The tire industry at the end of the year again raised the price tide: leading enterprises led the rise, small and medium-sized enterprises "stomach and back"

The person in charge said that under normal circumstances, tire companies raise prices by 5%, the terminal only dares to rise by 2%, and if the tire factory cuts prices by 5%, the terminal often goes down by about 7%. "The current situation is that the price of some tire factories has risen by 5%, but because of the shrinking demand in the terminal market, the transmission chain of price increases is not very smooth."

Linglong Tire previously said that in 2021, affected by the rise in raw material prices, the company has raised prices several times, but the chip shortage and the price of steel and other materials used in automobiles have risen, and the company's supporting end prices can not be fully transmitted.

It can be said that in the whole price increase cycle, tire companies are under greater pressure than the terminal market, and slow price increases are difficult to offset the impact of costs. The poor performance of the terminal market is so that they do not dare to sharply increase prices, and ultimately can only rely on compressed profit margins to digest the operating pressure.

Zhao Guang told the 21st Century Business Herald reporter, "Small and medium-sized tire companies are now being squeezed by both upstream and downstream, and are in a very difficult situation." Upstream raw material prices have been rising, downstream demand is relatively poor, our current survival has been relatively difficult, the entire 2021 is in a state of loss."

Talking about the market situation this year, Wang Yunwei said frankly, "As far as the current market situation is concerned, raw materials and oil prices are fluctuating at high levels, so the raw material procurement cost of enterprises is still relatively high, and the pressure on enterprises is still great this year."

In the face of operating pressure, many tire companies are also actively seeking the road of transformation and upgrading, through technology research and development and product innovation to achieve breakthrough. In the view of the industry, in recent years, under the promotion of favorable policies, the explosive growth of domestic new energy vehicles, and the demand for new energy special tires has become high, which is a major positive for many tire companies.

The 21st Century Business Herald reporter found that domestic tire companies have increased research and development investment in response to the demand for new energy vehicles or special vehicles, and produced new categories of tires with higher profit margins, which has also become a new "tuyere" in the tire industry.

Qingdao Double Star previously said that at present, the company has established a cooperative relationship with major domestic new energy vehicle manufacturers, and is gradually realizing the tire matching of major new energy vehicle brands. Guizhou Tire also said that new energy vehicles put forward higher requirements for the wear resistance and energy saving of tires. The new products newly developed by the company are in line with this development trend of new energy vehicles and can meet the use needs of new energy vehicles.

In addition, under the dual-carbon strategic goal, more and more stringent environmental policies are also testing tire companies, companies must tap the potential to reduce energy consumption and achieve low-carbon development. "We believe that in addition to challenges and tests, there are also some new opportunities in the industry, and we hope we can seize this round of opportunities." Zhao Guang said.