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 export office of Qingdao-based Xingyuan Tires Group, which is around the 30th largest tyre manufacturer in the world and has been a top 10 Chinese tyre manufacturer since 1994, has announced the introduction of the new Anchee passenger car tyre brand.
It’s almost eight months since the European Commission made its final decision regarding anti-dumping duties on new and retreaded truck and bus tyres manufactured in China, and Vipal Rubber is celebrating what it considers an “upturn in the tyre retreading market in Europe.”
Maxion Wheels and new joint venture partner, Dongfeng Motor Parts and Components Group, have held a groundbreaking ceremony at the future site of their 22,000 square metre aluminium wheel plant in Suizhou, China. The ceremony took place on 6 June and was attended by government officials and company dignitaries, customers, suppliers and associates.
The size of the UK truck tyre market by sell-out unit volume fell 9.8 per cent in 2018 set against the backdrop of European import tariffs, according to GfK data presented at Autopromotec 2019. But what do the tell us about the effectiveness of the tariffs?
At the time of going to press, the President of the United States of America is mid-way through a state visit to the UK. Before he even landed on British soil, President Donald Trump stirred up controversy by tweeting his disparaging thoughts about London Mayor Sadiq Kahn. Whatever view one might hold about the propriety of Trump’s visit, we all know that 31-gun salutes and tea with the queen are about more than niceties. Sure enough less than 24 hours into the state visit, presidential talk turned to trade, with Trump backing out-going Prime Minister Theresa May to complete Brexit negotiations and promising a “phenomenal” trade deal between the US and UK. But all this is set against the backdrop of all-out trade war between the US and China at the same time that Europe is involved in somewhat more Cold War-esque trade skirmishes with China as well. The questions are: do such measures work? And what do they mean for the tyre business?
Following the US’s implementation of 25 per cent import tariffs on Chinese aluminium wheels on 1 May, China exported 70,400 metric tonnes of aluminium alloy wheels in April, down 9.6 per cent compared with the previous month and down 11.6 per cent compared with the year before. However, while down Chinese wheel exports in April were above their recent low point. In February exports dipped to the lowest in five years at 53,700 tonnes.
Despite trade disputes and tariffs, China remains interesting for tyre distributors and buyers around the world. Furthermore, China’s tyre market itself stands to benefit from future growth in the country’s automotive aftermarket. Although the 28 million new cars sold in China last year represented a three per cent decrease on 2017 sales figures, the number of vehicles requiring replacement tyres will continue on an upward trajectory over the coming years. Against this backdrop, the China International Tire Expo (CITExpo) positions itself as an ideal trade fair for international and domestic visitors alike.
The USA has determined the rate of anti-dumping and countervailing duties it will charge on steel commercial vehicle wheels imported from China, and the levels set are high. This month, the US Department of Commerce announced final anti-dumping duties of 231.7 per cent and countervailing duties of 457.1 per cent.
Qingdao Doublestar Tire, owner of Kumho Tire since July 2018, has once again grown through an acquisition. The Chinese tyre maker says it has completed the purchase of Shandong Hengyu Technology Co., Ltd. for RMB 899 million (£103.1 million). Doublestar disclosed in March that it had signed an agreement with Hengyu Technology’s administrator to acquire 100 per cent equity in the business.
The first radial earthmover tyre made by Guangxi Linglong Tire rolled off the production line earlier today. For the wholly-owned subsidiary of Shandong Linglong Tire, the start of production represents an important milestone in Linglong’s RMB 4 billion (£454 million) investment programme. Through this investment, Linglong aims to manufacture 20 million high-performance car tyres, 2 million all-steel truck radials and 60,000 specialty tyres per annum.
In the USA, the recent United States Trade Representative (USTR) Section 301 investigation exploring potential tariffs on a range of Chinese imports has reported back. After tariffs of 10 per cent were put into place in September, the planned increase to 25 per cent in January was delayed while trade talks continued.
The European Commission reports that applying anti-dumping duties to truck and bus tyres manufactured in China is having the desired effect. According to EC figures, dumped or subsidised imports were 81 per cent lower six months after the measures were imposed than during the investigation period.
Continental isn’t only in the business of making tyres and automotive systems – it also wants your new car to smell nice. The company is striving to improve mobile olfactory ambience with its Acella interior material.
Bridgestone says it “takes seriously any unauthorised use or infringement of its patents, design rights, trademarks, or any other intellectual property,” and in the past the tyre maker has shown itself willing to legally challenge such infringements. It has now announced another court victory: Bridgestone has received a favourable ruling from the Beijing Intellectual Property Court in its design rights infringement lawsuit against major Chinese tyre manufacturer Shengtai Group.
Authorities in India are conducting an investigation into alleged subsidies on truck and bus tyres imported from the People’s Republic of China. According to a document released on Wednesday by the Directorate General of Trade Remedies, a department of India’s Department of Commerce, the investigation is taking place in response to a submission filed by local industry representative the Automotive Tyre Manufacturer’s Association (ATMA) on behalf of tyre makers Apollo Tyres, J. K. Tyre & Industries, MRF and Ceat. Should the allegations be verified, the department will recommend implementing countervailing duties.
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