The more difficulties we face, the more courageous Chinese tires are
The United States has increased tariffs again, 245%. The price of Chinese tires exported to the United States has doubled - the price of a tire exported to the United States is 3,000 yuan. In 15 days, it has risen from the most cost-effective tire to the most expensive tire.
Chinese tire companies are "unconvinced"
"At 145%, Chinese tires have already lost their cost-effectiveness. When it rises to 245%, it is almost the same as 145%. "Throughout April, the global tire market was left with only the wry smiles of Chinese tire companies.
"Tariffs are a hurdle that Chinese tire companies cannot overcome. From 2008 to 2025, for 17 years, tariffs have always been the biggest headache for Chinese tire companies." It is true that when the price of raw materials rises, Chinese tire companies are very troubled.
But as long as the market demand is there, Chinese tire companies can still resolve the crisis by raising prices. Just like from 2023 to 2024, although the price of natural rubber gradually exceeded 19,000 yuan per ton, for tire companies, sales are still there, and a 3% price increase can still make some money. But the tariff stick hit, and it rose to 245% in 15 days! For most Chinese tire companies, there is really nothing they can do! Why most tire companies? Because at least China's leading tire companies and listed tire companies can still alleviate the impact of tariffs through overseas production capacity. At least in the next two months, the tariff in Southeast Asia has fallen back to 10%, and the price of tires exported from here to the United States will at least remain competitive.
Although the United States may restore tariffs on Thailand, Vietnam, Cambodia, Indonesia, Malaysia and Serbia to 36%, 46%, 49%, 32%, 26% and 37% respectively (Morocco is still 10%) in two months, at least in the 90-day window period, Chinese tire companies can still grab orders through overseas factories. And overseas factories are the response strategy that Chinese tire companies came up with after they were "unconvinced" by tariffs.
Stubborn Chinese tire companies
Rising overseas production capacity supply
In 2012, Sailun pried the first shovel of soil in Vietnam. Since then, overseas factories of Chinese tire companies have sprung up in Southeast Asia. As of April 2025, there are 22 overseas factories of Chinese tire companies. With the supply capacity of overseas factories, Chinese tire companies continue to fight for market share with foreign companies in overseas markets. In the US truck tire replacement market, the market share of Double Coin brand reached 5.5% - the first Chinese brand and the seventh global brand! Senqilin's Delinte and Luhang brands have reached 3%, 3% and 2% in the US passenger car tire replacement market. Sailun brand under Sailun Group has performed well in the US light truck tire replacement market, with a market share of 2%.
By 2026, China's overseas tire production capacity is expected to exceed 250 million (210 million semi-steel tires and 43 million full-steel tires), and stronger production capacity supply is expected to help Chinese brands seize more market share. Unfortunately, only Chinese tire companies with overseas layouts will benefit. Although many tire companies that only have factories in China are also dissatisfied, they have no choice but to hold back in the face of the tariff stick. However, as time goes by, the tariff crisis of Chinese tire companies will only continue to intensify-in 2024, the UK will discuss a 1,000 yuan tax increase for each Chinese tire, and the EU's sunset review of Chinese tires will continue to increase tariffs.
When the European and American tire markets (also the two largest tire markets in the world) are ruthlessly "adding" tariffs on Chinese tires, Chinese tire companies that cannot export in a corner can only be helpless-they are paralyzed on the beach by the tariff waves. However, the stubbornness of China's leading tire companies is not only aimed at tariffs, but also against the brand influence that has been belittled.
Stubborn Chinese tire brands
Rising market praise
20 years ago, the evaluation of Chinese tires facing the "price advantage" was basically recognized; but starting from 2021, when hearing that the outside world's evaluation of Chinese tires still remained at "price advantage", Chinese tire companies were obviously dissatisfied!
At the three major international auto shows in Beijing, Chengdu and Guangzhou in 2024, Chinese tire brands such as Chaoyang and Linglong have made great breakthroughs in both traditional fuel vehicles and new energy vehicles.
Taking the Beijing Auto Show as an example, the number of supporting models of Chaoyang Tire under Zhongce and Linglong Tire and Atlas under Linglong are 20, 10 and 8 respectively. Chinese tire brands have gradually caught up with Japanese and Korean brands in the number of supporting. From the overall supporting sales data, in 2024, Linglong Automobile Tire Support took the lead among Chinese tire companies.
In addition, in the matching of large-size tires, Wanli Tire has also made breakthroughs repeatedly. At the 2024 Beijing Auto Show, Dongfeng Fengshen and other SUV models joined hands with Wanli to bring a better travel experience. The cooperation with the OEM is an affirmation of the performance advantages of Chinese tires. Because of dissatisfaction, Chinese tire companies have made better performance in the face of pessimism and gradually expanded their brand advantages in the original equipment market-not only to occupy more original equipment shares, but also to attract more potential customers for the future replacement market. However, judging from the current market performance, only China's leading tire companies still have more advantages.
In other words, among tens of thousands of Chinese tire brands, less than 1% of tire brands have received supporting orders. The reason is that as latecomers in the market, Chinese tire brands need a lot of financial support in the early stage if they want to rise. They not only need the support of R&D funds, but also the necessary concessions. However, except for the leading tire companies with sales of more than 20 billion, which tire companies have the capital to "drag" their attempts? After all, "disobedience" still requires financial support. Unfortunately, there are only a few leading companies and listed companies that dare to spend money and have money to spend. The rest of the companies are still "swallowing their anger" when their brand power is challenged.
Stubborn Chinese tires
The rising R&D capabilities
Of course, the improvement of R&D capabilities is an indispensable factor for the leading tire companies to rise in brand power and market feedback, and it is also the reason why Chinese tires are recognized by the global market.
From 1990 to 2010, foreign-funded tire companies poured into China, bringing not only products but also more advanced manufacturing concepts, excellent manufacturing processes and excellent marketing concepts. At that time, Chinese tire companies were lamenting that "tires can be made in this way" and were also working hard to catch up with the product quality of foreign-funded tire companies. After 2010, as the manufacturing system of Chinese tire companies became more mature, Chinese tire companies began to be unwilling to be replicas of foreign-funded tires, and many companies started their own R&D systems.
Sailun spent ten years developing the liquid gold chemical refining technology, which is known as "the fourth milestone technological innovation in the world's rubber tire industry", and transformed it into real productivity and high-quality tire products. So far, more than one million liquid gold tires have been galloping on global roads. While receiving millions of likes from the market, they have also used China's R&D strength to help China's rubber industry reach new heights. In fact, it is not just Sailun Tire, many leading companies are using their hard power to escort global road travel.
The more setbacks, the more courageous, stubborn Chinese tires
The 245% tariff imposed by the United States on China has indeed made Chinese tire companies feel like a thorn in their throats, but looking back at the development of Chinese tire companies in the past 17 years, we can find that after each huge blow, although some companies will never recover, there will also be Chinese tire companies that will rebound again like a spring, becoming more courageous.
After 2008, the world used tariffs to block Chinese tires, and Chinese tires chose to fight back, learning from foreign companies to go overseas and found a new export path; after 2015, the global market laughed at Chinese tires for having only prices but no brands, and Chinese tires launched a supporting counterattack, catching up with the supporting level of global leading companies, and making bold breakthroughs by increasing the penetration rate of new energy vehicles; this time, the 245% tariff has come, and Chinese tire companies are also ready to fight to the end!
