Tire industry: rise in innovation and breakthrough

China as a tire manufacturing country, since 2006, the output has been ranked first in the world, the total output of tires accounted for 35% of the global total production capacity, exports accounted for about 40% of the global total output.

Since the beginning of this year, China's tire market started well, after experiencing the double test of industry reshuffle and epidemic, China's tire industry showed "polarization", the advantages of leading enterprises are more prominent, in the international and high-end market competition, but also more confident.

Tire industry pattern changes

Data show that last year, the global total tire sales of 1.577 billion, down 11.7%. Among them, the supporting market and replacement market achieved 399 million and 1.178 billion, respectively, down 14.7% and 10.6% year-on-year.

The COVID-19 outbreak last year had a profound impact on the global tire industry. On the one hand, total global tire sales have declined; On the other hand, the global tire industry pattern has been differentiated, the performance of global tire giants has declined sharply, Bridgestone, Goodyear performance loss; On the other hand, China's tire head enterprises have bucked the trend and reached a new high. Linglong Tire's net profit exceeded 2.2 billion yuan for the first time, an increase of 33.13%; Senqilin achieved a net profit of 980 million yuan, an increase of 32.38%; Guizhou tire net profit growth is more than 7 times.

In fact, this kind of divergence has already begun to emerge, and the epidemic has only played a "catalyst" role. The core reasons for this situation can be attributed to two aspects: on the one hand, compared with overseas brands, domestic tire brands have obvious advantages in labor costs and transportation costs, products have a more significant cost performance, with domestic tire leading enterprises to go out to build factories, the share of overseas replacement market enterprises is squeezed, and the global market share continues to rise. On the other hand, the trend of large-size tire consumption has intensified, especially in the passenger car market, with the transformation of product structure and rising prices, promoting the continuous improvement of gross profit margin.

At present, domestic and foreign tire demand continues to pick up, domestic brands accelerate to erode the market share of overseas giants, China's tire industry is ushering in structural opportunities, and the share of domestic enterprises is expected to continue to expand.

High export growth drives domestic demand

From the export data, this year, China's new energy vehicle export data increased month after month. Tyre exit figures are correspondingly brighter. According to the National Bureau of Statistics, from January to May this year, the cumulative output of rubber tires in the country was 380 million, an increase of 35.1% over the same period last year.

Zhang Yansheng, a researcher at Xinda Securities, believes that the increase in the global market share of Chinese tire companies is mainly due to two factors: on the one hand, the rapid development of China's automobile market; Another important factor is mainly benefiting from the share of commercial vehicle tire products in the global tire market. The main area of Chinese tires is in the truck and bus tire (TBR) market, accounting for more than 70% of the global market share.

It is reported that according to the use of tires can be divided into two categories, one is passenger car tires, the second is commercial vehicle tires, commercial vehicle tires including truck and bus tires (TBR), construction machinery tires (OTR) and aviation tires.

With the arrival of "gold nine silver ten", the start of tire enterprises is expected to increase. In addition, with the gradual control of the global epidemic, the increase in travel demand in Europe and the United States, the demand for tires is expected to gradually increase. Exports still have room to improve.

High export growth drives domestic demand. From the perspective of domestic sales demand, with China's per capita GDP exceeding $10,000, consumers' demand for tires is gradually refined, and tire performance requirements are gradually improved. China's leading tire enterprises are equipped with more sufficient funds and strong research and development strength. In recent years, product performance has been greatly improved, so it can quickly reflect the terminal demand for tire consumption upgrading. And compared with international brands to highlight the cost advantage.

In the process of rapid development, although the overall scale and brand influence of China's tire industry are still relatively weak, independent brand tires have gradually achieved production capacity from small to large, and are forging ahead toward the goal of large to strong, and brand recognition and influence are rising.

Domestic tires are not popular

For the car, the tire is one of its important components, the car's handling, power, safety, driving stability and other aspects of the performance will be affected by the tire.