In 2024, China’s tire enterprises started to a hot, whether head tires, or local factories, after the Spring Festival, full orders, demand exceeds supply, the stock market tire plate also rose across the board.

In the context of greater downward pressure on the global economy, is this phenomenon a temporary boom, or a long-term positive support? Combined with some recent industry research report data, to analyze the advantages and potential of domestic tires in the future!

 PART.01

The global share of 29%, domestic fetal enterprises have huge potential
According to relevant statistics, excluding the production capacity of domestic foreign tire enterprises, the current production capacity of domestic domestic tire enterprises is 685.95 million, of which the half steel tire production capacity is 500.9 million, and the whole steel tire production capacity is 185.05 million.
Assuming that the operating rate of domestic enterprises and foreign enterprises is the same, according to the average operating rate of semi-steel tire in China in 2023 is 69%; the average operating rate of all steel tire is 60%, the output of semi-steel tire of domestic tire enterprises is about 345.62 million, the output of domestic tire enterprises is 111.03 million, and the total output of tires of domestic tire enterprises in 2023 is about 456.65 million.

Market share of global tire enterprises in 2023 (output caliber)
Considering that domestic domestic tire enterprises currently have about 100 million tire production capacity overseas, assuming that the operating rate of overseas factories is 75%, the overseas production is about 75 million. In 2023, the total tire output of domestic tire enterprises will be about 530 million pieces.
According to the global tire production of 1.82 billion in 2023, the market share of domestic tire enterprises is about 29%. It can be said that the global market share still has a large room for progress. 

PART.02

There are many export trading partners and strong global business resilience
From the perspective of China’s tire export distribution in 2023, Brazil, The United Kingdom and Russia account for the highest proportion in semi-steel tire export countries (regions), while the United States, Mexico and Saudi Arabia account for the highest proportion in all-steel tire export countries (regions).

China’s tire trading partners have reached 200 +, the tire export data has a strong resistance to a single country from China’s import reduction of toughness.

The annual export volume of semi-steel tire in 2023 is divided into national and regional statistics

2023 The export volume of all steel tire in the whole year is divided into national and regional statistics
Russia is increasing its dependence on China amid its own gap in tire production and sales and a range of tire manufacturers and exporters leaving the Russian market. In the current international situation, Russia’s own recovery process is slow, in the short term dependence on Chinese tire imports or become a trend.
 PART.03

Domestic tire market, the sales scale continues to grow
The development of the tire industry depends on the automobile, construction machinery and transportation industries. The development speed, scale and level of these industries will have a direct impact on the development of the tire industry. According to Research and Markets data, the domestic tire market in 2022 is about 211.7 billion yuan, 2023E (valuation) is 227.157 billion yuan, the compound growth rate of China’s tire industry in 2022-2027 is 7.3%, it is estimated that by 2027, the size of China’s tire market will reach 301.1 billion yuan.

Domestic tire market size (100 million RMB)
According to the market big data summary, the market penetration rate of domestic Chinese tire brands in 2022 is about 47.1%. In the first quarter of 2023, the sales volume of Chinese tire brands accounted for 50.5%, and about 49.7% in the second quarter, and the overall market share in the first half of the market could reach 50.1%. As can be seen from the chart trend, the penetration rate of Chinese brands in the tire market is gradually increasing.

Domestic and Chinese and foreign tire brands accounted for the quarterly sales ratio
According to the sales data of tire stores, Chinese brands accounted for 48.71% in the retail market, and foreign tire brands accounted for about 51.29%. In recent years, Chinese tire enterprises continue to deeply cultivate the tire market, make efforts in the high-end field, follow the pace of the international first echelon, and constantly stand firm in the domestic market.

Domestic tire replacement market of Chinese and foreign brand sales comparison

PART.04

In 2023, China’s tire production and sales are booming
In 2023, China’s semi-steel tire production was 590 million, up 22 percent year on year. Affected by the shortage of domestic products and sufficient foreign trade orders, the capacity utilization rate of China’s half-steel tire sample enterprises basically maintained at a high level. In 2023, the average operating rate of China’s semi-steel tire was 69%, with a year-on-year growth of 9.4%. At the same time, the domestic new energy vehicle market continues to expand, and the tire replacement cycle is coming, which provides new opportunities for enterprises.

In 2023, China’s total steel tire production was 140 million pieces, up 14% year on year. The flourishing situation of production and sales has formed a greater support for the start of all steel tire enterprises. In 2023, the average operating rate of all steel tire in China reached 60.2%, with a year-on-year growth of 8.2%.

It is not difficult to find that, in multiple positive, promote the spring of 2024 orders strong, especially the half steel tire is out of supply phenomenon, many tires at home and abroad plan to expand production, with the gradual release of new capacity, the global share of domestic tires steadily increased, the future development is unlimited!

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