Browse complete Research Report on Chinese Tire Industry, 2010-2011 Report

Browse all China Research and Intelligence Market Research Reports

The Asian market represented by China has gradually become the global tire manufacture center. Since 2004, both Chinese tire production and export volume have ranked the world Top. China has become the world leading tire production country. Owing to the financial crisis, the global tire industry suffered great losses. Especially, auto markets in Europe and USA have greatly shrunk. This severely cut down Chinese tire export volume and thus impacted Chinese tire industry. In 2009, USA declared to carry out three-year punitive tariffs on Chinese exported tires (tire special safeguard case), forcing Chinese tire enterprises to expand domestic and other emerging markets. According to investigations on Chinese tire enterprises by China Research and Intelligence, Chinese tire industry did not receive too much adverse effect from the tire special safeguard case. Many domestic tire enterprises began to focus on the domestic market and third-country export to partially counteract the unfavorable effects from the tire special safeguard case. Moreover, in 2009, encouraged by domestic demand stimulation policies (the purchase tax of passenger cars with the emission no more than 1.60 liters was halved by Chinese government in Jan. 20th-Dec. 31st of 2009), Chinese auto market saw prominent growth. In 2009, both Chinese auto production and sales volume exceeded 13 million, becoming the world largest auto production country and new vehicle market for the first time. Chinese domestic tire market is under rapid recovery, leaving vigorous demand.

Though China has become the global largest new vehicle market in 2009, the retain volume per capita is still quite low. In 2009, the vehicle retain volume per thousand people in China was less than 50, much lower than the 600-800 in developed countries and less than the half average retain volume in the world. It is forecast that Chinese auto market will maintain the annual growth rate of over 20% in the coming years. With the increase in Chinese vehicle retain volume, the annual growth rate of Chinese tire market will also exceed 20%. In Chinese auto tire market, the demand for replacement tires is about twice that for OEM tires, accounting for over 2/3 shares in Chinese tire market. China is expected to develop into the world largest tire market in the near future.

Since the 1990s, attracted by the low production cost, transnational tire enterprises begin to enter Chinese tire market. China has become the tire production base for many transnational tire enterprises. Large amount of global tire investments advances into China considering the gigantic demand and low cost. Instead of joint venture, foreign-funded tire enterprises prefer sole proprietorship and new projects in China at present. Foreign-funded enterprises have occupied over 50% shares in Chinese tire market. Particularly, they dominate the domestic high-end tire market, so the profit rate is usually folded (even more) that of domestic tire enterprises.

In China, transnational tire enterprises possess great advantages while most local tire enterprises are of small scale and weak strength. According to incomplete statistics of China Research and Intelligence, by the end of 2009, there were over 400 tire manufacturers in China. The M&A in Chinese tire industry is expected to be accelerated in the following 3-5 years, phasing out many small and medium enterprises. These eliminated enterprises will be acquired by competitive enterprises or go bankruptcy. There are many misunderstandings as well as development opportunities in Chinese tire industry, requiring tire enterprises to distinguish between them.

This report is accomplished by China Research and Intelligence by about four months. During the composition of “Research Report on Chinese Tire Industry, 2008-2009”, the global financial crisis had not placed too much influence on Chinese tire industry. However, during the composition of “Research Report on Chinese Tire Industry, 2009-2010”, Chinese tire industry fell into downturn. Fortunately, in 2010, promoted by the domestic demand, Chinese tire industry begins to restore. In 2009, Chinese tire export value was reduced by 4.7% YOY; in 2010Q1, Chinese tire export saw a certain growth. However, meanwhile, trade barriers on Chinese tire enterprises have also been raised. Some countries increase the tariffs while some others enhance the environmental-protection standards. With the complete tire upstream and downstream industry chain and cheap energy and labor cost, Chinese tire industry possesses more prominent advantages compared with other developing countries in recent years. It is forecast that Chinese tire export will also enjoy growth in the coming years.

ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.

Ms. Sunita

7557 Rambler road,

Suite 727, Dallas, TX 75231

Tel: +1-888-989-8004

Browse complete Research Report on Global Tire Industry, 2010-2011 Report

Browse all China Research and Intelligence Market Research Reports

In the Asian tire market, the overall situation is boosted powerfully by Chinese and Indian markets though Japanese tire market showed a downturn trend at the end of 2008.

In 2009, the auto sales volumes in Europe and USA declined compared with that in 2008. Nevertheless, with the growth of auto reserving volumes, the demand for replacement tires drives the growth of the whole tire market.

Under this background, tire manufacturers even begin to raise the price. The price has been increased firstly in Goodyear by 6% since December 1st, 2009. Subsequently, Bridgestone Americas, Continental North America and Yokohama Rubber increased their tire prices successively. Since January 1st, 2010, Bridgestone has raised the tire price by 5%. The price growth rate is about 5% for tires of Continental North America and 6% for all tires of Yokohama Rubber. Tire giants such as Kumho, Pirelli and Michelin also follow up.

In India, there is huge demand in the tire market, while the storage of tire manufacturers has decreased to the level equivalent to the total production of 20-25 days. Hence, the tire price in Indian market was raised by over 5% at the beginning of 2010. All tire companies owe the price increase to the unbearable price growth of raw materials. In November 2009, the heavy rain and flood severely affected the rubber production in Thailand, Indonesia, Malaysia and India. Consequently, rubber production from these major rubber producers suffers considerable decline. The vigorous demand boosts the price of rubber.

USA’s special tariff on Chinese passenger/light truck tires (tire special safeguard case) acts as another factor driving the price growth of tires. It affects China’s tire export to USA and creates the opportunity for world tire manufacturers to raise the price.

Tire price increase arouses a new round of tire investment craze in the world. After the outbreak of the financial crisis, tire giants (Michelin, etc.) almost stopped all the production expansion plans. At the beginning of 2010, they resumed the production expansion and construction of new projects. Michelin plans to invest USD 870 million to establish a heavy duty tire plant in South India in the coming 2-3 years and put the plant into production in 2012. Bridgestone plans to improve the production capacity of passenger/light truck tires in its Kheda plant to 15,000/day with the investment of USD 56.30 million. Pirelli has declared to invest another USD 100 million in Brazil and Latin America for the production of OTR (off-the-road) tires and agricultural tires. Toyo Tire & Rubber Co., Ltd has also announced that it will set up a new tire plant in Southeast Asia. Cooper will add USD 10 million to improve the automatic production level of its tire plants; meanwhile it declares to improve the production capacity of its plant in Texarkana and expand the production facilities in Arkansas and Mississippi of USA, Guadalajara of Mexico and the joint venture in Kunshan, China.

In terms of tire trade in the world, China has become the world largest tire export country since 2004. However, in recent years, Chinese tires have sustained anti-dumping investigations by USA, Venezuela, Australia, Brazil, Peru, Egypt, Argentina, Turkey, South Africa, Mexico and India, etc. Because of the complete tire industry chain, huge tire demand, advantages in energy and labor resources in China, transnational tire enterprises increase their investment in China successively. It is forecast that the global status of Chinese tire industry will be further raised and China will remain the global No.1 by tire export volume in the coming years.

ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.

Ms. Sunita

7557 Rambler road,

Suite 727, Dallas, TX 75231

Tel: +1-888-989-8004