In 2026, the tire industry is experiencing the second round of price increases this year.
Many tire companies have announced a second round of price increases for their products starting now or in the near future.
The reasons given by merchants are highly consistent:The cost of raw materials continues to rise, especially the price of synthetic rubber, which is highly tied to crude oil prices, has risen sharply.
This is not the first round of price increases this year – as early as early 2026, many tire companies have already carried out a round of price increases.
The second round of price increases is coming faster and more violently than the industry expected.
Synthetic rubber is one of the most important raw materials in tire manufacturing, accounting for approximately 40%-50% of tire production costs.
The rise in crude oil prices has directly pushed up the price of synthetic rubber, thereby compressing the profit margins of tire companies.
The transmission chain of tire price increases: crude oil → chemical raw materials → tires → tire replacement
The first link: rising crude oil prices
The situation in the Strait of Hormuz continued to be tense. International oil prices rose again during the session on April 16, with Brent crude oil approaching the US$100/barrel mark.
Crude oil is the most upstream raw material for all chemical products. The increase in oil prices will be transmitted to all chemical products within 2-3 months.
Second Ring: Synthetic rubber prices rise
Styrene-butadiene rubber and butadiene rubber are the main raw materials for tires, and their prices are highly correlated with crude oil.
For every US$10/barrel increase in international oil prices, the production cost of synthetic rubber increases by approximately 5%-8%.
Third Ring: Prices of carbon black and other reinforcing materials are rising
Carbon black is a reinforcing material for tires, making them more wear-resistant and tear-resistant.
The production of carbon black also relies on chemical raw materials such as coal tar, and prices are also rising simultaneously.
Fourth Ring: Tire companies are forced to raise prices
The cost of raw materials has increased. If tire companies absorb it on their own, profit margins will be severely eroded.
Since 2026, the profit margin of the entire tire industry has been at a historically low level. If it continues to be suppressed, some companies will suffer losses.
The fifth ring: It will be more expensive for consumers to replace tires
Ultimately, consumers will feel the impact of this round of price increases when they replace tires.
Take an ordinary family car tire as an example. The current terminal selling price is about 300-500 yuan per tire. After this round of price increases, the increase is expected to be between 5% and 15%. Replacing four tires may cost an extra 60-300 yuan.
Why are tire companies so difficult this year?
Dilemma 1: The “scissors difference” between the selling prices of raw materials and products
Raw material prices rise → profits are compressed → forced to raise prices → customers are lost → price increases cannot fully cover costs. This “scissors difference” will continue to affect the profitability of tire companies.
Dilemma 2: Car sales are declining and the ancillary market is shrinking
In the first quarter of 2026, the cumulative retail sales of passenger cars nationwide fell by 17.4% year-on-year.
The shrinking supporting market means that tire companies have fewer new orders and can only stock up in the replacement market.
Dilemma 3: The export market faces trade frictions
European and American anti-dumping investigations and tariff barriers on Chinese tires have further compressed the export profits of Chinese tire companies.
What does it mean to ordinary people?
The cost of tire replacement has increased: Taking the replacement of four tires on an ordinary family car as an example, the cost after this round of price increases may be an additional 60-300 yuan.
If it’s an SUV or performance tires, the increase may be even greater.
Suggestion: If the tires have been worn to the critical point, “the longer you wait, the more expensive it will be” is a high probability event.
Indirect impact on auto insurance and logistics costs: Freight truck tires wear out quickly and must be replaced frequently. Rising tire costs will directly compress the profits of logistics companies.
Investment perspective: Can tire stocks still be of concern?
Short-term logic: Price increases are good
For tire manufacturers, terminal price increases mean increased revenue.
Leading companies that can successfully raise prices can pass on cost pressure to consumers and maintain profit margins.
Medium and long-term risks:
- Raw material prices fall, and the logic of price increases disappears
- Car sales continue to decline, and the supporting market shrinks
- Trade friction intensifies, and exports are blocked
Conclusion
The increase in tire prices may seem like a small thing, but behind it is the simplest economic principle: Crude oil is the blood of modern industry, and its price changes will eventually penetrate into every corner of our lives.
From gas prices at gas stations, to plastic products in supermarkets, to tires, to chemical fiber clothes – fluctuations in crude oil prices are affecting your spending bills in ways that you may or may not be aware of.
The only question is: How long will it take for it to be transmitted to you?
