Reorganization of automobile tire industry within three to five years

“Originally, we have about 10,000 tires exported by manufacturers every month, but now there are only 4,000.” On November 5th, 2009, at the time of nearly two months in the special tire protection case, Mr. Yu, a salesman of a tire manufacturer in Jilin Province, told According to the reporter, the export of some of their tire manufacturers was still affected, but the domestic sales situation was much better than expected.

Mr. Yu said that due to the obstruction of tire exports, some tire manufacturers are facing consolidation. It is expected that the tire industry will experience a major reshuffle in 3-5 years, and manufacturers with strong strengths will merge weak manufacturers.

The domestic market unexpectedly

Mr. Yu said, “In fact, our sales expectations for 2009 were very poor in 2008, but I did not expect that the various preferential policies saved the tires. The tires are roughly divided into three categories: heavy tires, light truck tires, and agricultural tires. After the introduction of the tax exemption for fuel and the liberalization of loans and car purchase policies in the country, sales of heavy heavy tires have also increased substantially with the increase in the sales volume of heavy trucks. Another reason is that the state supports the policy of car transportation to the countryside. It also saved the tire companies, but the export part is very unsatisfactory, and many large-scale, high-value tire manufacturers are more affected."

Mr. Yu said that if there is no incentive policy to promote, it is hard to imagine where the tires will be sold. After the tire protection plan in September 2009, many export tires were blocked. According to common sense, these tires that are converted into domestic sales will lead to The market was sluggish, but these policies increased demand, so sales of tires in 2009 were much better than expected, and sales increased by 50% to 60% compared with the same period in 2008.

Three to five years of mergers and acquisitions

Mr. Yu’s statement was confirmed by the president of Changchun Tire Industry Association Sha. He told reporters that tire sales have also clearly felt that tires are very popular in 2009, "some tire models, tire manufacturers in short supply, vendors need to wait in line."

However, Mr. Yu told the reporter that although the current tire market conditions are relatively stable, but with the tire impact of the special protection case to China's export of tires, the country has considered the introduction of the tire industry market access conditions, and control of tire exports. He introduced that at present, there are about 500-600 manufacturers of tires in China, and 300-400 in Shandong Province, accounting for about 60%, and there are still some in the south, but the proportion of Jilin Province is not large. However, the tire industry in the three to five years to rectify, is bound to be the industry, of course, including Jilin Province, "the future of the tire industry is the competition between the strength of the competition, the country's upcoming tire industry market access conditions have already shown that the threshold to be improved. And, in the future, the tire manufacturers will have to transform to joint-stock systems, and the powerful and large-scale tire manufacturers will merge the weak and small-sized tire manufacturers.” Mr. Yu told reporters that the integration of the tire industry may take three to five years if the state issues tires. As the entry barriers to industry conditions increase, the number of tire manufacturers will decrease.
View related topics: China and the United States tire special security case


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