As China overtakes the United States to become the world’s largest automobile producer, and conforms to the law of the development of the industry chain, the development potential of the Chinese tire market is expected to be optimistic by the industry. Therefore, this year the Chinese tire market has maintained a trend of contrarian increase under a series of challenges such as the slowdown in the growth of automobile production and sales volume and the intensification of international competition. The annual increase in tire production has reached around 6%. Looking back on this year, " enclosure ", " transformation " and " energy saving " are the "key words" for the development of China's tire market. Shigekura China Staking Area Since the beginning of this year, the international auto market has further shrunk, and the international tire market has followed it up. China has become a contestable place for major tire giants. Bridgestone, Michelin and other international tire giants have increased their investment in China in various degrees and have announced the construction and expansion of tire projects and accelerated the network layout. Among them, Michelin has started contact with Huayi Group and Shuangqin Group and plans to establish a joint venture. US Goodyear invested $500 million in its Dalian plant to introduce a commercial vehicle tire production line. Hankook Tire broke ground in the third Chinese factory in Chongqing. By contrast, Gatton Tire, which has always been low-key, is a step ahead. The five major production bases have long been strategically located in China. At the same time, close cooperation with Chery, Geely, BYD, and other auto makers of their own brands has laid a solid foundation for China's auto market. The relevant data shows that at present, at least 3 of the 10 self-owned brands are originally equipped with Gyro tires. Not only that, but the new product development capability of GTI tires is also remarkable, and more and more companies are participating in the research and development of new car models. It can be said that adhering to the "China Customization" development route is the right choice for Giti Tire, which has won the market opportunities in terms of localization and support for independent brands. Looking ahead, with the Chinese auto market entering a steady development period, independent brands will face tremendous pressure. How to enhance brand value and technological strength is the direction of their efforts. Therefore, if the tire industry wants to effectively expand its market share in the future, it must always commit itself to the improvement of the quality system and the improvement of product research and development capabilities, and help the development of independent brands in China. Seek transformation to get rid of "glue" Rubber is one of the most important raw materials for tire production. It is also the most important cost for tire companies. According to statistics, at present natural rubber accounts for more than 50% of the total cost of tire raw materials, plus synthetic rubber will account for more than 70%. Since the beginning of this year, the rising prices of raw materials such as natural rubber on a global scale have brought severe challenges to the continued growth of the Chinese tire market, and have also caused the tire industry's profit margins to be squeezed. To get rid of the "rubber" predicament of profit, the conventional approach is nothing more than two: price increases or expansion of the market. However, pure price increases will inevitably cause a rational decline in sales, and the expansion of the market to maintain profitability also faces fierce competition. As a result, international tire companies such as Bridgestone, Michelin and Giti have all begun to seek transformation in this year. Looking at the transformation road of major brands, we can find two “road signs†that cannot be bypassed: product innovation and channel upgrade. Taking Jiatong Tire, which entered China in 1993 as an example, in order to seek transformation, it first made a more scientific breakdown of the market, and on this basis launched a new series of products to meet the diversified needs of various market segments. For example, the dedicated Jiatong GT867 for public transportation, Jiaan PAL517 for standard cargo transportation, Jiatong 280 designed for high-performance cars, and Githorn Four Seasons 820 for China's climate characteristics all achieved quite good market response. . In addition, in terms of sales channels, the construction of specialized retail systems such as the Litong Garage Service Station and the Card Passenger Bus Service Station has greatly narrowed the gap between Giti's services and end users, creating a professional and reliable brand image. Markets, brands, and channels will be combined to effectively build barriers to competition. Typhoon giants have set the basic direction for the future development of China's tire market. Market ahead of energy saving This year, energy-saving tire products became the main direction for major tire brands with rising oil prices and increasingly tight energy supplies. Experts said that the impact of tire rolling resistance on fuel consumption should not be underestimated. A professional quiz for tires shows that when a good truck is running at a speed of 80 km/h under good road conditions, rated load, and standard pressure, about 26% of the fuel consumption is used to overcome the tire's rolling resistance. In order to comply with energy-saving emission reduction and environmental protection trends, many tire brands such as Michelin, Bridgestone and Jiatong have made achievements in energy-saving products. Among them, Michelin has successively released a series of energy-saving tires for passenger cars and buses in the past two years. Currently, about one-quarter of the products currently listed on the Chinese market have been released. Bridgestone’s investment in the US$98 million “green song partner†energy saving and environmental protection tire project is well underway. Giti Tire also introduced a number of energy-saving and environmentally-friendly tires, and took the lead in the “Guangdong Green Freight Demonstration Projectâ€. While providing environmentally-friendly tire products, it also provided tire energy-saving technical support in order to help more than 500,000 freight companies in Guangdong Province improve. Energy efficiency, energy saving and emission reduction. As predicted by related industry experts, “the future tire market is in Chinaâ€, therefore, whether it is subject to the fluctuation of raw material prices or the market battle for big brothers, how to adapt to the development trend of the industry and do a good job in localizing the Chinese market Personalization and customization are the necessary elements for tire brands to be favored by Chinese car owners.
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