In 2024, China's tire industry continues to be hot, and the annual output of rubber tires is expected to exceed one billion, which is closely related to the strong competitiveness of Chinese tires in the world.
Global tire industry landscape
The global tire market is a trillion-level track. From 1.483 billion tires in 2011, global tire production has reached nearly 2 billion in 2023.
The Asia-Pacific region is the main production base for tires. China's tire industry has maintained a positive trade surplus for many years, with tire exports accounting for about 60% of China's tire trade. In 2023, China's export volume reached 620 million tires.
As one of the major tire producer, China's output accounts for more than one-third of the global output. In 2023, China's tire output was about 988 million units, and the growth rate remained stable.
Since 2015, when the supply-side reform of China's domestic tire market began, small and medium-sized enterprises have gradually withdrawn from the tire market. As the domestic tire industry's production capacity is cleared, the tire companies that remain through the market's survival of the fittest will be able to benefit more fully from development.
Leading domestic companies such as ZC Rubber, Sailun Tire, Linglong Tire, and Sentury have gradually accelerated their global layout and built factories in Southeast Asia and Europe. With the continuous improvement of brand power in the Asia-Pacific region and the advancement of the strategy of building factories overseas, its low-cost advantage will be further highlighted, and it is expected to continue to increase its market share in the future.
Domestic tires continue to develop
Looking back at the development history of international tire companies, most of them developed along with the automobile industry in their respective countries. Japanese brand Bridgestone has grown with Japanese car companies, and its supporting equipment has a significant first-mover advantage. The same development model can also be seen in the rise of Hankook Tire in the local market in the 1960s and 1970s.
Domestic automobile brands have developed rapidly in recent years. In addition to the transformation towards mid-to-high-end products, the production and sales of domestically produced automobiles continued to grow, their market share was gradually increasing, and export volume reached a record high.
In 2023, Chinese-branded passenger cars sold a total of 14.596 million units, a year-on-year increase of 24.1%, accounting for 56% of the total passenger car sales. In terms of automobile export volume, from January to August 2024, China exported 3.773 million vehicles, a year-on-year increase of 28.3%.
China's new energy vehicle manufacturing capabilities and intelligence levels are at the first echelon level in the world; on the other hand, Chinese auto companies have generally begun to develop global businesses.
From January to August this year, China's cumulative tire exports increased by 13.3% year-on-year, and the export value increased by 10.3% year-on-year, with a clear growth momentum. China's tire industry is developing in a positive and healthy direction. Especially with the rise of China's automobile industry, the tire industry will surely usher in more development space and opportunities.
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