International manufacturers’ revenue in China down last year, says CRIA

According to the China Rubber Industry Association, the 43 major tyre companies belonging to the association’s Tyre Branch increased their production by an average of two per cent in 2012, producing a total of 325.5 million tyres, 287 million of which were radials. Sales revenue for the 43 companies was RMB 205.6 billion (£21.9 billion), a 0.3 per cent year-on-year increase.

This total increase in production and revenue can be described as modest, however the CRIA differentiates between the experiences of Chinese-owned tyre makers and the local operations of international tyre manufacturers. The association says the 31 domestic companies from the group of 43 experienced an average growth in production equalling 6.3 per cent and a 2.4 per cent increase in sales revenue year-on-year, while production at the 12 overseas-funded operations decreased 3.8 per cent year-on-year and sales revenue dropped 4.7 per cent.

Overall exports rose 0.7 per cent year-on-year to 139 million units and had a total export delivery value of RMB 71.8 billion (£7.7 billion) – representing a year-on-year growth of only 0.1 per cent. Again, the CRIA notes that domestic tyre makers performed better than the local subsidiaries of global tyre majors; in terms of revenue the 31 domestic firms enjoyed a 2.0 per cent increase, while the average value of exports from the 12 Chinese operations belonging to overseas companies decreased 4.3 per cent. The CRIA explains this variation as a reflection of the efforts made by Chinese companies to export and the greater focus the foreign-funded competition places on developing their activities within the Chinese market.