Supply: The global concentration is high, and the competitiveness of Chinese enterprises is constantly improving

(1) Global: The global competition pattern is concentrated, and the overseas monopoly advantage is obvious

The overall development of the global tire industry is relatively mature, the market concentration is high, and the sales of the top 75 global tire industry account for more than 90% of the global market share. In 2022, the CR3 of the global industry as a whole was 35.7% and CR10 was 60.6%, down 2.6 and 4.5 percentage points from 2021, respectively.

The industry's traditional top three companies are Michelin, Bridgestone and Goodyear, which have strong competitiveness in the high-end car and light duty radial tire market, constituting the industry's recognized first echelon.

In terms of other international brands, the semi-steel products of Continental Tire, Pirelli (which has been acquired by China National Chemical Group), Sumitomo Rubber, Hankook Tire, Toyo Tire and other brands are more concentrated in the mid-range car and light duty radial tire market, forming the second echelon recognized by the industry.

Hangzhou Zhongce, Triangle Tires, Linglong tires, Cylun tires, Shuangqian Group, Fengshen Shares and other enterprises in the global tire industry top 75 list, is the main representative of domestic tire manufacturers, currently in the third echelon. Domestic tire enterprises are gradually trying to approach or reach the world's advanced level through technology research and development, equipment technology, production organization and management, and their market competitiveness is gradually catching up with the second-tier enterprises.

The industry's traditional top three companies are Michelin, Bridgestone and Goodyear, which have strong competitiveness in the high-end car and light duty radial tire market, constituting the industry's recognized first echelon.

In terms of other international brands, the semi-steel products of Continental Tire, Pirelli (which has been acquired by China National Chemical Group), Sumitomo Rubber, Hankook Tire, Toyo Tire and other brands are more concentrated in the mid-range car and light duty radial tire market, forming the second echelon recognized by the industry.

Hangzhou Zhongce, Triangle Tires, Linglong tires, Cylun tires, Shuangqian Group, Fengshen Shares and other enterprises in the global tire industry top 75 list, is the main representative of domestic tire manufacturers, currently in the third echelon. Domestic tire enterprises are gradually trying to approach or reach the world's advanced level through technology research and development, equipment technology, production organization and management, and their market competitiveness is gradually catching up with the second-tier enterprises.

(3) Production capacity: Domestic leaders increase capital expenditure, and foreign leaders shrink factory layout

Domestic tire enterprises expand production against the trend, and factory construction is in full swing. Since 2021, under the background of rising raw material prices and sea freight prices, although the tire industry has launched a general price hike, it is still insufficient to make up for the rise in cost, and the overall profit of the tire industry has declined year-on-year, which has exacerbated the reshuffle speed of domestic tire companies to a certain extent, and many small and medium-sized tire companies have gone bankrupt in 2021. While some domestic leaders choose to continue to increase capital expenditure, since 2018, Linglong, Sailun, Senkirin three leading tire companies continue to increase capital expenditure, factory construction is in full swing, capacity continues to expand.

Foreign: Capital expenditure growth is slow, and tire giants are closing plants more frequently. The capital expenditure of the world's leading enterprises has remained relatively stable since 2016, and the capital expenditure in 2020 has contracted significantly due to the impact of the epidemic. Although it has recovered in 2021, only Goodyear and are recovering to the level of 2019, and other enterprises are still lower than the pre-epidemic level. In addition, overseas representative tire companies have closed some factories since the epidemic, on the one hand, because some old factories are in disrepair, on the other hand, it also reflects the low profit rate of the current tire industry, some enterprises to implement capacity transfer and divest the poor profitability business.

Second, market size: Affected by automobile production and sales, the long-term market exceeded 400 billion yuan

In recent years, China's tire industry market has been affected by fluctuations in automobile production and sales and the new coronavirus epidemic, and the market size has declined from 2018 to 2020. Starting from 2021, with the recovery of automobile sales and the weakening of the marginal impact of the new coronavirus epidemic, the superposition of rising raw materials to the transmission of product prices, the market size of China's tire industry reached about 350403 million yuan in 2021, an increase of 18.75%, and resumed a positive growth trend. The overall size of the tire market in 2022 remained stable, about 362.16 billion yuan.