Chinese UHP Tyre Sales Increasing at Twice the Overall Market Rate

Appetite in China for high performance tyres is growing. In mid-May, Michelin launched its Pilot Sport 3 into this market, making 18 sizes available for Chinese consumers. The Pilot Sport 3 complements the Primacy LC, introduced last year, in Michelin’s China market performance portfolio. "We are putting more attention on the high performance tyre market than before, a segment that is growing at a speed twice that of the overall tyre market in China last year," said Antoine Guerin, vice-president of marketing and sales with Michelin (China) Investment Co Ltd.

According to Geurin, Michelin believes the Pilot Sport 3 will set a new benchmark in China’s luxury sport segment. “It’s very important for Michelin to win a high reputation in the high-end market to establish respect in China’s tyre market”, he commented. “And brand is key to winning in the local tyre market as Chinese car owners trust dependable brands when they buy their cars and change their tyres for the first time. Although China’s tyre market is still far from reaching the mature ratio of 30 to 70 between OEM and replacement markets, we see great growth potential in both segments.”

In anticipation of expanding demand for replacement tyres in the coming years, Michelin is in the process of boosting its service and distribution network. The company has expanded its network to China’s so-called third- and fourth-tier cities – those at county level – and now boasts more than 5,000 dealerships across the nation, including over 1,100 premium dealers. “We are now focusing on the training for the dealers in a bid to improve our services,” said Guerin. “This year, Michelin China will provide training for over 4,000 staff for our dealers.”

Goodyear is reportedly also preparing to launch a high-performance tyre range in China, and is expected to do so in July.