Growth in quality, rather than scale, needed for China’s tyre industry

If you were to look back on the rising presence of Chinese tyres in recent times, you’d be mistaken for thinking manufacturers in the People’s Republic view the world as their oyster and the future as all good. Yet tyre makers in China are not insulated from the economic troubles we’ve experienced since 2008. Last year, China’s economic growth slowed and imports are currently increasing at a greater rate than exports. On top of all this, China is now home to more than 500 tyre manufacturers. And while the top ten Chinese tyre makers together hold 30 per cent of the domestic market, most companies are small and many have product mix and quality issues. In light of these economic conditions and a crowded playing field, a number of larger Chinese firms realise they need to adapt in order to continue prospering. Specifically, they recognise the necessity of investing in quality.

One such manufacturer is the Triangle Group. In April, the company hosted a trade and government summit in Beijing that addressed various issues China’s tyre industry faces and projects intended to ensure its ongoing viability. The 2012 Global Automotive and Tire Industry Forum & Business Summit placed a particular focus on the importance of keeping pace with global developments while protecting the environment…

The full text will be published in the May 2012 edition of Tyres & Accessories