Having just experienced the “blowout†in 2009, the domestic tire industry is facing downward pressure. In 2010, the domestic tire industry was faced with multiple factors such as export obstruction, foreign competition, and rising costs, undoubtedly making domestic tire companies worse. Some experts believe that in 2010, China's tire industry is facing greater challenges. Decline in exports, bankruptcy, mergers and acquisitions in the industry, and the search for new exports are all huge challenges facing them.
Where is the way out for the domestic tire industry in 2010? Whether from national government agencies, industry associations, or companies, the industry has stated that it is recommended to regulate the domestic tire industry, encourage and support the reorganization and mergers and acquisitions of domestic backbone enterprises, establish large-scale tire enterprise groups, and form large tire enterprise groups with scale advantages, depending on domestic Markets and the expansion of emerging markets in Africa, South America, Eastern Europe, the Middle East, and ASEAN, efforts to increase market share.
Foreign capital accelerates the layout of the domestic market
Although the domestic tire industry has complained repeatedly, this does not prevent foreign companies from accelerating their ambition to expand domestically. Due to the rapid rise of China's auto industry, with the supporting tire industry is also quite promising.
It is understood that the world’s top 10 multinational tire companies have already settled in China. Former state-owned key tire companies, 50% have been merged by foreign capital. More than 80% of the domestic radial tire market has also been eroded by foreign tire manufacturers.
Hanhyeon Tire, the world's seventh-largest tire manufacturing company, said in an interview with reporters that in recent years, Hankook Tire has achieved outstanding results in many areas, especially since 2006, it has become the 11th global tire manufacturer in 2001. The seventh largest tire manufacturer, and continues to the present, these benefit from long-term cooperation with the Chinese market. China plays an indispensable role in the global development of Hankook Tire.
As the world’s second-largest tire manufacturer, Michelin announced in early January this year that it will invest US$1 billion in the construction of a passenger and truck tire factory in Shenyang, China. The plant is scheduled to start production in 2012. On February 2nd, Michelin again received nearly 30% of the shares transferred by Shuangqin Group Co., Ltd. for RMB 170 million, and fully received Palm Hai Michelin Warriors.
Yokohama Tire will carry out the fourth phase expansion of the Hangzhou passenger car tire factory and plans to increase its annual production capacity from 3 million to 5.1 million. In addition, Toyo Tire & Rubber Company announced on January 28 that it will invest USD 9.8 million to establish a wholly-owned subsidiary in Zhangjiagang, Jiangsu Province, China to produce passenger cars and light truck tires.
Reorganization and M&A to Maintain Tire Industry Development
The data released by the General Administration of Customs recently showed that the impact of the special security case on China’s tire exports has become increasingly apparent. The import and export monitoring and early warning of the General Administration of Customs shows that from January to November of last year, China exported 270 million tires, valued at US$6.9 billion, which was 7.4% and 8.5% lower than the same period in 2008. In particular, exports in the two months of October and November have been significantly reduced.
Fan Rende, secretary-general of the Rubber Association of China, believes that 2010 will be the “tyre special protection case†that has caused the most serious damage to China’s tire industry. As the market for tires and other rubber products in the world has not significantly recovered, it has also increased China’s rubber industry. The difficulty of running this year may be the most difficult year for the development of China's rubber industry since the beginning of the new century.
Even with heavy pressure, the unlimited prospects of the domestic tire industry cannot be evaded by anyone. The key is how to resolve the obstacles in progress. What is the feasible road for the tire industry in 2010?
The National Development and Reform Commission, as a national industrial development plan, recommends that domestic enterprises should be actively appealed to minimize losses; at the same time, encourage and support the reorganization and mergers and acquisitions of domestic backbone enterprises, establish large-scale tire enterprise groups, and form large tire enterprise groups with scale advantages. , strive to build a strong brand, break through the bottleneck of the brand, increase market share and so on.
"The number of domestic tire companies is quite large, but there is fierce and unscrupulous competition. We should strictly simplify and reorganize qualified companies, encourage companies to restructure their mergers and acquisitions, adjust their industrial structure, and achieve industrial upgrading." Even the industry's outspoken suggestions.
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