China’s output volume of tires broke through 280 million pieces and surpassed the U.S.A. to be the leading manufacturer and exporter in the world for the first time from 2006.However, it decreased by 17.33% YOY to 925.16 million compared to 2014 because of the economy slump in 2015.

The sales revenue of the tire industry continuously increased in China during these years. However, it experienced a decline with the decreasing output volume of tires in 2015. The total export value increased from USD 3.284 billion in 2005 to USD 13.846 billion in 2015 (tires for bicycles and motorcycles are not included) with the CAGR of 15.48%. The market share of radial tires accounted for over 80% in total export value, transferring from focusing on the export of bias tires to radial tires, which increased the added value of exported tire products. Due to the low average price, tires exported from China were confronted with many trade barriers including anti-dumping.

According to CRI, the production capacity of low and mid end tires is surplus because low barriers to entry and investment costs and lack of market information lead to universal blind investments. At present, the concentration rate of the tire industry is low, and small-scale enterprises are numerous. 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. According to CRI, the aggregate market share of top 5 tire manufacturers was less than 15%, which led to a fierce competition in 2015. Due to the high growth rate of the tire industry in China in recent years, all global leading manufacturers enter China. Most market shares of whole vehicle matching tires are occupied by foreign-owned enterprises.

Major raw materials of tires include natural rubber, synthetic rubber, steel cord material, carbon black and rubber adjuvant. The costs of raw materials accounted for about 70% of the total, which is a key factor influencing the production and operation of the tire industry.

In 2013, the State Council of China issued Guidance on Resolving the Overcapacity Problems, and provincial government of Shandong issued On the Implementation of Resolving the Overcapacity Problems (No. 41〔2013〕of the State Council), then the tire industry was included in industries with overcapacity in Shandong Province. According to CRI, the implementation of the fore-mentioned industry policies raise the barriers to entry in the industry to a certain extent. However, it needs a relatively long term to change the competition pattern of the tire industry in China.

The sales volume of automobiles was 24.598 million, increasing by 4.7% YOY in China in 2015. Meanwhile, the sales volume of passenger vehicles reached 21.1463 million, increasing by 7.3% YOY. The automobile industry enters a stage of stable development, which leads to a slump growth rate of the demand for tires. The large vehicle reserve determines the large demand for replacement tires in China. At the end of 2015, the private vehicle reserve volume reached 172.28 million and the number is still increasing. CRI analyses that the replacement tire market will be the major tire consumption subject in the future. China has many cost advantages due to the perfect industry chain of tire manufacturing. Therefore, tire products exported from China will still be competitive in the international market and export will remain one of the major driving forces in the tire manufacturing industry in China.

Through this report, the readers can acquire the following information:

-Definition and Classification of Tires

-Research Methods of the Report

-Development Environment of Tires in China

-Competition in Tire Market in China

-Top 5 Enterprises in Tire Market in China

-Major Development Opportunities and Driving Forces Faced by Tire Industry in China

-Risks and Challenges in the Development of Tire Industry in China

-Price Trend of Raw Materials of Tires in China

-Trend of Retail Prices of Tires in China

Table of Contents

1 Relevant Concepts of Tire Manufacturing Industry

1.1 Definition of Tires

1.2 Classification of Tires

1.3 Research Methods of the Report

1.3.1 Parameters and Assumptions

1.3.2 Data Sources

1.3.3 About CRI

2 Operation Status of Tire Manufacturing Industry in China, 2011-2015

2.1 Development Environment of Tire Industry in China

2.1.1 Economic Environment

2.1.2 Policy Environment Faced by Tire Industry in China

2.2 Analysis of Tires Supply in China

2.3 Analysis on Demand for Tires in China

2.4 Export of Tires in China

2.4.1 Export Overview

2.4.2 Major Export Destinations of Tires in China

3 Competition Status of Tire Manufacturing Industry in China, 2013-2015

3.1 Barriers to Entry in Tire Manufacturing Industry in China

3.1.1 Coerce Certification Barriers

3.1.2 Policy Barriers

3.1.3 Technical Barriers

3.1.4 Capital Barriers

3.1.5 Barriers of Customer Resources

3.2 Competition Structure of Tire Manufacturing Industry in China

3.2.1 Bargaining Ability of Raw Material Suppliers of Tires

3.2.2 Bargaining Ability of Tire Clients

3.2.3 Internal Competition of Tire Industry in China

3.2.4 Potential Entrants of Tire Industry in China

3.2.5 Substitutes of Tires

4 Top 5 Tire Manufacturers in China, 2013-2015

4.1 Zhongce Rubber Co., Ltd.

4.1.1 Enterprise Profile of Zhongce Rubber Co., Ltd.

4.1.2 Analysis on Tire Business of Zhongce Rubber Co., Ltd.

4.2 Triangle Tyre Co., Ltd.

4.2.1 Enterprise Profile of Triangle Tyre Co., Ltd.

4.2.2 Tire Business of Triangle Tyre Co., Ltd.

4.3 Giti Tire Investment Co., Ltd. (China)

4.3.1 Enterprise Profile of Giti Tire

4.3.2 Tire Business of Giti Tire

4.4 Shandong Linglong Rubber Co., Ltd.

4.4.1 Enterprise Profile of Shandong Linglong Rubber Co., Ltd.

4.4.2 Tire Business of Shandong Linglong Rubber Co., Ltd.

4.5 Xiamen Cheng Shin Rubber Ind. Co., Ltd.

4.5.1 Enterprise Profile of Xiamen Cheng Shin

4.5.2 Tire Business of Xiamen Cheng Shin

5 Analysis on Cost and Price in Tire Manufacturing Industry in China, 2013-2015

5.1 Analysis on Cost in Tire Manufacturing Industry in China, 2013-2015

5.2 Analysis on Sales Price of Tires in China, 2013-2015

6 Prediction on the Development of Tire Manufacturing Industry in China, 2016-2020

6.1 Factors Influencing the Development of Tire Industry in China

6.1.1 Forecast on Major Driving Forces and Market Opportunities in Tire Industry in China

6.1.2 Risks and Challenges in Tire Industry in China

6.2 Prediction on Supply in Tire Industry in China

6.3 Forecast on Demand in Tire Industry in China

Selected Charts

Chart Output Volume of Automobiles in China, 2011-2015

Chart Reserve of Civil Automobiles in China, 2011-2015

Chart Related Policies and Regulations in Tire Industry in China, 2011-2015

Chart Output Volume of Rubber Tires in China, 2011-2015

Chart Sales Revenue of Tire Manufacturing Products, 2011-2015

Chart Export Status of Tires in China, 2011-2015

Chart Major Export Destinations of Tires in China, 2015

Chart Major Tire Manufacturers and Their Market Share in China, 2013-2015

Chart Sales Revenue of Tires of Zhongce Rubber, 2013-2015

Chart Market Share of Tires of Zhongce Rubber in China, 2013-2015

Chart Sales Revenue of Triangle Tyre, 2013-2015

Chart Market Share of Tires of Triangle Tyre in China, 2013-2015

Chart Market Share of Tires of Giti in China, 2013-2015

Chart Market Share of Tires of Shandong Linglong, 2013-2015

Chart Market Share of Tires of Xiamen Cheng Shin in China, 2013-2015

Chart Price Trend of Imported No.3 Smoked Sheet Rubber in China, 2013-2015

Chart Price of Synthetic Rubber and Styrene Butadiene Rubber in China, 2013-2015

Chart Price Index of Dealers of Tires for Basic Passenger Vehicles (Limousine) in China, 2013-2015

Chart Price Index of Dealers of Tires for Trucks and Passenger Vehicles in China, 2013-2015

Chart Forecast on Output Volume of Tires in China, 2016-2020

Chart Forecast on Sales Revenue of Tire Manufacturing Industry in China, 2016-2020

The post Tire Industry Overview in China, 2011-2020 – Status Quo, Barriers, Top 5, Cost and Sales analysis first appeared on CRI Report.

China’s tire export dates back to 1952. In the early days, exported categories were mainly truck tires, light truck tires and agricultural tires with diagonal patterns. Now, there are over 1,000 varieties of 5 major series, namely, truck tires, light truck tires, sedan tires, engineering industrial tires and agricultural tires with diagonal and radial patterns. Export destinations have expanded from Southeast Asia, Middle East and Africa to developed countries and regions such as North America and Europe. China has become the world’s largest manufacturer, exporter and consumer of tires. However, up to 1/3 of its tires depend on import.

China has a complete tire industry mechanism. Except for natural rubber which mainly relies on import, other materials involved in the industry, including synthetic rubber and additives such as carbon black and zinc oxide can be produced by many manufacturers in China. Chinese manufacturers are also good at producing carcass materials such as steel wire, and rubber machinery such as mixer, calender, molding machine and vaulcanizer (mold).

In 2016, China’s tire export reached CNY 468.48 million, increasing by 5.4% YOY. Export value was USD 12.89 billion, decreasing by 6.9% YOY. Average unit export price was USD 27.52, decreasing by 11.65% YOY. Affected by the decreasing price of natural rubber on the international market in recent years, the manufacturing cost of tires has been declining, so the average unit export price of tire has been declining as well.

In 2016, tires from China were exported to more than 200 countries and regions with the U.S.A. being the largest market. The value of tires exported from China to the U.S.A. was USD 2,102 million, accounting for 16.3% of China’s total export value of tires in the same term.

The U.K. was the second largest market. In 2016, the value of tires exported from China to the U.K. was USD 541 million, accounting for 4.2% of China’s total export value of tires in the same term.

Mexico, Australia, the UAE and Germany were also important export destinations of tires from China.

Tires exported to the U.S.A. were mainly radial tires for passenger vehicles between 15 and 16 inches. China’s export price of tires of that size is 80% of the average export price, still lower than the prices of other countries. Tires imported from China ranked the first in terms of all sizes of imported tires for passenger vehicles in the U.S.A.

Since China joined the WTO, the rapid growth of tire export has resulted in more trade barriers, posing severe challenges to manufacturers and exporters in China. For one thing, the U.S. and European countries have set stricter technology standards for imported tires. Meanwhile, the increasing market share of tires exported from China harms the benefits of some tire manufacturers. A price war breaks out among Chinese tire exporters. The structures of exported tire products and the market are improper. These all lead to serious problems faced by Chinese tire exporters. China’s large scale of tire export has triggered several countries to undertake sanction measures such as anti-dumping.

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 exports.

China’s tire export is also affected by trade conflicts. Take tires for passenger vehicles as an example. In 2011, the value of tire export to the U.S.A. dropped sharply to USD 968 million due to the tariff imposed on Chinese tires. It takes three consecutive years for China’s tire export to the U.S.A. to quickly rebound.

In 2016, production and sales of automobiles grew rapidly and automobile reserves in China kept increasing, making Chinese tire enterprises to focus more on domestic market. They must adjust export structure, improve technology and increase added value of exported products. At the same time, they should create more comparative advantages and adopt more effective measures to encourage export.

Overall, China’s position in the global tire market is irreplaceable and will remain in the first place in the short run given its advantages in industry chain and costs.

Readers can obtain the following information or more through this report:

-Government Policies on Tire Export in China

-Export of Tires in China

-Major Export Destinations of Tires from China

-Trade Barriers against Tires Exported from China

-Forecast on Tire Export in China

Table of Contents

1 Overview of Tire Industry in China

1.1Definition and Classification

1.1.1 Definition

1.1.2 Classification

1.2 Status Quo of Tire Industry in China

1.2.1 Supply of Tire Industry in China

1.2.2 Demand of Tire Industry in China

1.3 Tire Industry Chain in China

1.3.1 Tire Mold

1.3.2 Carbon Black

1.3.3 Natural Rubber and Synthetic Rubber

1.3.4 Steel Cord

1.3.5 Automobile Industry

2 Export of Tires in China, 2011-2016

2.1 Overall Export of Tires from China

2.1.1 Export Volume

2.1.2 Export Value

2.2 Product Structure of Exported Tires from China, 2014-2016

2.3 Major Export Destinations of Tires from China, 2014-2016

2.3.1 Overview of Export Destinations

2.3.2 Export Segments

3 Factors Influencing Tire Export in China, 2017-2021

3.1 Favorable Factors of Tire Export

3.2 Unfavorable Factors of Tire Export

3.3 Forecast on International Trade Barriers

4 Major Export Markets of Tires from China, 2011-2016

4.1 The U.S.A.

4.1.1 Production of Tires

4.1.2 Consumption of Tires

4.1.3 Import of Tires

4.1.4 Trade Barriers against Tires from China

4.2 The U.K.

4.3 Mexico

4.4 Australia

4.5 The UAE

4.6 Saudi Arabia

4.7 Germany

4.8 Canada

4.9 The Netherlands

4.10 Italy

5 Prospect of Tire Export in China, 2017-2021

5.1 Factors Influencing Export

5.1.1 Favorable Factors

5.1.2 Unfavorable Factors

5.2 Forecast on Export Volume

5.3 Development Recommendations

Table of Charts

Chart Classification of Tire Products

Chart Production Volume of Tires in China, 2006-2016

Chart Market Size of China Tire Industry, 2006-2016

Chart Export Volume of Tires in China, 2006-2016

Chart Export Volume of Radial Tires in China, 2006-2016

Chart International Trade Barriers against Tire Export from China, 2006-2016

Chart Export of Tires from China to the U.S.A., 2011-2016

Chart Export Value of Tires in China, 2011-2016

Chart Top 20 Export Destinations of Tires from China, 2016

Chart Forecast on Export Volume of Tires in China, 2017-2021

The post Research Report on Tire Export in China, 2017-2021 first appeared on CRI Report.