Analysis of the tire industry in China

The world tire industry after more than 100 years of development, industry concentration has reached a high level. In the past 10 years, the 75 tire sales accounted for 97% of total global sales. 2000-2009, represented by Bridgestone, Michelin, Goodyear Tire "Big Three" in sales, accounting for more than 50% of the total global tire sales.

Pattern of the tire of the "Big Three" have been formed in the past 20 years, the status is stable. However, with the development of other tire companies grow, especially in breakthrough growth of the continent, Yokohama, Kumho and other "second tier" tire "Big Three" of sales accounted for rendering a declining trend.

The status of the domestic tire industry

In 2009, the State Council required by the auto industry revitalization plan to accelerate the restructuring and revitalization of the automobile industry, the implementation of an active consumer policy, stability and expansion of consumer demand for cars. And the introduction of the revitalization measures including the development of the automobile consumer market, promote the restructuring of the automotive industry, the support of independent innovation and transformation, the implementation of new energy car strategy ", including the automotive industry. In 2009, China's automobile production and sales reached 13.79 million and 13.64 million, an increase of 48.30% and 46.15%, respectively, compared to 2008, the world leader.

China's huge auto production capacity and market demand, the tire industry to produce a very attractive capital from various quarters. The attention of the majority of Chinese consumers tire far less attention to the automotive products, but this does not hinder the rapid development of the tire industry. In recent years, the world's top 10 tire giant have all set up factories in China, China has become the world tire factory.

At present, the domestic rubber tire companies can basically be divided into three categories, the first category is based Michelin, Bridgestone, Goodyear, Kumho, Hankook, Continental, Cooper, Pirelli, Toyo and Giti represented by established world tire giant tire manufacturer. This type of enterprises by size, market share and is divided into two factions, on the one hand is Michelin, Bridgestone, Goodyear representatives occupy the high-end market, the rest for the mid-market.

The second category is the gradual evolution of state-owned tire companies to the domestic backbone production enterprises, including Shanghai tire, Hangzhou Zhongce, Triangle Tire, Linglong tires, Chengshan Tire, Henan Fengshen, Guizhou Tyre, South China Tire, Double Star Tire, Yellow Sea tires is a new tire. In recent years, the sudden emergence of private enterprises, mainly in the area and the surrounding area of ​​Dongying, Shandong Province dozen tire companies, such as Xingyuan, Insein, Shengtai Jinyu, Prudential, Yongtai, Wanda, Yinbao.

Since 2011, by the development of China's automobile industry slow down, slow recovery in the international economy, as well as the impact of the raw materials, rising production costs and other factors, the slowdown in the economic growth of the rubber industry, the growth rate dropped significantly compared with the previous year. According to the Rubber Industry Association member companies key statistics, the growth rate of the industry's major economic indicators of the current prices of industrial output value, sales income and export delivery value, showing monthly steady slowdown trend, the industry overall economic operation smooth.

China's automotive industry in the 2011 production and sales growth fell sharply in 2012, has been restored. This will tire industry produces significant pull effect. In recent years, China's vehicle ownership to maintain a rapid growth rate throughout 2011 an increase of 17.73 million, as of the end of 2011, the national vehicle fleet of 225 million. Which car 106,000,000. The continued growth of the vehicle population, China's tire industry will provide a larger domestic market, promote the continued growth of the rubber industry.

Global tire companies in the top 75 rankings of 2006, China's mainland has 16 companies on the list, Triangle Group of Shandong Linglong Rubber Group, Qingdao Doublestar Tire, Chengshan Group 6 the list, accounting for 75 strong 8%. The Triangle Group column 14, ranking the first of the 16 companies in the country. 2010 top 75 global tire companies, Shandong has 10 companies on the list, accounting for 75 - 13%, accounting for the country (mainland) 22 75 - 45%. Domestic tire companies in the top 10, Shandong Province, accounting for 5. Therefore, the "Eleventh Five-Year" period, the tire industry in Shandong Province's status at home and abroad has been greatly improved.

Into the 2nd quarter of 2012, the domestic automobile market prices gradually pick up, the steady rise of production and marketing. January to June, China's total production of automotive 9,529,200, an increase of 4.08%; sales of 9,598,200, an increase of 2.93%. Demand-pull, tire market showed a relatively strong recovery trend. In January-June, tire tire production in Shandong Province cumulative 170,864,900, an increase of 22.94%, the growth rate of the previous quarter, an increase of 16.7 percentage points and 21.41 percentage points higher than the same period last year. Which radial tire tire production cumulative 66,407,500, an increase of 25.6% year-on-year, the growth rate of the previous quarter, an increase of 15.06 percentage points and 15.57 percentage points higher than the same period last year.

Since the international financial crisis, in the face of the U.S. "safeguard" tariffs, technology, environmental protection and other fields in other countries, trade restrictions, as well as to carry out anti-dumping investigations, Shandong tire enterprises to speed up the adjustment of product structure, under the joint efforts of all parties Shandong Province, tire exports for three consecutive years to achieve significant growth. From January to June, the tire manufacturing industry in Shandong Province, the export delivery value of 29.318 billion yuan, 3.78 percentage points higher than the growth rate of the last quarter, 2 percent higher than the same period last year.

Raw material prices fell sharply, the significant improvement in the efficiency of the sector. In the first half of 2012, natural rubber, synthetic rubber, and other bulk raw material prices began to reverse the rising trend into decline, and thus fell sharply. Reduced by the cost of raw materials directly affect the efficiency of the sector, showing signs of a marked improvement. January to June, Shandong Province, the rubber products industry realized a total profit of 10.464 billion yuan, an increase of 37.93 percent year-on-year, although the growth rate of the previous quarter, down by 9.73 percentage points, but still higher than the 2.53 percentage points over the same period last year.

From asset situation, from January to June 2012, China's tire manufacturing industry assets mainly in Shandong, Jiangsu, Zhejiang, Liaoning and Fujian provinces, total industry assets of the top five regions accounted for 74.52%. Shandong Province, the highest proportion of 44.92%.

From the sales situation, the sales order from highest to lowest in Shandong, Zhejiang, Jiangsu, Henan and Fujian Province. Total industry sales of the top five regions accounted for 80.82%, which accounted for 55.99% of Shandong Province. From growth, higher sales revenue growth of Shaanxi, Hebei, Guangxi and Yunnan, are more than 80%, Shandong Province, only 26.47%.

From the total profit, Shandong, Fujian, Jiangsu, Zhejiang and Henan provinces total contribution of 93.71% of the profits, which, Shandong Province contributed 65.61%; view from the growth rate of total profit, Shanxi, Jilin, Jiangsu, Shanghai and Anhui 150% higher than the growth rate of the region, Shandong Province, was 35.08%.

January to June 2012, the tire manufacturing industry enterprises of Shandong Province, the average assets of 5.41 billion yuan, ranked 9 in the country; industries and enterprises, the average sales revenue of 482 million yuan, ranked five in the country; an average profit of $ 0.33 billion , ranked fourth in the country. Overall, Shandong Province, the tire industry a single enterprise assets, sales, profitability, relative to the overall situation has a certain gap, but still has a good competitive ability.

Guangrao County, Shandong Province has become the country's largest friction materials R & D and manufacturing base, the country's major rubber radial tire production base and export base of rubber tires and auto parts export base. The data show that in 2011, Guangrao County only radial tire production capacity reached 110 million, accounting for about 1/4, 1/16 of the world. Among them, the the Xingyuan tire Jinyu Tire, Shengtai tire companies have entered the top 50 global tire.

National industrial policy

September 15, 2010, the Ministry of Industry and Information Technology issued the announcement of the tire industry policy, strict restrictions on the development of standards of product performance, structure and capacity, to encourage the development of energy saving and environmental protection, high-performance radial tire giant OTR wide section, flattening passenger radial tire, tubeless radial truck tire.

Tire companies access conditions, the new policy, new construction, renovation and expansion of truck radial tire project once a production capacity should reach an annual output of more than 1.2 million; light truck tire and passenger car radial tire project once formed the production capacity should reach an annual output 6,000,000 or more; hybrid truck, light truck, passenger car radial tire project, single variety production capacity also must meet the above requirements; engineering the fetal projects once a production capacity should reach an annual output of more than 30,000; addition to the relocation of existing enterprises before the end of 2011, the transformation is no longer new, expanded tire project.

The new policy shows the determination of the Government to protect and support the tire industry, the government will be more inclined to stimulate rising demand for tires, natural rubber prices. The new policy was first proposed to establish tires (including retreaded tires) recall system to guide and encourage construction services to the industry-wide tire performance testing center, the evaluation test site and engineering center, and vigorously promote energy conservation and comprehensive utilization of resources, guidance and encourage tire manufacturers to promote the integration of information technology and industrialization.

In addition, the new policy also provides for non-marketing smuggling tires failed tire, cutting the standard tires, change the standard tire, and no mandatory product certification logo laden tires and passenger tires, non-distribution of the "three guarantees" tires; establish sound management of waste tire recycling system, waste tire recycling business needed for the production the tire source should be based on the domestic to prevent disguised form of violation of imports waste tires.

The introduction of the new policy, marking the tire industry has entered a period of great change, industry structure, organizational structure, technical level, demand for raw materials and so needs to be changed, so as to promote the structural adjustment of the tire industry. Improve the access threshold and encourage mergers and acquisitions in order to improve the degree of concentration of the industry, for large enterprises more favorable, but also will eliminate part of backward production capacity and SMEs, the tire industry will face a "reshuffle".

China Rubber Industry "12th Five-Year Development Plan framework pointed out that the" 12th Five-Year "period, the rate of radial tire product development goals, including increased from 80% to 85%; industry access and industrial concentration objectives include: New passenger The radial tire of not less than 6 million / year, and the new truck radial tire is not less than 1.2 million / year moratorium on building bias tire production line. "Twelfth Five-Year" period, China's auto industry will continue to be in a stage of rapid development. Experts predict that by 2015, domestic automobile production will reach 25 million, the auto industry will continue to drive the continued growth of the tire manufacturing and marketing.

In response to inflationary pressures, the Chinese government began in November 2010 intensive control of monetary policy, after six consecutive mentioning quasi rate hike, China's inflation inflection point has already begun to appear, domestic monetary policy has begun to appear signs of loosening. In 2012, the trend of economic slowdown and the risk of the external environment, is expected to stop the continued tightening strategy and liquidity support moderate relaxation of certain enterprises. The policy adjustment will significantly improve the condition of the domestic market demand.

Xingyuan Group, the parent company of tire sales accounted for most of the Group's share of the parent company of steel tire with an annual output of 580 million sets / year capacity. Compared with the same industry, ranked Xingyuan tire in Dongying City TBR tire manufacturers; statistical data from the China Rubber Industry Association Tire Branch of view, the year 2011 Xingyuan Group sales revenue ranked eighth The total profit ranked fourth.

Steel truck radial tire market competition is more fierce, Shandong province Triangle Group (annual output of 300 million sets of steel tire), Double Star Tire (steel tire with an annual output of 500 million sets), Guangrao local Yongsheng Rubber (years production of 300 million units), steel tire Shengtai Group (annual output of 2.8 million sets of steel tire), Jinyu tire (steel tire with an annual output of 320 million sets).


Contact uS

  • Gaomi Anair Rubber Co., Ltd.
  • NO. 1738 Shuguang Road, Development Zone, Shandong Province Gaomi
  • Telephone: +86 536-2890297