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the status quo of China's tire industry

Nov 12, 2018

Before the reform and opening up, China was in accordance with the planned economy, and through reasonable layout, there were 60 tires in the country to produce designated enterprises. After the reform and opening up, the original planned economy gradually turned into a market economy, and the original single state-owned enterprise unified the world to gradually form a state-owned enterprise, a foreign-funded island, a file, a trade, a rank, and a situation. During this period, China's tire companies have grown from 60 to more than 300. In the meantime, there are more than 30 state-owned enterprises and more than 20 foreign-funded enterprises.


Because the repeated construction of China's tire industry is severe, the market competition is appropriate. Skewed car tires are now oversupply, the supply and demand of passenger cars and light trucks are basically balanced, and the all-steel radial tires are still over-supply. From the perspective of different tire companies, in terms of radial tires, especially in the car radial tires, foreign-funded enterprises have a significant advantage; while in all-steel radial tires, state-owned enterprises have a significant advantage; In terms of tires, especially in agricultural tires and micro tires, private enterprises have a greater advantage; in terms of engineering tires and large and medium-sized trucks, state-owned enterprises have a greater advantage. From the point of view of the economic benefits of the enterprise, because the country was exempted from the consumption tax on radial tires in 2001, the foreign-invested enterprises mainly producing radial tires have much better economic benefits, and they produce both the radial tires and the state-owned enterprise economy that produces bias tires. The benefits are still not good. Regarding state-owned tire companies, it is now in a dilemma. It is necessary to try to improve the level of the radial tires and the quality of the radial tires in the competition with foreign-funded enterprises. It is necessary to compete with private enterprises in the bias tires. Try to reduce production costs and improve market competition. (Analy analyze the real purpose of mainstream funds and find the best profit opportunities!)


2. Tire production value


According to calculations by relevant departments, in 2001, 173 units in the country produced more than 130 million tires. After deducting some motorcycle tires, the national tire output value is about 110 million.


However, from the accounting report of the tire branch, the output value of the biased tires of state-owned enterprises has been declining, indicating that the bias tires are being transferred to private enterprises. 2 radial tires continue to maintain high speed, especially all-steel radial truck tires. From the accounting report of the tire branch, the growth rate in the first four months of this year exceeded 50%, and the annual forecast is expected to reach more than 6 million.


3. Standard types


The development of China's roads, cars and transportation industry not only puts more demands on the demand for tires, but also puts forward higher requirements on the skills and standards of tires. In 2001, all kinds of tires produced by China's tire companies were able to satisfy the needs of China's car industry and transportation work in terms of quantity, quality and standard types.


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