Bridgestone withdraws from China’s truck and bus radial tyre market

Bridgestone’s subsidiary in China announced that it would officially terminate its commercial vehicle tyre (TBR) business on 27 February. The move means that the tyre giant will no longer produce and sell TBR products in China, at least in the short term. The company states that “strategic resources will be focused on the high-end PCR market where growth is expected.”

Previously, Tyrepress China reported that Bridgestone had shut down its Shenyang factory. The tyre manufacturer also confirmed the news, saying that its factory in China “has terminated the production of TBR on January 26, 2024.” At the same time, Bridgestone said it would “minimise the possible impact on relevant employees and customers” and “provide quality assurance for products sold and in stock.”

Bridgestone’s withdrawal reflects fierce competition in China’s TBR market. Not long ago, a company headquartered in Shandong expressed similar thoughts to Tyrepress China: China’s commercial vehicle tyre market has meagre profits and companies that want to make profits rely more on exports.

However, the question that tyre manufacturers need to think about is whether the PCR market will be saturated soon. With the rise of electric vehicles, tyre companies are facing new opportunities. Many Chinese manufacturers and foreign brands’ Chinese factories are expanding the production of PCR products. Opportunities always come with hidden dangers. If many companies grow production together, they may bring the risk of overcapacity.

In addition, in early 2024, Chinese electric vehicle manufacturers started a price reduction war. The reduction in vehicle prices will inevitably affect the prices of auto parts. How long the high-profit margins of electric vehicle tyres can be maintained may become a question that tyre manufacturers must think about.