 6.37%; of which 217.86 million sets of radial tires exported, a decrease of 6.31%; export rate (volume) of 46.48%, a decrease of 4.73 percentage points.

According to statistics, 32 key enterprises, realized profits and taxes of 10.668 billion yuan, an increase of 38.74%; realized profits of 8.033 billion yuan, an increase of 59.07%; sales revenue margin of 5.43%, an increase of 1.99 percentage points. Finished goods inventory of 19.059 billion yuan, down 7.41%.
At present, China’s tire industry development trend mainly presents the following characteristics:

(1) Domestic tire industry development advantages remain.

Tire industry is a discrete traditional processing industry in the transformation and upgrading, capital-intensive, technology-intensive, labor-intensive and economies of scale features more obvious.

Compared with other countries and regions in the world, China’s domestic market space, is conducive to meet the economies of scale; upstream and downstream industry chain is complete, is conducive to cost control and progress; labor resources are of good quality and quantity; domestic political policy is stable, conducive to the development of enterprises and other key advantages and conditions.

(2) Increased concentration of the tire industry.

China’s tire companies are numerous, but the scale of production and sales of tire companies is generally small. As a manufacturing industry, the scale effect of the tire industry is very obvious, the small size of the enterprise leads to a lack of scale advantage.

According to statistics, the inclusion of statistical departments to monitor the tire factory, from the past more than 500 has fallen to about 230; through the CCC safety product certification of automobile tire factory, from more than 300 to 225.

In the future, with the further acceleration of integration, enterprise resources are expected to be more reasonable distribution, the ecology of the industry as a whole, but also towards a healthier mode of development.

(3) “Going out” development pace continues to accelerate.

In recent years, China’s tire companies “going out” to speed up the pace, a number of companies announced that overseas factories or new overseas factories, boosting the globalization layout.

Sailun Group Vietnam plant, Linglong Tire, CPU Rubber, Sen Kirin Tire, double money tires Thailand plant, Fulin Tire Malaysia plant, production capacity has shown double-digit release.

Guilun Vietnam plant, Jiangsu General and Poulin Chengshan Thailand plant, Linglong Tire Serbia plant are in full construction, Zhaoqing Junhong Malaysia Kuantan plant, also began groundbreaking.

(4) Stricter green requirements.
The impact of automobiles and tires on the environment, by more attention. For example, the EU requirements for automotive carbon dioxide emissions, the EU labeling law on the rolling resistance of tires, PEACH and other regulations for green production requirements, as well as tire recycling requirements.
These are to the upstream and downstream industry production, product design and raw materials, put forward higher technical development requirements.


Post time: Nov-08-2024
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