The latest battle of the three tire giants in 2024

1. Reconstruction of revenue map: Bridgestone regains the throne
In the competition of the global tire industry in fiscal 2024, Bridgestone achieved a key breakthrough with a total revenue of 4.4 trillion yen (211.6 billion yuan), 2% higher than Michelin's 207 billion yuan, and regained the top spot in the global tire company revenue list after many years. However, an in-depth analysis of the business structure shows that Michelin still maintains its leading position in the professional field with 159.3 billion yuan in pure tire business revenue (accounting for 77% of total revenue), Bridgestone's tire business contribution is approximately 140.754 billion yuan (accounting for 63%), and Goodyear ranks third with a total revenue of 137.4 billion yuan.

It is worth noting that the three giants are all facing growth pressure: Michelin and Goodyear's tire business declined by more than 5% year-on-year, and although Bridgestone maintained the same business scale, the non-tire business drag was obvious. The rise of cost-effective tires in Asia and the decline in global automobile production have led to a simultaneous decline in sales of the three major companies in the supporting and replacement markets, including Goodyear's total sales of 166.6 million (-3%), Michelin's -5.1%, and Bridgestone's loss of RMB 1.96 billion in profits due to declining sales.

2. Profit resilience competition: Michelin shows cost control advantages
In terms of profitability, Michelin continued to lead with a net profit of RMB 14.38 billion (profit margin of 6.95%), followed by Bridgestone's net profit of RMB 13.68 billion (profit margin of 6.46%), with a profit margin gap of only 0.49 percentage points. However, compared with 2023, Michelin's profit margin fell slightly by 0.06%, while Bridgestone's profit margin fell by 1% due to non-tire business.

Goodyear has achieved initial results through strategic restructuring. Although there is still a gap with the top two, it has successfully reversed the downward trend. Its transformation highlights include: completing the delivery of Yokohama's off-highway tire business, restarting Cooper Tire's brand upgrade plan, and obtaining incremental orders from multiple channels, laying the foundation for profit recovery in 2025.

3. Segmented market offensive and defensive battle
Passenger car tires: balancing scale and profit
Bridgestone surpassed Michelin's 111.666 billion yuan (-1.3%) with sales of 119.1 billion yuan (+5%), but the latter achieved profit overtaking with an operating profit margin of 13.1% (Bridgestone 11.4%). Michelin's 65% share of tires above 18 inches builds a product premium moat, and it has won more than 40% of the OEM matching rate at the three major international auto shows in China. It is expected that orders will be increased in the second half of 2025.

Commercial vehicle tires: From price war to value war
Although the contraction of China's truck tire market has forced foreign capital to adjust its strategy, Michelin achieved a 26.1% profit growth (RMB 4.548 billion) against the trend through high-end services, while Bridgestone maintained its scale advantage with sales of RMB 49.03 billion (+1%). Both companies chose to withdraw from low-end price competition and turn to high-profit fleet service solutions.

Off-road tires: Strategic trade-offs in the downturn
During the industry's downturn, Michelin's sales in this segment fell by 9.4%, while Bridgestone's sales fell slightly by 1% but its profits increased by 2%. Goodyear decisively divested the business and focused on core areas, reflecting the differentiated strategies of different companies in dealing with cycles.

4. Strategic Outlook for 2025: Path Selection in Differentiation
• Michelin: Cautiously optimistic, expecting growth driven by the recovery of replacement market demand, focusing on the layout of 18-inch + high-end product matrix
• Bridgestone: Expected revenue to drop slightly by 2%, but through product portfolio optimization to achieve a profit growth of 4% (target 24.2 billion yuan), operating profit margin aims at 11.7%
• Goodyear: Radical transformation, striving to return to the growth track through asset restructuring (completed asset divestiture of US$350 million) and channel expansion

Industry Observation: Under the industrial changes where the penetration rate of new energy vehicles has exceeded 35%, the three giants are accelerating the research and development of electric special tires, and Michelin has won orders for star models such as Tesla Cybertruck. At the same time, the application of sustainable materials has become a new battlefield. Bridgestone's bio-based butadiene technology and Michelin's 46% sustainable material tires are mass-produced, indicating that the next stage of competition will be upgraded.