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.
Continental’s Hefei plant held a completion ceremony for the project’s fourth phase. It was revealed that the plant is expected to achieve total planned production in 2027. In other words, the plant plans to achieve an annual production capacity of 18 million semi-steel radial tyres in 2027.
2023 was a good year for many Chinese tyre manufacturers. Especially for listed tyre companies, benefiting from overseas markets and production capacity advantages, they can cope with market competition more calmly. Several Chinese tyre manufacturers report that they are undergoing IPOs in the past year, but no company has completed the main board listing. Therefore, the number of tyre companies analysed this time remains at 10, namely Sailun, Linglong, Triangle, Huayi (Double Coin), Aeolus, and Jiangsu General on the Shanghai Stock Exchange; Guizhou Tyre, Sentury and Doublestar on the Shenzhen Stock Exchange; and Prinx Chengshan on the Hong Kong Stock Exchange.
Doublestar reduced the registered capital of Guangrao Jixing, a wholly owned subsidiary, on the grounds of “strategic optimisation and adjustment”. Information released by the tyre manufacturer shows that the registered capital of Guangrao Jixing has been reduced from 609 million yuan to 205 million yuan.
MESNAC has announced plans to invest in factories in Vietnam and Cambodia. The company’s board of directors has approved two investment plans. The investment in the Vietnam factory amounts to 107 million yuan, and the construction period is about 18 months. The total investment in the Cambodian factory is 27.97 million yuan, and the construction period is 14 months.
On 19 June, the World Brand Lab released the latest “China’s 500 Most Valuable Brands” list. Compared with the data in 2023, there are still nine tyre manufacturers on this brand value list, and the ranking has not changed.
Tyres & Accessories features the tyre retail sector and ultra-high performance tyres in the June 2024 issue, available as an e-paper for subscribers to Tyrepress. The issue also features a special report on the Chinese tyre industry from Shandong Province, as Tyres & Accessories and Chinese language sister website Tyrepress China visit the 14th GuangRao Rubber Tire and Automotive Accessory Exhibition. Non-subscribers can gain access to Tyrepress with a print or online subscription. Tyre professionals can take advantage of the current Tyrepress Membership offer, helping to drive business online and stay informed with the industry’s leading magazine and websites.
Two years have passed since Sailun Group made a memorable first appearance at The Tire Cologne, launching its EcoPoint 3 technology. The company returned in 2024 to make a significant statement about its ambitions for the international market, including Europe. During a large-scale presentation attended by Chairwoman Liu Yanhua and Founder and Honorary Chairman Yuan Zhongxue, Sailun Group introduced its first dedicated Sailun EV tyre, the Atrezzo E-Range. Mr Yuan proudly showcased to a European audience the massive strides China’s tyre industry has made over the past decades.
On 30 May, Cheng Shin Rubber released its 2023 annual report. In terms of sales, the tyre manufacturer’s sales in 2023 were all lower than the previous year. Among all categories of tyres, the sales of motorcycle tyres increased by 0.34 per cent year-on-year, which was flat. However, the sales volume of PCR, TBR, bicycle tyres, inner tubes and other tyre products all declined to varying degrees. The decline in PCR and TBR products was 12.92 per cent and 26.08 per cent.
On 31 May, Kenda chairman Yang Chi-Jen revealed some of the tyre manufacturer’s operations at the shareholders’ meeting. In his words, the company’s Phase II project at its Shenzhen factory in China stopped production on 1 June and was converted into a sales centre and shipping warehouse. After the suspension of production, the products distributed to the southern Chinese market will come from Kenda’s other tyre manufacturing bases, including the Kunshan and Tianjin factories. Before the suspension of production, the project mainly produced motorcycle tyres.
As this June edition of Tyres & Accessories went to press, we were all preparing for The Tire Cologne. Lauded as Europe’s leading tyre exhibition, the 2024 show will be an undoubtedly international event (see next month’s July issue for the review of what took place). Within Tire Cologne’s international remit, Tyres & Accessories understands that a number of well-known as well as up-and-coming Far Eastern manufacturers will be present this year. Since China is the world’s largest producer of tyres by unit volume, and in order to catch up with developments that have taken place post-Covid, T&A recently spent time in China meeting with numerous domestic and international tyremakers there.
Since its inception in 2003, the China International Tyre Expo (CITExpo) has established itself as a prominent platform for tyre industry professionals and enthusiasts in the Asia Pacific region. Building on the success of previous years, CITExpo 2024 aims to provide a more immersive and comprehensive experience for its attendees.
China’s Silk Road Fund has sold its entire stake in Pirelli through an accelerated placement procedure. According to a statement published by the Borsa Italiana stock exchange this morning, the economic development fund has divested some 90.2 million shares, which represents a 9.02 per cent shareholding in Pirelli. Demand for the shares far exceeded supply, and MTP/Camfin have reportedly purchased shares equal to 2.2 per cent of Pirelli’s capital.
With China’s biggest online tyre retailer, Tuhu, having gone public at the beginning of this year, and with that firm alone generating annual sales of 13.6 billion yuan (£1.476 billion; 1.732 billion euros; $1.878 billion), the recent livestream panel discussion that took place between Tyres & Accessories and Car & Tire in China moved on to the similarities and differences between the online tyre business in the UK and Europe compared with China. The discussed touched on subjects including direct retail, pre-sale research and social media.
The 14th China (Guangrao) International Rubber Tire and Auto Accessory Exhibition ran from 15-17 May and reportedly achieved some record-breaking results. Exhibition area reached 52,000 square metres, and the three-day exhibition attracted more than 780 exhibitors from the tyre industry.
The Chinese customs department punished Yokohama’s Suzhou factory for “false declarations and unpaid taxes”.
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