Affected by the vigorous development of the freight industry, the domestic tire industry has always had strong operational vitality, but at the earliest time, the domestic tire industry has always been monopolized by foreign companies. How did the tire rise?
The tires mentioned here are not tires used in cars, but “engineered tires” used in large trucks. This type of tires are widely used in terminal transportation, mining, construction material transportation, etc., so their quality, material, and service life are relatively short. High standards, and it is this type of tire market that has long been controlled by foreign companies.
Those who are familiar with the tire industry must have heard of such brands as Bridgestone, Michelin, and Continental. These French and German companies have long occupied an advantageous position in the domestic engineering tire field.
Due to its good product quality and long service life, it is often the first choice for major engineering automobile companies to purchase. However, it is precisely relying on the product's competitive advantage that these foreign companies have repeatedly raised the price of tires. When there is no development advantage, the price of a Michelin engineered tire is as high as 600,000 yuan, with a minimum of 400,000 yuan.
The reason for such a high price is not because of the high production cost, but because of its monopoly advantage. Simply put, it is the control of the pricing power of the industry. Therefore, the profit margins of these tire manufacturers are ridiculously high. There was once a French investigation agency. A survey of Michelin and many other tire giants found that their profit margins were at least 45% or more.
As domestic tire demand is steadily increasing, and foreign companies’ product prices are so high, more and more Chinese companies are seeking to improve product quality, hoping to break the monopoly of foreign companies through this method.
A large number of high-quality manufacturers have emerged in the country, and companies such as Triangle Tire, Sailun Group and Shandong Yinuo have invested in the research and development of high-end tire products.
In 2007, Triangle Tire even won the National Science and Technology Progress Award by virtue of its new production technology and production equipment, and Sailun Group started from the actual application field and integrated anti-wear and impact resistance into its own tire products. In, successfully led a series of manufacturers to enter the ranks of international high-end tire production.
To this day, domestic tire companies have gained a greater advantage in international development. In July this year, the ranking list of international tire companies was released. Among the 75 powerful companies in the world, 36 Chinese companies have won almost 50% of industry seats.
In the top 10, Zhongce Rubber and Zhengxin Rubber ranked ninth and tenth respectively.
Linglong Tire is the only one among the top 20 tire companies in the world to achieve high revenue growth, with a growth rate of 14.73% under the condition that the global economic development is hindered in 2020.
It is precisely because of the rise of these outstanding Chinese companies that the monopoly of Michelin and other foreign tire companies in China will be broken, and now these companies will work together to increase product prices. Why?
Beginning in the second half of this year, major domestic tire manufacturers have started to increase prices. As of November 3 this year, 84 domestic companies have completed price increases, and many companies’ price increase deadlines have been extended. By 2022.
In this upsurge of domestic tire prices, domestic tire prices have increased by 10%, and even the smallest tire products in the market have increased by 2%.
One of the main reasons for this is that the material supply of domestic tires has problems. Due to the skyrocketing shipping prices and the suspension of operations of shipping terminals in many places due to the epidemic, it is difficult for many companies to buy production materials in large quantities, so they are not allowed. Do not shrink production capacity and raise prices.
At the same time, there is another reason. In September of this year, due to the domestic regulation of iron ore and other bulk commodities export management measures, the scale of domestic mineral resource procurement dropped sharply, which indirectly affected the production of domestic tires.
Due to the reduction of production capacity and expected production targets, domestic tires will only be in short supply in the near future, and price increases are justified.
Disclaimer: The picture materials and articles on this platform come 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 News
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