China's Tire Industry Transforms 2026

Currently, China's tire industry stands at a critical historical juncture, with a profound transformation centered on high-end and green development unfolding across the entire sector.

Driven by the continued deepening of supply-side structural reforms and the dual-carbon goals, outdated production capacity is being rapidly eliminated, leading to a systemic reshaping of the industry landscape. Policy and market forces are working together to propel the industry from extensive scale expansion to a new stage of high-quality development centered on technological innovation and green intelligent manufacturing.

I. Precise Policy Implementation, Building "Hard Constraints" for Transformation and Upgrading

At the policy level, a comprehensive control system covering the entire chain from production to product has been established, drawing clear "red lines" for industrial upgrading.

Recently, Jiangsu Province, a major tire-producing province, issued the "Catalogue of Restricted and Eliminated Chemical Industry Structure Adjustment (2025 Edition)," which will officially take effect on January 24, 2026, setting the tone for development over the next five years. This policy explicitly includes bias-ply tires in the "restricted category," prohibiting the construction of new related projects.

Meanwhile, outdated processes and equipment such as "biased tires with a production capacity of 500,000 units/year or less" and "tire hand-carved vulcanization molds" have been listed as "elimination items" and are mandated to be phased out. This is not just an action in Jiangsu Province, but represents a nationwide industrial direction aimed at completely eliminating the survival space for low-end and outdated products and forcing companies to shift towards high-performance radial tires.

At the same time, the national-level institutional framework is also constantly being improved. In January 2026, the State Administration for Market Regulation and other departments revised and issued the "Green Product Certification and Labeling Management Measures," marking a new stage in my country's green product certification process, characterized by nationwide unification and full-chain supervision.

Tires, as one of the first products included in the catalog, now have authoritative and unified evaluation standards for their green performance, which will guide consumption and incentivize companies to engage in green innovation.

Furthermore, the Ministry of Industry and Information Technology and other departments have also provided strong support for the digital transformation and green development of the tire industry through a series of policies, including tax incentives and demonstration promotion.

II. Market and Demand Changes Define a "New Coordinate" for Industrial Development

Structural changes in market demand, resonating with policy guidance, have become the core endogenous driving force for industry transformation. The explosive growth of new energy vehicles has placed revolutionary demands on tire performance.

Due to their heavier weight and higher instantaneous torque output, new energy vehicles require tires with lower rolling resistance to improve range, stronger load-bearing capacity and wear resistance, and superior noise reduction. This has directly driven the upgrading of tire product structures towards high performance and specialization.

Faced with these new demands, domestic and international companies are actively shifting gears and accelerating their development. On the one hand, there has been a major reshuffling of production capacity, with resources concentrated in high-value areas. For example, Michelin converted the production capacity of its Shenyang plant from truck and bus tires to passenger car tires, and significantly increased its annual production capacity of quiet tires from 1.3 million to 5 million.

Sailun Group acquired Bridgestone's Shenyang plant, taking over its modern production capabilities. On the other hand, the technological competition has intensified. Domestic tire companies have significantly improved product lifespan and cost-effectiveness by developing high-wear-resistant rubber compounds, lightweight tire bodies, and tread designs that balance quietness and wear resistance, breaking the previous monopoly of foreign brands on high-end electric vehicle tires.

Leading companies like Zhongce and Linglong have also launched dedicated new energy vehicle product series and successfully entered the supply chains of several mainstream automakers.

III. Multi-dimensional Breakthroughs for Enterprises: Forging Future-Oriented Competitiveness

Under the dual pressures of policy and market forces, the logic of enterprise survival and development has changed; green practices and innovation have shifted from "optional" to "mandatory."

Leading companies are reshaping their production models by reducing costs and increasing efficiency through intelligent manufacturing. For example, Guizhou Tire, the industry's first "lighthouse factory," deployed an intelligent management platform based on the integration of industrial mechanisms and artificial intelligence in its Zazuo Industrial Park, achieving a breakthrough in improving the energy efficiency of public equipment by 12% and the operation and maintenance response efficiency by 70%. This is not only cost optimization but also a leap in management paradigm towards data-driven, predictive maintenance.

The green reshaping of the supply chain is equally crucial. Jiangsu Province's new policy not only targets finished tires but also restricts or eliminates the production of nylon cord, non-environmentally friendly recycled rubber, and various toxic and harmful rubber additives. This has forced tire companies to shift their procurement strategies from "cost-first" to "compliance-first and green-first," re-auditing and building a more transparent and sustainable green supply chain system.

Furthermore, globalization and branding have become key paths to breakthrough. Local governments such as Dongying City have introduced policies and allocated special funds to support companies in participating in international exhibitions, obtaining standard certifications, and developing cross-border e-commerce, helping them transform from "OEM manufacturing" to "brand globalization."

Sponsoring international sporting events and participating in professional motorsports to enhance brand image has also become a common choice for Chinese tire companies aiming for the mid-to-high-end market.