China Tire Market Set to Grow at CAGR of 5.25% in Next Five Years
Demand
for high-end tires and focus of manufactures towards green manufacturing are
likely to drive China tire market through 2025
According to TechSci Research report, “China
Tire Market By Vehicle Type (Passenger
Car, LCV, M&HCV, OTR, Two-Wheeler and Three -Wheeler), By Demand Category (OEM
Vs. Replacement), By Radial Vs Bias, By Rim Size, By Region, Forecast &
Opportunities, 2025”, the country’s tire market is anticipated to
grow at a CAGR of around 5.25% during the forecast period owing to the maturity
of the tire market and dominant position of few leading tire manufactures which
leaves small space for new market players to grow. Moreover, China made around 648
million tires in 2018 which marked the first negative growth in a decade at a
pace of -0.8%. The reasons behind this can be attributed to the China-US trade
war as well as the "anti-dumping and anti-subsidy" duties levied on Chinese
truck tires by European Commission and the U.S. Department of Commerce.
However, in May 2019, United States removed its antidumping and countervailing
duties on Chinese tires which is expected to positively impact the China tire
market growth in coming years. Apart from this, the country’s tire market is now
focusing on high-end products, maintaining brand reputation and is moving towards
green manufacturing to achieve sustainable development goals.
Based on vehicle type, China tire market can be segmented
into passenger car, LCV (Light Commercial Vehicle), M&HCV (Medium &
Heavy Commercial Vehicle), OTR (Off-The-Road Vehicles), two-wheeler and three
-wheeler. In 2017, passenger car tire segment dominated China tire market,
followed by two-wheeler tire, and medium & heavy commercial vehicle tire
segments. Passenger car tire segment is anticipated to continue its dominance
in China tire market through the forecast period as well, on account of
increasing sales of passenger cars across the country. Moreover, the increasing
replacement demand from passenger cars which covers over 80% tires is also a
major factor behind the high demand for passenger car tires in the country.
As per the World Bank, China’s Gross National Income
(GNI) per capita increased from USD 6,800 in 2013 to USD 8,370 in 2017, which,
in turn, has positively impacted the purchasing power of consumers in the
country. The country’s East and South-Central
region accounted for the largest share in the tire market, followed by North,
South-West, North-East and North-West regions of China. The dominance of East
and South-Central region is backed by the presence of important trade centers
and high population density.
Leading market players in China tire market are Beijing
Capital Tire Co. Ltd., Hangzhou Zhongce Rubber Co. Ltd., GITI Tire (China)
Investment Company Ltd., Sailun Jinyu Group Co. Ltd., Kumho Tire Co. Ltd.,
Triangle Tire Co. Ltd., Hankook Tire China Co. Ltd., Double Coin Holdings Ltd.,
Cheng Shin Rubber (China) Co. Ltd., Aelous Tyre Co. Ltd and Prinx Chengshan
(Shandong) Tire Company, among others. In a consumer survey conducted by
TechSci Research, Hangzhou Zhongce Rubber and Giti grabbed the highest
satisfaction level among customers in terms of product quality, product
availability and performance in China tire market. Also, Hangzhou Zhongce
Rubber, Triangle Tire and Linglong Tire together constitute around 80 per cent
of the total profit in the country. However, According to China Rubber
Association, rise in price of raw materials has led to high production cost of
tires. As per 2019, more than a dozen tire manufactures announced a 2%-5% price
hike.
Browse 86 Figures and 5 Tables spread through 155
Pages and an in-depth TOC on "China Tire Market"
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“China tire market is increasingly concentrated which
means strong players tend to be getting stronger and small & medium players
are finding themselves struggling to survive. In 2017, Hangzhou Zhongce Rubber
accounted for the largest market share in China tire market, followed by Giti,
Sailun Jinyu Group, and Kumho. Hangzhou Zhongce Rubber is expected to continue leading
the market through 2025 as well, owing to the continuing collaborations with various
leading OEMs coupled with the company’s strong sales network spread across the
country,” said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm.
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“China Tire Market By Vehicle Type (Passenger Car, LCV,
M&HCV, OTR, Two-Wheeler and Three -Wheeler), By Demand Category (OEM Vs.
Replacement), By Radial Vs, Bias, By Rim Size, By Price Segment (Ultra-Budget/Budget/Premium),
By Region, Forecast & Opportunities, 2025” has analyzed the potential of China tire
market, and provides information and statistics on market structure, size and
trends. The report is designed to provide the intending clients with
cutting-edge market intelligence and help them in taking sound investment
decisions. The report also identifies and analyzes emerging trends along with
essential drivers and key challenges faced by China tire market.
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