Tire Price War 2025: Crash & Struggle
Who knows! At the beginning of 2025, the tire industry suddenly changed, the price increase trend was completely cooled, and car companies collectively started a "discounted price" sale! The 205/55R16 hot-selling specification was directly sold out, and the wholesale price and platform price were all over 100, which directly gave dealers CPU dry burning - this market is simply forcing people to go to the end of the road!
In 2025, the price war in the tire market was simply crazy! Since May, domestic tire manufacturers have begun to cut prices in order to sell more goods and occupy more market share.
Take the common 205/55R16 model tire as an example. The price has dropped by 20% to 30% on average, and the wholesale price of some brands is even ridiculously low. By June, international brands could no longer sit still and all joined the battle:
Michelin launched a "buy one get one free" campaign, and the price of 16 to 18-inch tires was directly reduced;
German Continental not only increased discounts, but also extended the warranty for consumers;
Bridgestone reduced the price of tires larger than 17 inches, and Pirelli also lowered the prices of 39 products;
Goodyear even used a big trick, reducing prices while giving subsidies. Its 29 Eagle Wing F1 series tires can be as much as 445 yuan cheaper per piece, plus scanning the code to receive red envelopes and using coupons, the entire market is rolling.
Raw material prices are falling, and cost support is weak
At the beginning of 2025, the price of natural rubber was close to 17,000 yuan/ton, and then continued to fall. On June 20, the main price of rubber fell to 13,820 yuan/ton. Although the downward price fluctuation provides space for enterprises to reduce costs, it also weakens the supporting logic of tire price increases. Combined with weak market demand, price reduction and promotion have become the preferred strategy of enterprises.
Weak demand, high inventory, and price system collapse
In the 23rd week of 2025, China's automobile semi-steel tire operating rate was 73.86%, a decrease of 4.39 percentage points from the same period last year. The high operating rate caused dealers' inventory turnover days to exceed 80 days, and the fragility of the capital chain increased.
In order to clear inventory, dealers continue to suppress prices, and the price system between terminals, e-commerce, and regions is chaotic. There is even a strange phenomenon that the e-commerce price is lower than the store purchase price. In addition, the phenomenon of cross-regional reselling of goods in Shandong, Hubei and other places has occurred frequently, and regional price protection is in name only.
Exports are blocked and enterprises reduce production, and price wars are difficult to stop
Currently, tire companies are blocked from exporting, and domestic sales pressure has increased sharply. Many factories have announced production suspension and holidays to digest inventory.
Although exports may pick up in the second half of the year, expectations for price increases are slim - corporate inventories are high, and some manufacturers on the verge of bankruptcy will continue to cut prices in order to survive. The industry's low-price competition frenzy is inevitable, and it is difficult for the price war to see a turning point in the short term.
