The core elements of China's tire industry in 2022

1. Tire definition and classification

Tires are ground rolling circular elastic rubber products assembled on a variety of vehicles or machinery, usually by the outer tire, inner tube, cushion belt 3 parts. There is also no need for inner tubes, the inner layer of the tire has a good air tight rubber layer, and needs to be equipped with a special rim.

According to the body structure, tires can be divided into radial tires and bias tires. The arrangement direction of the inner cord braid of the radial tire is at a 90 degree Angle to the center line of the tread. Each layer of the bias tire is interlaced with each other at a certain Angle of less than 90 degrees. According to the matrix material, radial tires are subdivided into semi-steel tires and all-steel tires. The skeleton material of the semi-steel radial tire is fiber material, and the other skeleton material is steel wire material. The skeleton material of the all-steel radial tire is steel wire material.

In addition, tires can also be classified according to a variety of ways such as use, pattern, composition, section and pressure inside the tire. According to the use can be divided into car tires, light truck tires, truck and bus tires, off-road vehicle tires, agricultural and forestry machinery tires; According to the pattern can be divided into strip pattern tire, cross pattern tire, mixed pattern tire and off-road pattern tire; According to the composition can be divided into tubeless tire and tubeless tire; According to the section can be divided into narrow base tires, wide base tires, ordinary section tires, low section tires and ultra-low section tires; According to the size of the air pressure in the tire can be divided into high pressure tires, low pressure tires and ultra-low pressure tires.

Second, tire industry policy environment

Tire industry is an important foreign exchange earning industry in China, in recent years, China's relevant departments have promulgated a series of policies such as "tire industry Policy", "Green tire Technical Specifications" and "Tire industry access conditions" to promote the industrial upgrading of the tire industry, regulate the production order of the industry, and promote the sustainable and healthy development of the industry. In May 2022, The State Council issued the "Solid and Stable Economic Package of Policy Measures", proposing various measures to stabilize the growth of automobile consumption, and then stimulate the development of the tire industry.

Third, the development of the tire industry

China's tire industry can be roughly divided into four development stages: the early stage of development, the vigorous development period, the contention period and the capacity optimization period. In 1934, the first domestic car tire research and development success, in 1949, the early days of the founding of China, can produce tires of enterprises only state-owned first, two two tire factories and Shanghai Greater China, Chint two private rubber factory, the total annual capacity of the four is only 140,000. After the reform and opening up, China's tire industry has developed rapidly, and the number of enterprises has been increasing. At this stage, China's tire industry has changed from quantitative change to qualitative change and entered the period of capacity optimization.

Fourth, tire industry operation status

(1) Analysis of the supply and demand status of the tire industry

1, China is a big tire production country, the meridian rate continues to rise

China is a big producer of tires and is at the forefront of the world in terms of tire production. According to statistics, from 2015 to 2021, China's tire production showed an upward trend, affected by the epidemic production shutdown in early 2020, the production declined, and rose to 1.697 billion in 2021. Among them, the output of tire tires is 899 million, and the output of tire inner tubes is 798 million.

At present, China is the world's largest automobile production and marketing country, as one of the supporting industries, the tire industry has developed steadily in recent years. In 2021, China's automobile tire production is 697 million, of which 657 million radial tires and 0.4 million oblique tires.

Radial tire is the mainstream product of the world's tire development, and it is also the key product supported by China's industrial policy. With the gradual improvement of China's tire technology and production level, the domestic tire meridian rate is also gradually improving. According to statistics, in 2015, China's automobile tire meridian rate was 92.01%, and in 2021, it increased to 94.26%.

2. Chinese tires are mainly exported

For a long time, China's tires are mainly exported. According to statistics, the sales revenue of China's tire industry in 2021 is 621.352 billion yuan, the import amount is 6.885 billion yuan, the export amount is 113.112 billion yuan, and the apparent domestic demand market size is 515.125 billion yuan.

3, the United States is China's main tire export market

From the perspective of export destinations, China's tires are mainly exported to the United States, Mexico, Australia, Saudi Arabia, Russian Federation and other countries and regions, accounting for 7.8%, 5.11%, 3.52%, 3.37% and 3.14% respectively in 2021.

The United States is an important area for China's tire export. However, since 2015, the United States has imposed a high "double reverse" tax on some Chinese tires, and the amount of Chinese tire exports to the United States has been declining. The latest "double reverse" arbitration of the US Department of Commerce landed in May 2021, of which China's local tire companies were generally taxed at a rate range of 6.23%-21.09%. According to statistics, China's tire exports to the United States in 2014 amounted to $4.117 billion, and fell to $1.367 billion in 2021.

Although domestic tire companies can mitigate the negative impact by adjusting the structure of export products and sharing the tax rate increase pressure with U.S. dealers and consumers, in the long run, domestic companies want to break through tariff restrictions, branding and internationalization is the ultimate development path. Such as Cywheel tires, Linglong tires and other domestic enterprises have gradually accelerated the globalization layout, have built factories in Southeast Asia and Europe to avoid trade barriers