On November 7, 2025, Shandong Linglong Tire Co., Ltd. issued two consecutive price adjustment notices, announcing that starting from December 1, the prices of all brands and some product series of PCR (passenger car tires) in the company’s domestic retail market will be increased by 2%-3%. At the same time, the prices of all brands and some product series of TBR (commercial vehicle tires) will also be increased by 2%-3%.
This is Linglong Tire’s third price adjustment after March and October this year. Nearly 60 tire companies, including Sailun Tire, Triangle Tire, Guizhou Tire, etc., have issued price increase letters intensively from September to November, forming an industry-wide wave of price increases.
Behind the price increase is the continued pressure on the cost side.
The price of natural rubber has increased by more than 55% since the first quarter of 2023, hitting a seven-year high of 17,855 yuan/ton in early 2025; the price of carbon black has increased by 600-800 yuan/ton over the same period, and the prices of auxiliary materials such as steel cords have also continued to rise.
Raw materials account for more than 70% of tire production costs, and cost pressure forces companies to increase prices to transfer pressure.
Taking 12R22.5 tires as an example, the cost of a single raw material has increased by about 55 yuan compared with before, making price increases an inevitable choice for companies to maintain profitability.
The logic of price increases shows a resonance between cost-push and demand-pull, causing industry prosperity to continue to rise.
From a cost-driven perspective, the prices of the four main raw materials, natural rubber, synthetic rubber, carbon black, and steel cord, have increased across the board.
Southeast Asia, the main natural rubber producing area, has reduced production due to climate impacts, and tight supply has pushed prices upward; carbon black giant Cabot announced in October that it would raise prices by RMB 600-800 per ton, further exacerbating cost pressures.
The raw material cost index for all-steel tires increased by 11.72% year-on-year, and tire manufacturing costs increased significantly.
In terms of demand, the market recovery exceeded expectations.
The “old-for-new” policy for domestic automobiles has driven demand recovery, and overseas markets have performed strongly.
In the first three quarters, China’s automobile tire export volume increased by 9.7% year-on-year, and the export value increased by 10.3%.
Linglong Tire’s sales volume increased by 11% year-on-year in the first three quarters, and Sailun Tire’s total sales volume increased by more than 30%, with product supply exceeding demand.
Against the backdrop of downgrading overseas consumption, China’s tires, which have outstanding cost-effectiveness advantages, are in strong demand and exports of semi-steel tires have performed well.
In terms of industry structure, the advantages of leading companies have become more prominent amid rising prices.
Leading companies such as Linglong Tire and Sailun Tire rely on economies of scale and channel advantages to more easily transmit cost pressure to downstream.
Small businesses are gradually withdrawing from the market due to high costs, industry concentration continues to increase, and the market share of leading companies has further expanded.
In the A-share market, four types of leaders share industry dividends.
Linglong Tire (601966), the absolute leader in the tire industry, is the industry benchmark. Its net profit in the first three quarters was 1.65-1.75 billion yuan, a year-on-year increase of 72%-82%. The price increase directly increased revenue; Sailun Tire (601058) has full capacity utilization, with a net profit of 3.21-3.28 billion yuan in the first three quarters, a year-on-year increase of 58.52% –
61.98%, sales volume hit a record high; Sentury Kirin (002984), a target of high performance growth, had a net profit of 1.73 billion yuan in the first three quarters, a year-on-year increase of 73.72%, and the production capacity of overseas bases was released; Triangle Tire (601163) has obvious advantages in all-steel tires, benefiting from the recovery in demand for commercial vehicles; it is the leader in the regional market
Guizhou Tire (000589) is the leader in the southwest region, with good performance expectations for the first three quarters; General Motors (601500)’s Cambodia base production capacity is 40% overloaded, and its order schedule is full; special tire company Qingdao Double Star (000599) has obvious advantages in the special tire segment and greater performance flexibility.
In terms of investment logic, the short-term price increase is realized and the price increase will be officially implemented on December 1. The fourth quarter performance is expected to exceed expectations.
The capacity utilization rates of companies such as Linglong Tire and Sailun Tire remain at a high level. Sentury’s Thailand base is operating at full production. Price increases directly increase gross profits.
Raw material prices fluctuate at high levels, and the effect of price increases will be fully reflected in the fourth quarter.
In the medium and long term, the pattern will be optimized, with the global car ownership growing steadily and the demand for tire replacement being rigid.
Those leading companies with technological advantages, brand effects and channel advantages are expected to continue to increase their market share.
Industry integration is accelerating, and leading companies will further expand their market share through mergers, acquisitions and reorganizations.
However, we also need to pay attention to risks such as raw material price fluctuations, exchange rate changes, and adjustments to overseas trade policies.
Global economic uncertainty may affect terminal demand, and the transmission effect of price increases needs to be continuously observed.
When Linglong Tire leads the industry’s third price increase, and when cost pressures resonate with demand recovery, leading tire companies with sufficient production capacity, smooth channels, and outstanding brand power are facing development opportunities as both volume and price rise.
With the official implementation of the price increase on December 1, the tire sector is expected to start a double-click market for performance and valuation.
