Yokohama faces penalties from Chinese customs
The Chinese customs department punished Yokohama’s Suzhou factory for “false declarations and unpaid taxes”.
Now one of the largest tyre-producing countries in the world, China has an indisputable influence on the direction of global tyre trade. The home of both fast-growing up-and-coming brands as well as a burgeoning domestic market, this tag chronicles China’s involvement with the tyre business.
The Chinese customs department punished Yokohama’s Suzhou factory for “false declarations and unpaid taxes”.
Recently, Huayi Group announced its 2023 results. Double Coin, which is responsible for the company’s tyre business, reported 2023 revenue of 10.184 billion yuan (approximately £1.1 billion; €1.3 billion), a year-on-year increase of 1.64 per cent per cent. Throughout the year, the company produced 14.509 million tyres and sold 14.874 million tyres, an increase of more than 10 per cent from the previous year.
Tyrepress China learned during the 2024 Guangrao Tyre Show that local tyre manufacturer Fangxing Rubber is implementing a production expansion plan. Specifically, Fangxing Rubber’s current production capacity is 3 million truck and bus radials (TBR) and 3 million passenger car radials (PCR). After the expansion plans are enacted, the company will have increased its production capacity for TBR and PCR to 5 million and 6 million, respectively.
In 2023, Jiangsu General’s revenue was approximately 5.06 billion yuan (approximately £540 million; €640 million), with a net profit of 220 million yuan (about £ 24 million; €28 million). Compared with the net profit of approximately 17 million yuan (about £1.8 million; € 2.16 million) in 2022, the company’s profit has increased more than tenfold in the past year.
Aeolus’ revenue in 2023 will be 5.74 billion yuan (approximately £620 million; €730 million), an increase of 15.05 per cent from the previous year. Among the market shares, domestic market revenue accounted for 52.23 per cent, and replacement and OE accounted for 28.58 per cent and 23.65 per cent, respectively. According to the tyre manufacturer, it will launch a new 12R22.5 TBR product portfolio in the domestic market in 2023.
Data from China Customs shows that tyre exports continued to grow in April. The quantity and value of exported tyres were 55.49 million units and 13.32 billion yuan (approximately £1.45 billion; €1.7 billion).
The Dongying, Shandong Province-based Huasheng Group is planning to add a Cambodia tyre production plant to its portfolio of five factories. While there are few details at the moment, the even-lower-than-Chinese production costs paired with the company’s desire to increase tyre export sales are said to be the main motivations behind the move. Tyres & Accessories met company representatives during the recent GuangRao Tire and Rubber Auto Accessory Exhibition, which took place between 15 and 17 May in Dongying where the company had no less than five generously proportioned stands exhibiting its range of car, 4×4, light truck as well as truck and bus tyres.
In 2023, Chinese tyre manufacturer Triangle’s achieved revenue of 10.42 billion yuan (about £1.13 billion; €1.33 billion) and net profit of about 1.4 billion yuan (about £150 million; €180 million). Revenue of 10.42 billion yuan means that Triangle has surpassed Double Coin in the ranking of Chinese tyre manufacturers in 2023 and comes in behind ZC Rubber, Sailun and Linglong.
On 15 May Chinese tyre manufacturer Linglong decided to appoint Xu Yongchao as vice president. The reason given by the tyre manufacturer was to “further enhance the company’s core competitiveness and combine it with the company’s business development needs,” but the company did not specify which particular part of the business the newly promoted executive would be responsible for.
During our recent visit to China, on the sidelines of the GRTAE expo hosted in what can only be described as the tyre capital of the People’s Republic, Tyres & Accessories enjoyed a panel discussion with Car and Tire editor, Alex Shi. Formerly an executive within the tyre industry – including time with Goodyear – Car and Tires focuses on business-to-business communications and is particularly strong when it comes to tyre testing and in the social media space. Indeed, they are something of a force online, with some 300,000 followers on WeChat, which is a bit like WhatsApp is here in the West. True to form, not only was our discussion hosted in the main meeting room at GRTAE, it was also video recorded and streamed live to a potential of hundreds of thousands of Chinese-language followers in the East. Beginning with the current state of the respective Chinese and European tyre markets in light of recent macro-economic market trends, our discussion then moved onto the similarities and differences between the European and Chinese online tyre sectors (see part two).
The 14th GuangRao Rubber Tire and Automotive Accessory Exhibition (GRTAE) opened in Dongying City, GuangRao County, Shandong Province, China today. First impressions and the facts released by organisers during the official launch conference, which also included speeches from local officials responsible for the leadership of relevant civic departments, there are some 550 exhibitors here presenting their tyre-related latest offerings to as many as 80,000 visitors.essions and the facts released by organisers during the official launch conference, which also included speeches from local officials responsible for the leadership of relevant civic departments, there are some 550 exhibitors here presenting their tyre-related latest offerings to as many as 80,000 visitors.
When Chinese premiere Xi Jinping landed in Belgrade on 7 May 2024, the Serbian government literally rolled out the red carpet. As well as providing security, the president Xi’s escort of MIG-29 fighter jets was another way of honouring what has become known as the ”ironclad friendship” between the countries. After Serbia, Hungary is the next stop on president Xi’s tour of Eastern Europe. Since both countries have also become home to significant tyre and automotive manufacturing investments in recent years, it appears that the influence of China and Chinese companies in Eastern Europe is growing.
On 28 April, Linglong Tire and JD.com business JD Auto Care signed an agreement that, according to the tyre maker, officially establishes a “long-term, stable, and comprehensive strategic partnership between the two parties.” Under this agreement, Linglong Tire and JD Auto Care will cooperate in regard to product sales, omnichannel service networks and omnichannel marketing.
Michelin recently confirmed plans to end truck tyre production at its Olsztyn factory in Poland and in Shenyang, China, as well as the shutdown of a semi-finished products metal reinforcement operation in Shanghai, China. Parallel to these planned closures, the company intends to invest in passenger car tyre capacities. In addition to expanding car tyre production at its Shanghai plant, Michelin says it will grow passenger car tyre capacities in both Olsztyn and Shenyang.
Yuan Zhongxue, director of the National Engineering Research Center for Rubber and Tire and honorary chairman of the Sailun Group, announced sustainable development goals (SDGs) for the tyre maker during the recent 2024 China Rubber Conference. The SDGs aim to progressively increase the utilisation of sustainable materials in tyre production, targeting 40 per cent by 2030 and striving for 100 per cent by 2050. Additionally, Sailun aims to reduce per tyre energy consumption and carbon emissions by 30 per cent, compared to 2022 levels, by 2030.
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