Tires are one of the most important components of a car, and their role cannot be underestimated.
It not only bears the weight of the car, ensures good adhesion between the wheels and the road, improves the car’s traction, braking and passability, but also works with the car suspension to alleviate the impact of the car when driving, ensuring the car has good ride comfort and smoothness, and plays an increasingly important role in improving car functions and driving experience.
However, in 2021, which is about to pass, tire companies are navigating through obstacles and facing many challenges.
On the one hand, the prices of major upstream raw materials continue to rise, and shipping prices have skyrocketed, which has led to a sharp increase in raw material and export costs.
From the perspective of the cost structure of tire production raw materials, it mainly includes rubber, additives, reinforcing fillers, fiber materials and steel cords.
Among them, rubber accounts for the largest proportion, accounting for about 50% of production costs, reinforcing fillers and chemical additives account for 18% and 15% respectively, fiber materials account for 7%, and steel cords account for 10%.
On the other hand, affected by factors such as “core shortage”, the downstream terminal supporting market is sluggish and demand is lukewarm.
Tire companies are being “attacked from above and below”, and their profit margins are being squeezed twice.
Tire companies that are moving forward in adversity are also actively seeking new breakthroughs.
Since December, due to high raw material prices, global tire companies have raised prices.
As the price of Price Tire in the United States has increased, leading domestic tire companies such as Fengshen Tire have also raised prices, which has increased cost pressure on downstream car companies.
From the perspective of tire industry sales revenue, from 2015 to 2020, the overall sales revenue of my country’s tire manufacturing industry showed a downward trend.
According to statistics, the sales revenue of my country’s tire manufacturing industry in 2020 was 373.9 billion yuan, a year-on-year decrease of 5%.
According to preliminary estimates of tire production and tire market prices, the sales revenue of the tire manufacturing industry in 2021 will be approximately 368.8 billion yuan.
In my country’s tire sales, foreign investment occupies a large domestic market share, with the passenger tire market share reaching 70%.
Since foreign brands entered the Chinese market, they have quickly occupied the domestic market with their capital and technological advantages.
While seizing market share, foreign brands continue to promote research and development and brand promotion in China, firmly consolidating their market influence and competitive position.
Currently, the major foreign-invested tire companies in China include Bridgestone (Japan), Michelin (France), Goodyear (USA), Continental (Germany), etc.
Judging from the ranking of domestic tire companies, Zhongce, Linglong and Sailun are firmly in the top three, with Sailun ranking among the top three for four consecutive years.
Among them, Zhongce Rubber’s tire business revenue in 2020 was 25.433 billion yuan, Linglong Tire’s tire business revenue in 2020 was 18.383 billion yuan, and Sailun Tire’s 2020 business revenue was 14.710 billion yuan.
my country’s tire companies are at the forefront of the world in terms of output, but their international competitiveness needs to be improved.
A few of my country’s tire companies are in the second echelon, and most are in the third and fourth echelons.
According to Quantuo Data Survey, there are 688,700 existing companies with the keyword “tire” in my country, and a total of 99,000 related companies in Shandong Province. Qingdao and Jinan rank among the top two cities in the country.
From the perspective of geographical distribution, China’s tires look at Shandong. Tires are Shandong Province’s traditional advantageous industries and occupy a pivotal position in the country. Its output and export volume have ranked first in the country for many years.
The number of registrations of tire-related companies has increased year by year over the past ten years, and the number of registrations in the first three quarters of this year increased by 40% year-on-year.
In addition, the proposal of the “dual carbon” indicator is a reshuffle for the domestic tire industry.
In the context of stringent carbon emission standards, we will accelerate the elimination of backward tire production capacity, continuously optimize industrial technology levels, promote energy conservation and technological progress, promote the development of green economy, and at the same time promote companies to improve product quality and strengthen brand value.
