The Development History Of China Tires
China has been in the position of the largest tire production and sales country in the world more than ten years in a row, the position is difficult to shake.
At the same time, China is also the largest tire exporter in the world. According to data released by the General Administration of Customs of China, in 2020, China’s new pneumatic rubber tires exports and exports amounted to 476.84 million and 13.279 billion U.S. dollars. This is not a small number.
Through all the above data, it is easy to see the importance of Chinese tires in the world. Chinese tires have won a large market in foreign countries with the advantage of good quality and low price. But surprisingly, the local market for Chinese-made tires is dominated by foreign countries products.
China Tires market is taken away
According to China Tire Business Network data, in China’s passenger car tire market, foreign tires took 65% of the market, while the market share of local Chinese brands is only 35%.
The “2021-2026 China Auto Tire Industry Market Deep Research and Development Forecast Report” published by the relevant research center also shows that most of China’s auto tire market has been pocketed by foreign brands such as Michelin, Dunlop and Bridgestone.
At present, globally renowned brands, like Michelin, Bridgestone, and Mabai tires, rank in the first echelon in the Chinese tire market, with Pirelli, Hantech, etc. coming in second. And Linglong tires, Chaoyang tires and other well-known brands made in China, were squeezed to the third echelon; the ranking of other small brands made in China are without comment.
Such a situation is obviously sad.
China is the world’s largest tire consumer market, as early as 2017, China’s automotive aftermarket has achieved trillion scale and tires is one of the major categories. But the big cake in China is caught by most foreign companies, which is saddening.
Low-end label of China-made tires is difficult to tear
This leads to the question, why are Chinese-made tires not popular? Is it because of poor quality?Not necessarily. In the early stages of development, the quality of made-in-China tires did have a certain gap with foreign products because of immature technology. But today, this situation has changed.
As early as 2016, CCTV Finance Channel tested the quality of tires in several countries in one episode, it has proved for made-in-China tires. During the test, after seven or eight impacts, the French tire skeleton broke, the U.S. tires leaked, but only the Chinese tires remained strong. In terms of quality,Chinese tires surpass European and American tires in all directions.
It can be seen that the quality of tires made in China is not worse than that of foreign countries. The test data of several institutions also show that high-quality tires made in China have already won foreign products in many key performance indexes.
But despite this, the low-end label that has been affixed to Chinese tires is difficult to tear off and many people’s awareness of Chinese tires is still stuck in the past.
The development of China’s tire industry is backward and it really rose rapidly when it was reformed. At that time, Chinese tire companies technology is indeed backward, in order to win the market,it can only rely on low-price.
And now, under the fierce competition, Chinese tires are still unable to get rid of the “low-price competition” quagmire. Moreover, in the labor-intensive tire industry, Chinese companies have the advantage of low labor costs, so it has the strength of low prices.
Low prices are often tied to the low end, which makes made-in-China tires unpopular with the Chinese. After all, for safety reasons, it is more reassuring to have a big brand of tires.
Therefore, despite the good quality and low price of made-in-China tires, but still not the rival of foreign brands.
How to get out of the woods
What can Chinese tires do to tear off the low price tag and make more people want to buy them? This requires efforts in many aspects.
First, it is definitely necessary to improve the technical strength.
In product quality, although the Chinese tires do not lose foreign products, the performance of other key indicators need to continue to improve, such as grip effect, fuel efficiency, silent experience, etc..
Only to improve the overall strength of the tire, to enhance the value of the product, is the fundamental way to win the favor of consumers.
At the same time, Chinese production should also strengthen innovation, with breakthrough technology to quickly enhance the competitiveness of their products.
Second, strengthen the brand publicity and enhance visibility.
Many Chinese-made tire brands have good strength, but because lack of marketing, visibility is almost non-existent. Many Chinese consumers simply do not know the excellent Chinese product brands.
On the contrary, Michelin has become a well-known tire brand with its Michelin restaurants, which are known worldwide. This is definitely a model of marketing.
Third, strengthen the layout of the channel.
In the layout of product sales channels, Chinese-made tire brands also have disadvantages. There are few tire stores and agents. On the contrary, foreign tire brands online layout is more perfect.
In this way, foreign tire brands in China is naturally not bad sales.
It is easy to see that Chinese tires in all aspects still can improve and need to continue to work hard.
Today, the Chinese tire industry is forming a new pattern,driven by environmental protection goals and under the pressure of structural overcapacity. I hope that in the new pattern, we can see more Chinese domestic brands.
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