After the big scuffle between China and foreign countries, large, medium and small tire factories and even small workshops, the current Chinese tire market is ushering in a new factional struggle pattern.
Foreign brands fight and retreat
After foreign tires earned nearly 30 years of RMB in China, the dividends gradually disappeared. With the increasing competition, the share of foreign brands in the Chinese tire market is constantly losing. On the contrary, the operating costs of the entire enterprise are increasing.
The brutal price competition has also made foreign tire brands basically out of the passenger car tire market. In the passenger car tire market, with its strong brand influence, it still occupies about 70% of the market share. However, with the rise of China's semi-steel tire industry, foreign brands can only fight and retreat, and the market share is gradually eroded.
In the competition between foreign and domestic tires, the former one-sided situation is no longer used, and the two sides have officially entered a situation of equal strength and long-term confrontation. It can be predicted that it is not easy for foreign brands to make money in the Chinese market. If they want to make breakthroughs and develop in the Chinese market, they must increase investment.
Judging from the investment of foreign tire brands in China in recent years, European tire manufacturers represented by German brand Macquarie are more active, while Japanese and Korean tire manufacturers represented by Bridgestone and Hantai are flat. Conservative investment means that the market expansion is slow, the demand growth is not fast, and the current capacity and product structure have basically met the market, so it may be difficult to bring returns if you invest rashly.
In sharp contrast to the stagnation of foreign brands, China's tire enterprises have made great strides. With the implementation of a series of policies such as supply-side reform and industrial upgrading, the situation of "scattered, disorderly and small" tyres in China has been changed, backward production capacity has been gradually eliminated, and backward factories have been gradually withdrawn, leaving a lot of market space for advantageous brands.
These have provided preconditions for the rapid expansion of the capacity of China's tire factories in recent years. And gradually formed three giants represented by Zhongce Rubber, Linglong Tire and Sailun Tire. The advantages of the head tire enterprises are becoming more and more obvious, and they have formed a very strong dominance over the market, and have really realized the expansion and strength of China's tires. In 2019, Zhongce Rubber has become the ninth largest tire manufacturer in the world, making history.
China's tire enterprise cluster, represented by the three giants, has formed an indestructible force, began to squeeze foreign brands in the domestic market, and has been burning the war overseas. The well-known domestic tire manufacturers such as Zhongce, Sailun, Linglong and Triangle also performed triumphantly in overseas markets, and displayed the strength of Chinese tires in important tire markets such as North America and Europe.
Guangrao
Guangrao is the famous tire capital of China. There are a large number of large, medium and small tire factories here. The product homogeneity is serious and the competitive environment is bad. With the market reshuffle, today's Guangrao tire industry cluster has formed a large tire manufacturer group represented by Hengfeng Rubber and Plastic, Huasheng Rubber, Yongsheng Rubber and Jinyu Tire. Deribel, Hengyu Rubber and Yongtai were eliminated from the market and merged by these large enterprise groups. Guangrao tire is emerging from the price competition and the production of homogeneous products, transforming and seeking development.
The implementation of the Measures for the Implementation of Capacity Replacement in the Tire Industry of Shandong Province requires that the new, reconstruction and expansion projects in the tire industry must develop capacity replacement plans and implement equal or reduced replacement, which further eliminated backward capacity and promoted the development of the tire industry towards high quality.
At the same time, we will focus on cultivating backbone enterprises that meet the national industrial policy, meet the requirements of green development, have independent core technology and strong market competitiveness. Promote the gathering and development of enterprises, further expand the leading advantage of Shandong tire industry in the country, encourage enterprises to participate in mergers and acquisitions and overseas mergers and acquisitions, and improve the international competitiveness of Shandong tire enterprises. Strengthen management, equipment transformation, technology iteration, product upgrading and other means to improve the quality of development. For enterprises unable to complete the transformation and upgrading, promote the withdrawal of enterprise capacity and merger and reorganization.
State-owned basic plate
Many state-owned tire enterprises in China have a strong background, but their combat effectiveness and innovation often cannot catch up with private tire enterprises. Under the influence of the continuous reform and progress of the industry, state-owned tire enterprises have also begun to settle down, do market and research and development down-to-earth, and have played a key role in the acquisition of large tire enterprises. For example, Twin Star successfully acquired Jinhu and ChemChina acquired Pirelli. It can be said that state-owned tire enterprises are the basic base of China's tires, which can help China's tires stabilize to a certain extent.
At present, the domestic competition pattern is the competition between the foreign camp led by Michelin and Bridgestone and several domestic state-owned tire enterprises, as well as the domestic tire camp dominated by Guangrao and Xiaolong, which has basically changed from the previous "big and small warlords" to the "PK war between large enterprise groups". Although the competition among these tire enterprises is fierce, it has further compressed the living space of more small and medium-sized tire enterprises. In other words, the stronger the stronger, the weaker the withdrawal.
Disclaimer: The image materials and articles of this platform are from the network, so the copyright belongs to the original author. If it infringes your copyright and interests, please contact us, we apologize and delete it quickly. Source: tire business
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