Strong Growth in China

Analysts have reported strong growth in both tyre production and exports in the Chinese market, with exports growing at a substantially faster rate than production. Quoting data obtained from the National Bureau of Statistics, analysts state that 2005 was a year of steady growth for China’s tyre industry, with output reaching 283 million units, an increase of 18.7 per cent over the previous year. This equates to sales revenue of more than RMB80 billion ( £5.25 billion ).

Up too was radial production, with 142 million radial units made, a figure accounting for more than half of all tyres produced in the country. Both domestic and international manufacturers are in the process of expanding their radial production facilities in China.

In terms of exports, 2005 was another year of records. Export volumes during the year were 31 per cent higher than in 2004, with some 91 million units being shipped to overseas markets. Export value amounted to US$3.2 billion, a year on year increase of 50 per cent.