In January 2013, Shangpu Consulting released a "2012-2016 China Rubber Tire Market Analysis and Investment Value Study Report", which pointed out that China's tire industry is fiercely competitive and that it has emerged as a stand-out for tire companies.
Shang Pu consulting machinery industry analyst pointed out that during the "Twelfth Five-Year Plan" period, China's tire industry has seven major trends.
First, with the promotion of China's energy-saving and environmental protection-related policies, the Chinese tire industry will strive to achieve the industrialization of “ green tires †by the end of 2015. Major tire companies will start with all aspects of raw materials, process technology and product standards to improve the energy conservation and environmental protection of tires;
Second, the tire industry will achieve green self-discipline. It is expected that in 2013, China's green tire industrialization plan and the green tire self-discipline standard will be introduced, which will eventually promote the formation of a tire "labeling method" in China, in line with international standards;
Third, winter tires will become the fastest growing segment in China;
Fourth, China's tire automation level is uneven, some tire companies have a high level of automation, and some companies still have low levels of automation. As a result, China's tire industry will move toward higher levels of automation, thereby increasing overall manufacturing levels;
Fifth, due to the serious overcapacity in the low-end products, the merger and reorganization of the tire industry is imminent;
Sixth, with the introduction of overseas trade protection policies, more and more Chinese tire companies have started to build tire factories in Southeast Asia and other places to bypass trade barriers. Southeast Asia is the largest rubber raw material production base, which is conducive to tire companies obtaining raw materials and reducing production costs. Therefore, Southeast Asia has gradually become the target area for the "strategic transfer" of Chinese tire companies.
Seventh, the tire industry will complete the transition from price war to brand warfare. Over the past years, the average size of Chinese tire companies is relatively small, and their competitiveness is not strong. In particular, there is still a large gap between production technology and technology and international standards. Therefore, the price war is a common marketing tool for Chinese tire companies. With tire companies slowly realizing the long-term lethality of price wars, many companies have begun to increase their own technological level and product quality, and embark on the road to building brand competitiveness.
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