At the Central Economic Conference in 2021, it was proposed that achieving carbon peak and carbon neutrality is an inherent requirement for promoting high-quality development, and it must be unswervingly promoted.
In the past five years, environmental protection has become more and more stringent. Many small tire companies have closed, reduced production, and halted production for rectification under strict environmental protection orders. Clear the way out. But after a wave of cleanups, we have seen more possibilities for the development of the tire industry under the strict environmental protection order.
In the notice issued by Shandong Province on the Implementation of the "Three Resolute" Action Plans (2021-2022), we see that by 2022, an annual output of less than 1.2 million all-steel radial tires and an annual output of 5 million The following semi-steel radial tire companies will all integrate and exit.
This means that those "spoilers" who are technologically uncompetitive and rely solely on unfair bidding to disrupt the healthy development of the tire industry will be completely eliminated. The low-price fight that has plagued the development of domestic tire companies for many years will be completely reversed.
When tire companies no longer rack their brains, reduce profits or even cost, and consume energy for "who sells lower", they will have more profits and more energy as operating guarantees to broaden the track, increase investment and consolidate The core competitiveness of the product.
Eliminating outdated and overcapacity is to give the tire industry a healthier development space and a healthier profit margin, to support the industry to enter a virtuous circle of focusing on R&D and quality, and to help my country's tire products move towards a higher-end market.
When the long-term disorderly low-price competition of tire companies was completely ended, good products with good weight and high gold content gradually filled the vacated market share, and the terminal market also began to make profits.
Before 2017, with the exception of individual brands, most domestic brand tires were unknown in the market, and most of these tires were sold at mom-and-pop stores in third- and fourth-tier cities. Few foreign brands occupy the tire sales market, and terminal sales channels such as tire shops have a weak voice. However, with the elimination of outdated production capacity, low-price and low-quality tire brands are gradually cleared out of the market, and the charm of high-quality domestic brand tires is gradually released.
Five years have passed, and we can see that domestic brand tires are lined up in the terminal retail market of first-tier cities, and their sales performance is not as good as that of foreign brand tires. Eliminating outdated production capacity allows tire shops to have more purchase options-tire retailers are no longer subject to a brand, and the terminal market has more voice. Tire shops can independently carry out sales layout according to consumer demand, attract more consumer groups, and increase sales revenue.
After the backward production capacity is eliminated, the tire industry concentration will become higher and higher, and the "geese formation" industrial cluster has been initially formed, and the production capacity and revenue of leading enterprises have increased significantly. In the first three quarters of 2021, the revenue of most domestic listed tire companies has increased significantly, and many tire companies have expanded their global production capacity. It is expected that with the rapid and high-quality development of leading companies, my country's tire brand influence in the high-end market will also usher in new influence Breakthrough.
Disclaimer: The picture materials and articles on this platform are from the Internet, so the copyright belongs to the original author. If you infringe your copyright and interests, please contact us. We apologize and delete it quickly. Source of the article: Tire Business
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