Tire production increased significantly and market competition intensified

According to the latest data released by the National Bureau of Statistics, China's rubber tire outer tire production in November 2024 was 103.445 million, an increase of 8.5% year-on-year. From January to November, the cumulative production of rubber tire outer tires increased by 9.7% year-on-year to 1.087573 billion.

China is the world's largest tire producer, and many tire companies are still expanding production.

Tire companies continue to expand production

According to incomplete statistics, domestic tire companies (including foreign-funded Chinese production capacity) invested more than 27.2 billion yuan in 2023, and the total production capacity of various types of tires increased by more than 150 million; among them, the production capacity of all-steel tires increased by at least 27 million, and the production capacity of semi-steel tires increased by at least 60 million (some companies provided all production capacity information without specific classification and labeling), and the production capacity of off-road tires increased by 710,000.

The tire industry is prosperous on the surface

The crazy expansion of tire companies gives people the feeling that the tire market is huge and in short supply. So tire companies are investing madly to expand production. This is not the case. The current situation of tire companies is more like "going against the current"! If you don't start production, if you don't make progress, if you don't speed up, you will be left behind by other companies.

The terminal market is full of crises
Research on terminal stores, how is the current market? Shop owner: How should I put it? The "customer order" is not good, and the "customer price" can't go up. In short: both volume and profit have dropped, and it is not good overall! And it is worse than last year. After visiting, tire stores in Beijing said that the current tire market is not very good. Online research on terminal stores in other places generally reflects that the market is also difficult. Under such conditions, tire production continues to increase, which is crazy!

Part of the tires produced by Chinese tire companies are sold domestically, and part are exported overseas. However, people familiar with the tire industry know that the current export market is not easy to do. Various countries and regions have boycotted Chinese tires in various ways, which has further intensified the competition among Chinese tire companies.

Reshuffle intensifies, survival of the fittest
Reshuffle is the general judgment of industry experts on the current Chinese tire market. In other words, the strong will become stronger and the weak will withdraw. The trend of unbalanced development of China's tire industry is already very obvious: on one hand, large-scale and well-managed enterprises have further strengthened their market position in a sluggish market environment with their strong ability to withstand pressure, and the sales of some tire companies have soared.

On the other hand, due to various reasons - small scale, poor management ability, untimely transformation, and a high proportion of low-end production capacity, tire companies that are struggling on the verge of delisting and bankruptcy are facing many crises, and there are many brands among these companies that were once extremely prosperous.

It is not that the tire industry has no market, but that backward production capacity will be eliminated. It is also a fact that the overall competition in the tire industry is fierce. In addition, improving the product performance of tire companies is also a topic that will never go out of date!

But in any case, with the continuous increase in tire production, overall competition in the tire market is inevitable.