Ten years of global tire taps review and prospect

(1) Indo-Africa Middle East region: the semi-steel tire supporting market in the Indo-Africa Middle East region maintained positive growth from 2015 to 2018, and the growth momentum was better than other regions. We believe that the auto industry in developing countries is still in the stage of rapid development, with greater space for development, and in the face of the epidemic, the decline is more obvious due to the weaker anti-risk ability. In 2021 and 2022, the recovery of semi-steel tire sales in the Indo-African Middle East region is also the most obvious, with sales increasing by 25% and 20% respectively.

(2) European region: From 2015 to 2017, the sales volume of semi-steel tire supporting market in Europe increased year by year, and began to decline after reaching a high of 104 million pieces in 2017, mainly due to the uncertainty of the political environment brought about by Brexit and the introduction of the new emission test of WLPT. In 2020-2022, it will fall to about 70 million due to the impact of the epidemic and the Russia-Ukraine conflict. In 2022, in the case of growth in other regions, the European semi-steel tire matching market tire sales fell 2.6% year-on-year, mainly due to the impact of the shortage of parts in the first half of 2022, the annual sales could not reverse the decline, and the number of new car registrations in Europe in 2022 fell 4.1% year-on-year.

(3) China: Under the influence of many factors such as the advance consumption brought about by the preferential purchase tax policy, the decline in macroeconomic growth rate and the Sino-US trade dispute, China's automobile production and sales in 2018 ended the continuous growth of 27 years, which is one of the important reasons for the decline in the global sales of semi-steel tires since the peak in 2017. The epidemic situation in 2022 has improved, and the growth of car purchase preferential policies and electric vehicle sales has made the growth trend of tire supporting demand good, and the supporting demand for the whole year in 2022 has increased by 6.96% year-on-year.

(4) North America: North American semi-steel tire supporting sales reached a peak in 2016, and 2017-2020 supporting sales declined year by year. In addition to the impact of the epidemic, according to the statistics of Flush and OICA, passenger car sales in the United States declined in 2015-2018, affecting the sales of semi-steel tires in North America. In 2022, benefiting from the improvement of supply chain issues, demand remained stable throughout the year, achieving a year-on-year growth of 9.52%.

In the semi-steel tire replacement market, the demand before the epidemic was relatively stable, and the replacement sales of semi-steel tires in 2022 were 1.154 billion, down 1.11% year-on-year, and sales fell in the two major markets of North America and Asia. Specifically: (1) Asia: After 2015, the consumption of semi-steel tire replacement market in Asia mainly fluctuated within the range of 260-280 million, mainly affected by car ownership and macroeconomic growth. In 2022, due to the epidemic disturbance, China's semi-steel tire replacement sales fell 13.3% year-on-year, dragging Asia's semi-steel tire replacement sales down 4.3% year-on-year; (2) North America: From 2015 to 2019, the replacement sales of semi-steel tires in North America maintained steady growth, and in 2022, the combined impact of high oil prices and inflation and other factors decreased by 3.7% year-on-year; (3) South America: South American semi-steel tire replacement sales are affected by local macroeconomic conditions, such as the 8% year-on-year decline in sales in 2018 mainly due to the economic recession in Argentina (semi-steel tire replacement sales decreased by 18% year-on-year) and the impact of political and economic instability in Brazil (semi-steel tire replacement sales decreased by 15% year-on-year). In 2022, the economic recovery of major South American countries is good, Colombia, Ecuador, Argentina economic growth rate of more than 5%, half steel tire replacement sales rose the most, an increase of 11.6%.