Driven by an increasing sales of passenger and commercial vehicles and a strong demand for replacement tires, the global tire market reached 2.8 billion units in 2015. Currently, China represents the world’s largest tire market, accounting for around 42% of the total global demand. The automotive industry has grown at an incredible pace which further propelled the development of this market in terms of production as well as sales. According to a recently published report from IMARC Group on the global tire market, it was found that the tire market in China reached volumes worth more than 1.2 billion units. With a rising population, growing standards of living and increasing disposable incomes, the purchasing capacity of the people has improved which is ultimately driving the demand for tires in China. Moreover, new technological advancements in tire industry and an increase in R&D investment has further enhanced the market competitiveness. The government is now shifting their focus towards high quality tires that are fuel efficient and less prone to CO2 emissions. Increasing number of tractors/trailers with powerful engines for agricultural purposes, highway development and an increasing demand for tubeless tires in domestic as well as export markets has helped in the development of the automotive and tire industry in China.
China is also a leading exporter of tires to the USA and UK. The country has the largest car parc and still shows the growth potential in the domestic tire market. The continuous rise in the number of vehicles, however, has persistently gained the attention of the government and the concerned authorities towards the rising pollution and the problem of congestion on the roads. Vehicle population and their emissions have posed the challenge of maintaining air quality all over. As a result, the government has imposed vehicle emission control strategies time and again. Some of the cities like Shanghai and Beijing have implemented car ownership control policy and made efforts to restrict vehicle registration and their use. Moreover, the sales of new cars are on the wane while the sales of used cars are increasing. As a result, the automobile sales in China are slowing down which in turn is affecting the sales of the tires.
The Chinese tire market faced another challenge when the US and European Union changed their trade policies and imposed tariffs to limit the tire exports from China. Despite such challenging trade conditions, the Chinese government has taken steps to maintain their global position in the tire market. This includes improvement in their product performance and measures to expand their exports to other regions. Regardless of the challenges, the Chinese tire market has numerous opportunities and shows great potential for further growth both in the domestic and non-domestic regions. The market will continue to grow at a rapid pace as projected till the end of the year 2021.
Browse related press release: https://www.imarcgroup.com/global-tire-market
According to IMARC group’s report titled “Tire Market – Industry Trends, Manufacturing Process, Plant Setup, Machinery, Raw Materials, Cost and Revenue” the market has been segmented on the basis of application. Currently, passenger cars represent the largest segment for tyres in the total tyre market in China followed by trucks. Mapping out the competitive landscape, the market is highly fragmented with hundreds of manufactures competing each other. Currently, Hangzhou Zhongce represents the largest player followed by Triangle Group, Double Coin Holdings, Shandong Linglong, Xingyuan Tyre Co. and Aeolus Tyre Co.
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