The global market is changing rapidly, and the automotive industry is accelerating its iterations. After the first outbreak between 2010 and 2015, Chinese automobiles have entered a high-growth cycle again since last year, in other words, the second round of outbreak of Chinese automobiles has arrived.
Therefore, a new round of automobile explosion will inevitably lead tires to another extraordinary development, especially in the context of the global tire consumer market facing multiple demands such as product diversification, intensive service cultivation, efficient and flexible channels, etc.. So from now on, what are the product R&D and market development trends in the passenger car tire market?
01 Domestic tire matching share increases
From January to March, domestic passenger car production and sales were 5.609 million and 5.687 million units respectively, with year-on-year growth rates of 6.6% and 10.7% respectively.
In particular, the market share of Chinese brand passenger cars has continued to increase. From January to March, sales reached 3.392 million units, a year-on-year growth rate of 26.4%, and the market share rose to 59.5%.
The achievement of this achievement not only highlights the rise of Chinese automobile brands, but also reflects consumers' recognition and trust in local brands.
China Tire has seized this market opportunity and continued to expand its original equipment market share, especially with the explosion of new energy vehicles. More tire manufacturers have developed and launched new energy vehicle tires.
In addition to looking forward to overtaking the new forces in supporting car manufacturing in corners, they also have to try to distribute goods in terminal stores to avoid being robbed of the future market and falling into passivity in the later period.
Of course, the segmented needs of new energy vehicle tires in terms of silent, wear resistance, fuel economy and other aspects will also force tire companies to invest in technology research and development to adapt to more fierce market competition in the future.
02 Large-size tires are becoming more and more popular
The explosion of new energy vehicles has also brought another profound impact to the tire industry, that is, the size of tires is getting larger and larger. The main reason is that large-sized tires are more in line with the fashion, design, and futuristic feel of new energy vehicles and are more beautiful.
Judging from the new cars released in the past two years, the original tires are generally over 18 inches, and 20 to 21 inches or even larger already commonplace.
Tires are moving into the era of larger sizes, which should be a good thing for the tire industry. Large size is more profitable, but its production and manufacturing process requirements are also relatively higher; so, this is both an opportunity and a challenge!
At present, large-size tires have become an important means of profitability for foreign tire companies such as Hankook, Pirelli, and Bridgestone, etc.. These companies also regard the growth of large-size sales as their strategic goals.
03 Demand for segmented tire products continues to grow
With the popularity of cars and the increase in the age of car owners, more and more car owners have put forward more diversified demands for tire products.
In recent years, products such as self-repairing tires, run-flat tires, and all-season tires and other products have gone through multiple rounds of market inspection and elimination in the early stage, not only did they not disappear, but more well-known brands have followed suit, which is also driven by the growing market demand.
Big foreign brands including Michelin, Continental, Hankook, etc. have launched self-repairing tire products and domestic companies such as Linglong and Maxxis are also deploying relevant production capacity. It is foreseeable that more brands will join this track in the future.
In addition, more segmented tire products focusing on quietness, comfort, fuel economy, etc. will continue to occupy more market shares to meet the diverse needs of the younger generation of car owners.
04 Digitalization leads to profound changes in new retail
In any industry, user needs never stop changing. The improvement in the quality of tire replacement and related services is becoming more and more important as the age of car owners and vehicle age change.
In the Internet era, tire sales and tire replacement services have put forward more refined requirements for terminal stores and even tire manufacturers to meet the consumer experience of worry-free tire purchase, assured tire replacement, and considerate after-sales service.
It is under the guidance of this demand that tire terminal stores are facing drastic changes. Standardization, specialization, and efficient operations have become an inevitable trend, and digital operations have become the only way to transform and upgrade factories from end to store.
In 2024, this transformation and upgrading is reflected in more terminals and manufacturers. Only by actively embracing digital change can the tire market remain invincible in future market competition.
05 Service concept runs through the whole industry
Since 2021, the concept of tire dealers transforming into service providers has been increasingly recognized and spread throughout the industry.
At present, several major manufacturers such as Zhongce’s forward sales car space model, Michelin RTM model, Sailun manufacturer integration, and Linglong new retail have been rapidly launched across the country, promoting the transformation of traditional dealers into service providers and also constantly subverting the distribution model that has been established in the domestic market for decades.
The emergence of these new models has made the circulation process of tire products more efficient, and also made more dealers think about whether the core competitiveness based on the market in the future is regional management and control capabilities or operational service capabilities.
In short, competition in products, channels, marketing, etc. in the tire market will become more intense in the future. Only by being prepared for danger in times of peace and seeking innovation and change can we remain invincible in the future.
DLFTECH is a professional equipment marketing & service company built by a senior R&D and marketing team in the tire & conveyor belt equipment industry. Benefiting from the rapid follow up of the international rubber industry's process re-engineering and the demand for industrial intelligence, DLFTECH, the best of the best, has rapidly developed into a new star in the international rubber machinery industry.
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