Six development trends in the tire industry in 2022
First, big brands force high value-added tires
Representative enterprises of this trend, including Michelin, Bridgestone, Continental, Pirelli and other international big brands.
Bridgestone's latest sustainability report points out that China is a key deployment area for its high-end strategy.
In order to rebuild the profitability of its core business, the company is strengthening the proportion of high value-added products in its tire business and steadily advancing sales of HRD tyres (large rim diameter tyres) for passenger cars.
Second, tire capacity integration and acceleration
Cutting back on non-profit capacity and operations and investing in new industries is something the tyre giants are all doing.
In recent years, Michelin, Bridgestone have closed a number of tire factories around the world. Closed factories, generally poor profitability.
At the same time, the giants are shedding unprofitable businesses.
But these moves are not meant to change the development of diversity.
At the same time, they are also interested in investing in emerging industries and cultivating new growth points of performance.
Third, a specific market or the birth of a new giant
In the future, in a specific segment of the tire market, new tire giants may be born.
The representative company of this trend is Yokohama Rubber (Yokohama).
In recent years, this Japanese tire manufacturer, frequently made efforts in the OTR tire market, successively acquired Aichi tire, India ATG tire.
More recently, it has been reported that they are also considering buying Trelleborg.
Doing bigger, stronger and better in a specific market may be a new direction.
Fourth, Share growth of leading domestic enterprises
International giants in China market adjustment, as well as domestic enterprises reshuffle, to the forefront of the tire enterprises, provide more development space and opportunities.
At present, domestic leading enterprises are actively expanding capacity to seize market share.
Representative enterprises include Zhongce, Linglong, Sailun, Triangle, Gm, Chengshan, etc.
In 2022, the market share of the above-mentioned enterprises will be further increased by taking advantage of the supporting and after-sales market.
Fifth, tire supporting market staged "Tian Ji horse racing"
In the passenger car tire matching field, "Tian Ji horse racing" trick has been staged.
Hankook tires support high-end sports cars such as Porsche, and actively work side by side with Pirelli, Michelin, etc.
Chinese tire enterprises, gradually supporting joint venture car enterprises, and the share is gradually expanding;
Chinese car enterprises in order to enhance the influence of car brand, deliberately choose Michelin, Horse brand and other big brand tires.
The logic behind this is twofold: one is cost performance, the other is brand influence.
Sixth, the tire industry "double cycle" new situation
Previously, China relied on export markets for more than 40 per cent of its tyres.
As trade barriers rise and factories abroad expand, overseas factories are grabbing -- or keeping -- market share.
Overseas factories have become a new engine of "external circulation" and are becoming the main force for Chinese enterprises to seize the international market.
At the same time, foreign - funded enterprises domestic market adjustment.
Some foreign brands used China as a manufacturing base to supply the global market.
Now they are gradually adjusting their capacity mix, with some companies redirecting orders made in China to factories elsewhere.
In addition, due to the export blocked, the "internal circulation" market serious volume, great competitive pressure, the profitability of tire enterprises declined.