Go global!China's tire exports soar

[Global Times special correspondent in Germany Aoki, Global Times reporter Qi Xijia and Wang Dong Global Times special correspondent have heavy responsibilities] As China's tire exports hit a record high, the status of Chinese companies in the international tire market is also steadily improving.Data recently released by the General Administration of Customs of China show that China’s cumulative tire export volume in the first half of this year reached 4.28 million tons, a year-on-year increase of 13.7%; the export value was 74.923 billion yuan, a year-on-year increase of 19.9%.According to the report, this impressive performance once again confirmed the important position of Chinese tires in the global market.The reporter learned from domestic and multinational tire companies in China that China's tire industry is in a favorable cycle under the combined influence of the continued release of market demand at home and abroad, the accelerated promotion of electric vehicles and the "One Belt, One Road" initiat

The market prospects are generally optimistic

Data shows that pneumatic rubber tires and automobile tires are the two main products of China's tire exports.Especially in June, the export volume of pneumatic rubber tires soared 23% year-on-year to 810,000 tons, while the export value reached 14.253 billion yuan, an increase of 22.7%.During the same period, 56.69 million new pneumatic rubber tires were exported, an increase of 16.7%.It is worth mentioning that as of the first half of 2023, China has exported a total of 300 million new pneumatic rubber tires, a year-on-year increase of 6.9%.In terms of automobile tires, export volume also showed substantial growth in June, reaching 691,000 tons, a year-on-year increase of 23.9%, and export value was 11.705 billion , an increase of 23.4%.

The performance forecasts of many Chinese tire companies in the first half of the year show that rising overseas market demand is one of the important factors for corporate profits.With the recovery of the domestic economy and strong demand from overseas markets, Chinese tire companies have seized the opportunity to expand their brand influence by optimizing product structure and market structure, and have successfully achieved significant growth in tire production and sales.

Lsales manager  recently told a reporter from the Global Times that sales this year have increased by 20%-30% compared with the same period last year.It seems that there are still a lot of orders at present, and the market is expected to be good in the future.From a specific market perspective, Africa and Central Asia performed most prominently.

Most of the world's tire production capacity is in China. In the past, due to the epidemic, tire exports were not smooth. Many orders in the first half of this year actually made up for the lack of orders last year.

Jin Shengyong, director of Qingdao Senqilin Tire, told the Global Times reporter that he predicts that tire export data will see a significant improvement in the first half of this year. “Chinese tires have been selling very well overseas in recent years, mainly because our products have The prices are lower than those of first-tier brands, and they are more cost-effective and also have good quality, so they are very competitive.”

Jin Shengyong also revealed that some of the negative factors that affected exports in the past have been eliminated, such as skyrocketing sea freight, long shipping cycles, and skyrocketing raw material prices.Now that raw material prices have stabilized and shipping is smooth, China's tire industry is currently in a procyclical state, so the entire industry is relatively optimistic about this year's sales prospects.

Chinese companies rise with strength~

Zhang Xiang, a visiting professor at the Yellow River Institute of Science and Technology, told the Global Times reporter that in recent years, emerging markets such as the Middle East have been a highlight of China's tire exports. "The demand for truck and bus tires in countries such as Iraq and Nigeria has increased significantly. China is a major player in tire exports," he said. A big country has long had relatively good competitiveness in these markets with its high-quality and low-price products. In the ten years since the 'Belt and Road' initiative was proposed, it has provided great help to China's tire exports to the Middle East. After the Russian-Ukrainian conflict broke out, some international The giant tire supplier has withdrawn from the Russian market, which also gives Chinese companies a better opportunity to enter the market.

Zhang Xiang also said that while Chinese tire companies continue to expand, the global market share of some international companies is declining.In 2003, the three international tire giants Michelin, Goodyear and Bridgestone accounted for more than 55% of the global market share. However, by 2022, the market share of these three companies has dropped to about 36%.During this period, the strength of Chinese enterprises has continued to increase. Among the top 75 in the world, Chinese tire companies account for 34, which fully proves the strength of China's tire industry.

Data provided by the US "Research and Market" website shows that the global tire market will be worth US$245.53 billion in 2022 and is expected to reach US$374.51 billion by 2028.Global demand for tires is increasing as car sales increase, demand for tire replacement increases and electric vehicles become more popular.

Mohammed Hamid, export manager of the UAE tire exporter "Global Tire Company" analyzed that the continued year-on-year growth of China's tire exports highlights the increasingly important position of Chinese companies in the global tire market.These figures also prove that the competitiveness and quality of Chinese tire manufacturers are enough to withstand the test and can meet the growing global tire demand.Continuous technological progress and improvements by Chinese tire manufacturers are creating increasingly high-quality and durable tires.

Behind the global export of tires made in China is not only the “result ”of the innovative development of China local brands, many international tire brands relying on China  industrial chain are also exporting their latest products from China amid the development of new energy vehicles in China. to overseas markets.

A Global Times; reporter learned from Bridgestone China that after its first new energy vehicle tires produced at its Wuxi factory in China were launched in China in 2021, while satisfying the Chinese market, they are also actively exporting to Asian markets such as Singapore. Next The next step will be to target Thailand, the “electric vehicle town” in Southeast Asia.

Become a “Main Player” in the Challenge

However, with the rise of Chinese tire companies, Chinese companies are also facing trade policy restrictions from some countries, such as trade remedy investigations and anti-dumping duties.The United Kingdom, the United States, the European Union and Mexico have recently launched anti-dumping investigations into Chinese tires.

Jubair Ahmed, commercial relations manager of the UAE tire exporter "Global Tire Company", wrote that as Chinese high-end tire manufacturers enter the global market, the market， perception of brand and quality is the main obstacle they face.

He believes that although China's high-end tire manufacturers have made significant progress in quality, the impression that Chinese companies mainly launched low-end products in the past still exists in consumers' minds.In terms of branding, Chinese companies also need to invest more time, energy and money to build a strong brand reputation, and it may be difficult to compete with well-known tire brands.

He also said that intellectual property rights are another major challenge faced by Chinese high-end tire manufacturers in the global market.However, through continued investment in R&D, quality control and branding, China's high-quality tire manufacturers are still expected to become a "major player" in the global tire industry in the future.