Since 2000, China’s automobile industry has been developing fast. From 2009 to 2016, China was the world’s largest automobile manufacturer and the largest sales market for 8 years. Meanwhile, China was also the world’s largest producer and exporter of tires. In 2016, the production volume in China reached 946.98 million, up by 2.36% YOY. With the increasing production volume and reserve volume of automobiles, the demand for tires is rising in China’s domestic market. Because of huge cost advantages of Chinese tires, since 2000, the export of tires also presented an upward trend in China. In 2016, the export of automobile tires in China was 468.48 million, up by 5.4% YOY. Due to increased export volume of Chinese tires, many Chinese tire enterprises are confronted with trade disputes such as anti-dumping investigation. However, in general, the export volume still presents a rising trend because of huge cost advantages.

China has established an integrated industry chain of tire. In China, except for natural rubber which mainly relies on import, other raw materials of tire such as synthetic rubber, steel cord and carbon black can be produced by a great number of manufacturers in China. Chinese enterprises are also strong in producing tire molds and manufacturing machines.

Attracted by low production cost and huge market demand of the tire industry in China, major multinational tire enterprises have entered the Chinese market and regard China as the key global production base. At present, over half of China tire market is occupied by foreign-funded enterprises. Besides, foreign-funded enterprises dominate the high-end market in China. The profit margin of them is twice or even more than twice that of Chinese enterprises.

According to incomplete statistics by CRI, by the end of 2016, the number of tire manufacturers had been over 550 in China. Most of the domestic tire enterprises are characterized by a small size and weak strength. With the development of the economy and the capital market in China, Chinese enterprises have started to make overseas acquisitions of tire enterprises.

Chinese automobile industry develops rapidly after joining WTO, which promotes the development of the automobile tire industry. In 2016, the production volume of automobiles was 28.119 million, up by 14.5% YOY. The sales volume was 28.028 million, up by 13.7% YOY. Meanwhile, the automobile reserves are also increasing. By the end of 2016, civil automobile reserves reached 194 million, a huge contrast against the number of 24 million in 2003. The increased production volume and reserve volume of automobiles in China stimulate the demand for automobile tires.

Although China has become the world’s largest automobile market for 6 years since 2008, car ownership per capita remains at a low level. In 2016, the automobile reserves were only 140 per thousand, far lower than the 600 to 800 per thousand in developed countries. It is estimated that in the next few years, China’s annual economic growth will remain at over 6%. The production and sales volume will grow at about 5% a year. Additionally, the market demand for tires will keep rising. In China, the demand for replacement tires in automobile after-market will take up a larger proportion in the tire market.

Due to integrated upstream and downstream industry chains and low environmental expenses, China’s tire industry possesses huge advantages compared to other developing countries, such as India. CRI has analyzed that in the next few years, the domestic demand and export of China’s tire industry will continue to rise. Currently, though China’s tire enterprises are faced with problems including higher environmental requirements, overcapacity and increasing labor cost, there is still much room for development. Chinese government’s support also indicates good prospects for the development of China’s tire industry.

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

– Overview of Global Tire Industry, 2012-2016

– Analysis on Development Environment of Tire Industry

– Analysis on Production and Demand in China Tire Industry, 2012- 2016

– Analysis on Major Raw Materials of China Tire Industry

-Competition Status of China Tire Industry

-Analysis of Major Foreign-funded and Domestic Tire Manufacturers in China

-Analysis on Import and Export of Tire in China

-Trade Barriers against Tires Exported from China

– Favorable and Unfavorable Factors in China Tire Industry, 2017-2021

-Forecast on Supply and Demand of China Tire Industry, 2017-2021

-Investment Opportunities in China Tire Industry

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

China’s tire export trade could be traced back to 1952 with species developing from truck tire, light truck tire and agricultural tire with bias structure into over 1600 varieties which come under five series of bias and radial truck tire, light truck tire, passenger car tire, industrial tire and agricultural tire. Export destinations have also expanded from Southeast Asia, Middle East and Africa to many developed countries and regions like North America and Europe. China has become the largest tire producer, exporter and consumer although one third of its tires are imported.
China boasts of a perfect industrial system of tire. Apart from natural rubber, the raw material which mainly relies on import, such additives as synthetic rubber, carbon black, zinc oxide all are in a large supply at home. Besides, local enterprises also have strong capability of making skeleton material like steel wire and such rubber machineries as internal mixer, calendar, molding machine and vulcanizing machine (mould).
In 2015, China exported 44.451 million tires with a year-on-year decreasing of 6.58% and brought in an export value of USD 13.846 billion with a year-on-year growth decreasing 15.81% year on year. Influenced by the continuous decline in the global price of natural rubber in recent years, costs of tire production have decreased too, leading to a decline in average unit price.
Chinese tires are exported to over 200 countries and regions, among which the US is the largest export market. In 2015, China exported 1.065 million tons of tires to the US with a year-on-year decreasing of 20.78% and brought in an export value of USD 2.783 billion with a year-on-year decreasing of 30.23%.
And the EU is the second largest tire export market.
Besides, the United Arab Emirates, Mexico, Russia, Saudi Arabia and Australia all constitute important export destinations of tire.
Passenger tires imported from China into the US are radial ones with a specification of 15-16 inches which are priced 20% below the average export price of tire. Among all imported passenger tires with various specifications in the US, those from China take up the largest share. Although the increasing export to the US prospers China’s tire export market, it is prone to the influence exerted by relevant trade policies. The special protectionist tariff before constitutes an important trade barrier measure imposed by the US on tire imports from China.
China’s tire export has grown fast since the turn of the century, which has incurred increasing trade barriers and thus posed severe threat to tire manufacturers and exporters. For one thing, the US and EU begin to set up stricter technical standards for imported tires. Besides, the fast growth in Chinese tire’s share in the global market has affected the benefits of some tire manufacturers. Other problems like unhealthy competition of cutting price among Chinese enterprises and unreasonable product and market structure of exported tires have made anti-dumping a serious issue facing tire exporters in China. Currently, China’s large-scale tire export has caused such sanctions as anti-dumping in many countries.
In 2016, the export of Chinese tires still seems hard due to slow growth in global economy and shrunk domestic demand. On one hand, as European and Japanese economies are on the brink of recession and emerging economies slow down their growth, the external market demand is limited; on the other hand, the competitive devaluation of foreign currencies has resulted in the passive appreciation of RMB and thus the decreased competitiveness of Chinese exports.
International trade frictions also exert great influence on China’s tire imports. For example, influenced by the US’s special protectionist tariff on passenger tires from China, the export dropped sharply to USD 968 million in 2011. And only when the tariff restriction was lifted three years later did China’s passenger tire export pick up. According to the statistics, in 2014, China’s export of passenger and light truck tires to the US brought in a value of USD 2.3 billion. There is concern in the field that the anti-dumping and countervailing investigation might cause chain reaction, i.e. the EU, Japan, India and Australia might follow suit.
With regard to domestic demand, as auto production and sales start to fall, the expectation of growth in tire market has decreased too. Besides, tire industry is troubled by cost rise due to the adjustments of compound rubber standards and natural rubber tariff. Therefore, it is inevitable for local tire manufacturers to adjust export structure, improve exports’ technological level and added value, create new comparative advantages and adopt effective measures to promote export.
On the whole, as China has great cost and industrial chain advantages, Chinese tire is expected to maintain its status in global market in near future and reports a continuous increase in export.

Readers can get at least the following information through this report:
-Chinese government’s policy supporting tire export
-China’s tire export
-major export destinations of Chinese tire
-trade barriers experienced by Chinese tire
-export forecast of Chinese tire

The author suggests the following groups of people purchase this report:
-tire manufacturers
-enterprises engaged in tire trade
-related enterprises in industrial chain of tire
-investors and research institutions interested in Chinese tire industry

Table of Contents
1 Overview of Tire Industry in China
1.1 Definition and Classification
1.1.1 Definition
1.1.2 Classification
1.2 Status of Tire Industry in China
1.2.1 Supply
1.2.2 Demand
1.3 Tire Industrial Chain in China
1.3.1 Tire Mould
1.3.2 Carbon Black
1.3.3 Natural and Synthetic Rubber
1.3.4 Steel Cord
1.3.5 Auto Industry

2 Tire Export in China, 2011-2015
2.1 Overall Situation of Export
2.1.1 Export Volume
2.1.2 Export Value
2.2 Structure of Exports
2.3 Major Export Destinations

3 Factors Affecting China’s Tire Export
3.1 Economic Environment
3.1.1 Global Economy
3.1.2 Chinese Economy
3.2 Policy Environment
3.2.1 Chinese Government’s Policy for Tire Export
3.2.2 International Trade Barrier
3.3 Export Driver
3.4 Export Obstacle

4 Major Export Destinations of Chinese Tire, 2011-2015
4.1 United States
4.1.1 Tire Production
4.1.2 Tire Consumption
4.1.3 Tire Import
4.1.4 Trade Barrier Imposed on Chinese Tire
4.2 Mexico
4.3 United Kingdom
4.4 Australia
4.5 UAE
4.6 Saudi Arabia
4.7 Canada
4.8 Germany
4.9 The Netherlands
4.10 Nigeria

5 Forecasts on Tire Export in China, 2016-2020
5.1 Factors Affecting Export
5.1.1 Favorable Factors
5.1.2 Unfavorable Factors
5.2 Export Forecast
5.3 Development Advice

Table of Charts
Chart Classification of Tire Products
Chart Tire Output in China, 2008-2015
Chart Market Size of Tire Industry in China, 2008-2015
Chart China’s Tire Export, 2009-2015
Chart China’s Radial Tire Export, 2009-2015
Chart International Trade Barriers Experienced by Chinese Tires, 2009-2015
Chart China’s Tire Export to the US, 2011-2015
Chart Export Value of Chinese Tire, 2011-2015
Chart TOP20 Export Destinations of Tire in China 2015
Chart Tire Sales in the US, 2011-2015
Chart Export Forecast of Chinese Tire, 2016-2020

The post Research Report on China Tire Export, 2011-2020 first appeared on CRI Report.