The tire industry in 2022, six development trends

First, big brands force high value-added tires

The representative enterprises of this trend include Michelin, Bridgestone, Horse brand, Pirelli and other international brands. Bridgestone's latest sustainability report points out that China is a key deployment area for its high-end strategy. In order to rebuild the profitability of the core business, the company is strengthening the proportion of high value-added products in the tire business and steadily advancing the sales of passenger car HRD tires (large rim diameter tires).

Second, tire production capacity integration acceleratedIt has been observed that cutting non-profit production capacity and business and investing in emerging industries is one thing that major tire giants are doing. In recent years, Michelin and Bridgestone have closed a number of tire factories around the world. Factories that are closed are generally less profitable. At the same time, the giants are also spinning off and selling off unprofitable businesses. It should be noted that these actions are not intended to change the diversification strategy. Because they are also interested in investing in new industries to cultivate new growth points.

Third, specific markets or the birth of new giants

In the next period of time, in specific tire segments, new tire giants may be born. The representative company of this trend is Yokohama Rubber (Yokohama). In recent years, the Japanese tire manufacturer has frequently made efforts in the OTR tire market, and has acquired Aichi Tire and ATG Tire in India. More recently, it has been reported that they also want to buy Sweden's Trelleborg. Becoming bigger, stronger and more refined in the specialized market has become a new development direction for tire enterprises.

Fourth, domestic leading enterprises actively seize market share

The adjustment of the international giants in the Chinese market, as well as the big reshuffle of domestic enterprises, has provided more development space and opportunities for the top tire companies. At present, domestic leading enterprises are actively expanding production capacity and seizing market share. Representative enterprises include Zhongce, Linglong, Sailun, Triangle, General purpose, Chengshan and so on. In 2022, the above enterprises will take advantage of supporting and after-sales market advantages, and their market share will be further improved.

Five, tire supporting market staged "Tian Ji horse racing"

In the field of passenger car tires, the trick of "Tian Ji horse racing" has been staged. Hankook Tire supporting Porsche and other high-end sports cars, and actively with Pirelli, Michelin parallel; Chinese-funded tire enterprises have gradually entered the supporting system of joint venture automobile enterprises, and their share has gradually expanded; At the same time, in order to enhance the influence of automobile brands, Chinese car companies intentionally choose Michelin, Horse brand and other big brand tires. There are two logic behind this: one is cost-effective, and the other is brand influence.

Six, tire industry "double cycle" to form a new pattern

More than 40% of Chinese tires depend on the export market. As trade barriers rise and the scale of overseas factory construction increases, overseas factories are seizing (or retaining) this part of the market share. Overseas factories have become a new engine of "external circulation" and have grown into the main force for Chinese enterprises to seize the international market.

At the same time, the Chinese market strategy of foreign-funded enterprises has been adjusting. Some foreign brands have previously used China as a manufacturing base to supply the global market. Now, they are gradually adjusting the ratio of production capacity.  In addition, due to the obstruction of exports, the "inner cycle" market is seriously internal volume, the competitive pressure is great, and the profitability of tire enterprises is reduced.