What is the tire industry analysis chain

1. Analysis of tire industry chain

(1) Tire industry chain structure

The main raw materials of the tire industry are natural rubber, synthetic rubber, steel cord, carbon black, rubber additives, etc., of which natural rubber and synthetic rubber account for about 50% of the production cost, and its price fluctuations directly affect the production cost of tire manufacturing enterprises, which has an important impact on the tire industry.

The downstream applications of the tire industry include automobiles, construction machinery vehicles, agricultural and forestry machinery vehicles, special vehicles, motorcycles, etc., of which the automobile industry is the largest industry in the tire industry.

(2) Upstream market analysis

Natural rubber is wear-resistant, easy to process, and has little environmental pollution, but its output is limited. China's dependence on the import of natural rubber has been maintained at a high level, in 2021, China's natural rubber production is 851,000 tons, imports are 2,385,100 tons, exports are 27,000 tons, demand is 3,209,100 tons, self-sufficiency rate is only 26.52%. The higher import dependence of natural rubber in China will increase the cost control pressure of tire enterprises in China and affect the gross profit level of tire products.

Compared with natural rubber, China's synthetic rubber is mainly supplied by domestic production. In recent years, China's synthetic rubber industry has developed rapidly, and the output has shown a growth trend. In 2021, the output reached 8.117 million tons, the imports were 4.385 million tons, the exports were 606,000 tons, the demand was 11.896 million tons, and the self-sufficiency rate was 68.23%.

(3) Downstream market analysis

In 2020, under the influence of the epidemic situation, global automobile production has further declined. In 2021, global automobile production rebounded, increasing by 3.13% year-on-year to produce 80.146 million vehicles. With the gradual recovery of the global economy, the auto industry is expected to recover further.

In recent years, China's automobile market production has shown a declining trend, and in 2021, the car production is 26.082 million. However, according to the data changes of new energy vehicles in recent years, new energy vehicles will become the growth point of China's tire industry in the future. In recent years, the output of new energy vehicles in China has been growing, with the output reaching 3.545 million in 2021, accounting for 13.59% of the total automobile production.

In recent years, China's car ownership has maintained a steady growth trend, and the growing car ownership will give rise to more tire replacement demand. By the end of 2021, the number of vehicles in the country reached 302 million, of which 7.84 million were new energy vehicles. However, compared with developed countries, China's car penetration rate is relatively low, indicating that the potential demand for tire products is very strong.

2, tire industry competition pattern analysis

At present, there are many local tire manufacturers in China, the industry concentration is low, and the market competition is fierce. The main listed enterprises in the industry are Linglong tires, racing tires, Triangle tires, etc., and the tire output in 2021 is 70.2669 million, 453.3977 million and 250.4414 million, respectively, accounting for 4.14%, 2.68% and 1.48% of the total output.

3, tire industry development trend analysis

(1) Green development

With the continuous improvement of social environmental awareness and the increasing popularity of environmentally friendly cars, the promotion of green tires and the realization of industrial upgrading have become the main development direction of China's tire industry, and green tires will have broad market prospects. On the one hand, tires should be further developed in the direction of lightweight; On the other hand, it is necessary to develop renewable resources and raw materials, and use environmentally friendly, non-toxic and harmless, renewable and non-restrictive materials.

(2), high-tech development

With the development of new energy vehicles, the performance requirements for tires are also increasing, and tires are developing in the direction of high technical content. The structural design and formulation of many tires need to be improved and adjusted to meet the requirements of market changes, which puts forward higher technical requirements for tire manufacturing.

(3) The overseas layout process is accelerating

In recent years, domestic tire companies have accelerated their overseas layout. The establishment of overseas production bases is conducive to shortening the transportation time of raw materials, reducing costs, and avoiding the adverse effects of some countries' trade protection policies against China. The establishment of R&D centers overseas is conducive to attracting excellent technical talents from developed countries and improving the level of R&D.