Home > An insight into the Chinese tyre market

An insight into the Chinese tyre market

Supplier News
article image Chinese manufacturers produced 88 million tyres in 2012, or about 55% of global radial truck tyre production

The latest issue of the Bearcat Tyres newsletter, SOLIDEALER offers an insight into the Chinese tyre industry, which is going through a consolidation phase.

This phase is expected to last until global tyre demand and global tyre capacity become more balanced, according to a speaker at the recent Latin American & Caribbean Tyre Expo in Panama City. 

The Chinese tyre industry’s consolidation could result in some manufacturers, plants and brands disappearing, said Walt Weller, vice president of sales, China Manufacturers Alliance L.L.C.

While there is no clarity on whether foreign companies are going to come in and purchase Chinese manufacturers, or if Chinese manufacturers will purchase other Chinese manufacturers, he is sure there is going to be a consolidation, followed by a restructuring of the surviving companies.

The Chinese tyre market consumed about 58 million radial truck tyres in 2012, while Chinese manufacturers produced 88 million tyres, accounting for about 55 per cent of global radial truck tyre production, according to data generated by steel wire supplier Bekaert Corp.

China has an installed capacity of 120 million radial truck tyres per year, which nearly matches the global demand of 144 million units. By itself, China represents 80 per cent of the total global demand.

Given its elevated disposable incomes, low population density along with large land area, Australia maintains a high standard of living, resulting in the second highest level of car ownership in the world, with 565 cars per 1,000 people in 2012. The country has three times more roads when compared to Europe, and around seven times that of the whole of Asia; this road infrastructure indicates a large number of automobiles in the country, where the increasing travelling trend is maintaining high demand in the replacement market. The increasing car ownership level is further adding to the OEM sales of the industry.

Allied industries such as the mining sector are also indirectly supporting the growth of the tyre market in Australia. The OTR tyres used in mining vehicles are generating significant demand because of the increasing usage, as a result of the increasing mining activities in the country. As the mining industry shows brighter prospects in Australia, the global as well as domestic OTR tyre companies are set to expand their production in this segment.

Newsletter sign-up

The latest products and news delivered to your inbox