Tire industry: high-end market to break through

Due to the low brand premium rate, Chinese tire companies mostly take the route of cheap and high-quality, highlighting the advantage of cost performance and selling a large number of overseas markets, with an export rate of more than 60%.

Cylun tire is one of the leading tire industry in China, and its performance is very bright in recent years. In the first three quarters of 2022, the main income of Wheel tire was 16.718 billion yuan, an increase of 26.22%. Net profit returned to the mother was 1.065 billion yuan, up 6.24% year-on-year; Non-net profit was 1.081 billion yuan, up 14.14% year-on-year. However, in the first half of 2022, more than 80% of the company's tire business was sold overseas.

According to the export data released by the General Administration of Customs, in 2022, China's cumulative export volume of rubber tires was 7.65 million tons, and the export amount was 131.418 billion yuan, an increase of 16%. Chinese car tire exports to the United Kingdom, Mexico, Germany ranked in the top three.

Although domestic tire companies have occupied the affordable market with price advantages, for the current domestic tire companies, how to face the continuous price increase of raw materials and how to break through the high-end market and stand firm seems to be more important.