According to statistics of World Automobile Association, at the end of 2016, automobile reserve volume was 1.12 billion, and production volume in 2015 was 90.68 million, up by 3.63% YOY. Global automobile production volume has kept a compound growth rate of 3.5% since 1997.
In 2016, domestic automobile market also thrived in both productions and sales: annual sales volume of passenger vehicles was 24.38 million, hitting a record high, up by 16% YOY; sales volume of heavy truck even reached 32%, a historical high growth rate since 2011. At the end of 2016, automobile reserve volume will be 190 million with the growth rate of over 10% for many consecutive years. In 2016, domestic automobile sales market experienced strong growth, especially that the demands for heavy trucks significantly increased under the influence of infrastructure construction and policies. It is estimated that productions and sales in 2017 will keep growing; tires and tire moulds are expected to be benefit from and driven by downstream demands.
With decreasing negative export effects and thriving productions and sales of domestic automobiles, in 2016, domestic tire production and export are expected to increase slightly and reverse the downward trend. Tire production period lags behind that of tire sales. In 2017, demand environment is estimated to be friendly.
According to incomplete statistics by CRI, by the end of 2016, the number of tire manufacturers had been over 550 in China.
According to CRI, there were more than 500 tire manufacturing enterprises with an average annual output volume of less than 2 million by the end of 2015.
In 2017, China’s tire export will remain dim. This is mainly due to the slowing growth of the global economy and the increasing international trade barriers. For another, China’s is faced with heavy inflation pressure, bringing up the cost in the tire industry and consequently reducing the competitiveness of Chinese…