Chinese Tire Makers Expand Global Production
Amidst the globalization of China's manufacturing sector, the overseas capacity expansion of the tire industry has attracted particular attention. As one of the world's largest tire producers, Chinese tire companies, leveraging their complete industrial chain, mature production technologies, and large-scale manufacturing advantages, have, after nearly a decade of dedicated overseas factory construction, gradually built a transnational production network covering Southeast Asia, Europe, and the Americas.
This represents a shift from a primarily export-oriented trade model to a new phase of localized production and regional supply. Among them, Zhongce Rubber, Sailun Group, and Linglong Tire are particularly representative, with overseas production capacities exceeding 100 million units, making them significant forces in the globalization of China's tire industry.
These three companies have strategically positioned themselves according to local conditions, forming distinctive global production capacity footprints. Zhongce Rubber focuses on expanding its core market in Southeast Asia to consolidate its production capacity advantage.
In addition to its already operational production bases in Thailand and Indonesia, it further increased its Southeast Asian footprint in 2026, investing 1.04 billion yuan to launch the first phase of its tire production base in Vietnam. This further strengthens its regional production capacity base, leveraging the abundant natural rubber resources and convenient maritime transport to reduce raw material procurement and cross-border logistics costs, effectively radiating its influence to Southeast Asia and surrounding markets.
Sailun Group has adopted a multi-pronged strategy, with steady and extensive overseas expansion. By 2026, the company had established a Southeast Asian production matrix in Vietnam, Thailand, Cambodia, and Indonesia.
Its Indonesian factory achieved its first tire production line in 2025 and entered the capacity ramp-up phase, with products adapted to local climate and road conditions and meeting high-end EU standards. Simultaneously, its global expansion continues, with the Mexican factory already in operation and the Egyptian factory under construction, covering core markets in Southeast Asia, North America, and North Africa, and steadily increasing overseas production capacity.
Linglong Tire was among the first domestic tire companies to establish a production base in Europe, demonstrating strong foresight in its global expansion strategy. Its Thai production base is operating successfully and generating stable profits.
The Serbian base, a core location in Europe, saw steady capacity ramp-up at the end of 2025, with continued production line adjustments and upgrades in 2026 to precisely align with European market access standards and consumer demand. At the same time, the company is actively expanding into the South American market, planning to build a large-scale production base in Brazil to further improve its global production capacity system.
The large-scale overseas capacity expansion by leading companies is a crucial measure for the industry to overcome development constraints and seize global opportunities. In recent years, factors such as international trade barriers, tariff restrictions, and rising cross-border logistics costs have continuously impacted the export of domestic tire products. Overseas localized production can effectively mitigate trade risks and improve supply efficiency by being closer to the end market.
Meanwhile, the continued growth in car ownership in emerging markets such as Southeast Asia and Latin America has steadily increased tire replacement demand, providing ample market space for the release of overseas production capacity.
However, the path of Chinese tire companies going global still presents both opportunities and challenges. On the one hand, overseas markets face multiple uncertainties, including competition from local brands, geopolitical fluctuations, and adjustments in local industrial policies. Some overseas bases are still in the capacity development stage, facing significant short-term profit pressure.
On the other hand, domestic tire companies still need to overcome high-end technological barriers, enhance their overseas brand influence, and gradually change the stereotype of low-price, low-end products.
Overall, the globalization layout of these three companies has not only promoted the development model of overseas factory construction and localized production in the tire industry, but also, through continuous capacity investment and strategic optimization, is gradually reshaping the competitive landscape of the global tire industry, becoming a vivid microcosm of the high-end and globalized development of China's manufacturing industry.
