With the rapid growth of domestic vehicle ownership, tires, as one of the most important supporting components, are also developing in full swing. It is understood that last year China's tire production was 280 million, and it is expected that the total demand for tires this year will exceed 300 million, an increase of more than 15%. However, from the perspective of the domestic automobile market tire matching pattern, foreign tire manufacturers account for 70% of the car market, and only 30% of independent brand companies. In contrast, in the field of commercial vehicle tires, the independent brand tire manufacturers accounted for 70% of the total, while foreign automobile manufacturers accounted for 30%. According to analysis by industry experts, the reason why self-owned brand tire manufacturers do not have a dominant position in the car matching market is due to their own brand awareness and production scale. Long-term cooperation is difficult to penetrate According to Tan Yukun, Secretary-General of the Rubber Branch of the Rubber Association of China, the reason why it is difficult for self-owned brand tires to enter the car matching market is closely related to the current car market pattern of independent brands. The cars produced by the joint venture currently dominate the market. Brands like Citroen, Volkswagen, and Nissan have decades of supporting procurement history in the international market. Tire companies that are working with them are also internationally renowned manufacturers. It is very difficult for companies to penetrate into this long-term cooperation. Moreover, the foreign partner of the car joint venture will also sign an agreement to take care of the local tire manufacturer at the beginning of the joint venture, so that the independent brand tire manufacturer will not have the opportunity to compete. Tan Yukun said: "There is a tacit understanding between foreign automakers and tire manufacturers. The visibility of self-owned brand tires is not enough. People simply cannot give you an opportunity." A person familiar with Michelin in China disclosed to the author that Dongfeng Yueda Kia had wanted to equip Celat with Michelin tires and conducted a track test. As a result, Michelin tires were 4 seconds faster than Kumho tires in a lap time. Even if there were significant differences, Kia still insisted on using Kumho tires from South Korea. The person said: “The protection of local tire dealers in Chinese and foreign car joint ventures is very serious and has long established a solid partnership. Even other international tire companies can hardly break this pattern, let alone on car tires. Inexperienced and under-branded Chinese tire manufacturers." Production scale restricts market development From the perspective of self-owned brand tire companies, the scale of production is also an internal reason that restricts their development in the car market. Most of the tires produced by self-owned brands are currently producing 2-3 million tires each year, while the production scale of large international tire companies is at least 10 million per year. Because of the long-term production of commercial vehicle tires, the self-owned brand enterprises have occupied most of the production capacity each year, and it is inevitable that they are struggling in the increasingly fierce field of car tires. Last year, Michelin and Goodyear launched the "along with you" and "nanny plan" for the car market, which are powerful measures to cope with fierce competition in the independent brand market. None of the self-owned brand tire companies followed suit. It can be seen that there are some limitations on the scale of production. In addition, industry experts said: “The number of bias tires produced by self-owned brand enterprises is still large every year. However, as the road conditions get better and vehicle performance improves, the demand for biased tires in the independent brand market is declining. How to transform this part of the production capacity? The production of radial tires suitable for passenger cars is also a problem for self-owned brand tire companies." Tan Yukun also told the author: "In recent years, the self-owned brand cars have made rapid progress in production and quality, which has brought development opportunities to self-owned brand tire companies. In 2007, Chery and Geely have already ranked among the top ten cars in China. , Brilliance, Hafei, and other independent brands are also very active in the sedan market. If self-owned brand tire companies seize this opportunity, improve technology, build brand, and expand scale, it is still possible to catch up with the advantage of foreign-funded enterprises in the passenger car market.†At present, self-owned brand tire companies also have certain advantages in labor costs. It is understood that the labor costs of the tire industry in foreign countries account for more than 15% of the total cost, while the labor cost in China does not exceed 5%. However, some experts pointed out that foreign tire companies have invested extensively in China to set up factories, making this kind of labor cost advantage of their own brands gradually lost. It can be seen that, in order to reverse the disadvantages in the passenger car tire market, the self-owned brand tire companies must increase the R&D and upgrading of the radial tire technology, expand their brand awareness, and expand production scale reasonably and effectively. [next] International tire giants launch siege However, the sieges from the international tire giants did not give their own brands the means to stay alive. With the finalization of the recent construction of the Chinese brand of tires, the world's top ten tire manufacturers landed in China. Like major auto makers who have aggressively seized the market in China, foreign tire giants have been in no hurry and have pointed to the first position. As of the end of 2006, there were 19 foreign-funded tire companies in China with 36 factories. In 2006, China's tire production reached 280 million, and sales reached more than 123.5 billion yuan. China has become the largest tire producer in the world, and China's tire production accounts for 18% of the world's total. By 2010, the total demand for tires in the Chinese market will reach 300 million. Foreign companies such as Bridgestone, Hankook, Kumho, and Giti have all stated that they will target the first place in the Chinese market, that is, more than 20%, which means that the four foreign brands want to share 80% of the Chinese market. At present, there are many difficulties in China's tire industry, such as rapidly expanding production capacity, disorderly industry competition, serious excess problems, and rising raw material prices. The biggest obstacle to China's tire exports is probably strict non-tariff barriers and anti-dumping issues. With the gradual liberalization of the domestic tire market, large multinational companies have entered the domestic market in large numbers by acquiring domestic companies. At present, there are only a dozen state-owned and state-controlled enterprises in the tire market in China. There are more than 20 foreign-funded and foreign-invested holding companies including more than 20 companies, including French Michelin, Bridgestone Japan, and Goodyear. Currently, the top 10 international brand tire manufacturers account for nearly half of the total domestic tire production. Multinational companies occupy an absolute dominant position in the passenger car market. In the country, multinational companies such as Michelin, Bridgestone and Goodyear have increased their investment in the tire industry in China. With their advantages in brand, technology and capital, they have entered China through direct investment in construction, acquisitions, and holdings. The tire industry has rapidly occupied the high-end tire consumer market with high profit margins such as passenger cars, light truck radial tires, and high-grade radial tires. Only Michelin’s market share has reached 20%, and a large number of tire companies in China can only enter trucks. Low-end tire consumer markets, such as agricultural vehicles, have a clear disadvantage in domestic competition. 2005 was the largest year for foreign investors to enter China. The leader is Bridgestone, which owns four tire factories in China, and Zhengxin/Majis International, which has three tire factories; followed by Michelin, Hankook and Jianda Rubber with two factories; Cooper and Pirelli each acquired a Chinese tire company with more than 50% shares; Kumho launched Tianjin Jinhu and Changchun Kumho projects while expanding Kumho in Nanjing; and Yokohama's first factory in China broke ground. . Recently, the United States GXP Corporation has acquired the Hebei Tire Factory. Of the top 10 tires in the world, only the Continental Continental Tire Company has not yet set up a factory in China. The company also announced in early 2006 that it will invest 300 million euros to build a tire factory in China and set up its Asia Pacific headquarters in Shanghai. [next] Local companies are in a weak position At present, there are about 300 tire manufacturing companies in China, but most of them are small factories (about 70%) whose annual production is below 500,000. The output of 50 large tire manufacturers accounted for 70% of China's total tire production. Foreign-funded enterprises mainly include Michelin, Bridgestone, Goodyear, Hankook, Kumho, Yokohama, Cooper, Sumitomo, and Giti. The main products are semi-steel radial tires and all-steel radial tires, and their production occupies the Chinese radial tires. More than 90% of them are domestic Chinese-funded enterprises mainly include Shanghai Tire, Delta Group, Shandong Chengshan, etc. The main products are bias tires, but the scale is generally not very large and the production equipment is relatively backward. At present, China's car tire production companies can be divided into three major squares, these companies often have a certain amount of weight in terms of other tires. At present, China is one of the very few countries that are still building new tire factories. At the same time, the efficiency of new factories in China is much higher than those of European and American factories that use old equipment. China's huge market demand, low labor costs, and affordable equipment have created a strong attraction for world tire investment. Therefore, it is expected that in the near future, China's tire production will exceed the United States. The development of foreign-funded enterprises in China is no longer based on joint ventures, but on sole proprietorship and the acquisition of new projects. According to the latest statistics, the average production capacity of China's tire manufacturing enterprises is only 400,000 articles/year, and there are only 15 large companies with production capacity of 1 million articles/year, and 3 articles with more than 3 million articles/year. The international tire industry has grown in the direction of large and extra large. The United States has 46 production enterprises with an average production capacity of 4.4 million pieces/year; Japan has 25 production enterprises with an average production capacity of 4.5 million pieces/year; Germany has 15 Domestic production enterprises, with an average production capacity of 3.1 million pieces/year. According to statistics, the output of 60 domestic fixed-point tire companies is still less than the output of a large foreign company. There are only 100 small tire enterprises in Shandong Province. These small companies are small in scale, poor in technology and equipment, and have low product quality. However, due to the support of local protectionism, their production costs and sales prices are low, seriously affecting normal operations. With the development of the tire market, domestic tire production capacity is still about 40%. China’s huge market is even more capable of spurring the desire of giants to invest. Foreign giants have just passed this year and made promises. In early June of this year, South Korea’s Kumho Asiana Group decided to add another radial tire production line to increase its original annual capacity of 7 million tires to 12 million to 13 million. At present, the second phase of capital increase construction has been completed from the originally scheduled completion of the end of 2009 to the end of June this year. In late June, Goodyear officially announced that it will invest US$500 million to expand its production base in Dalian. According to the plan, Goodyear's new commercial vehicle tire production line will be introduced into China and its passenger car tire production line will be expanded. On July 10, Pirelli said: "In the next two years, Pirelli will invest an additional 100 million U.S. dollars in China, and increase the production capacity of tires in China (including trucks and cars) to 11 million by 2011. We will double the capacity of car tires. It will also increase truck tire production capacity. If it can achieve 11 million annual production in China, China will become Pirelli's second largest global market." As the world tire industry gradually shifts to developing countries such as China, developing countries will highlight more advantages in tire manufacturing. From the 2007 list of the world's top 75 tires, the three world tire giants Bridgestone, Michelin and Goodyear are still in the first group; China's top 16 tires further advance, such as Hangzhou Zhongce in 2006 sales growth Nearly 50%, for the first time, exceeded 1 billion U.S. dollars, reaching 1.08 billion U.S. dollars, ranking from 23rd to 14th, and the rankings of other dozen companies also rose. In this way, the total revenue of the top 16 tires in China exceeded the number four German mainland company in 2006. However, in the face of a huge market, Chinese domestic tire companies are still in a weak position. The six major self-owned brand products recommended by the China Rubber Industry Association this year to the community include Wanli, Triangle, Delicatessen, Lucky, BCT, and Haida. The total production and market coverage only accounted for 25% of the country's total market share. Foreign brands divide up. It is still a long way for Chinese self-owned brand tires to show their skills in the car market. Tool Box,Tool Chest,Truck Tool Boxes,Tool Box Set WUQIANG HONGMA TOOLS MANUFACTURE CO., LTD , https://www.hmfarmjack.com
March 12, 2024