NEW YORK, June 12, 2019 /PRNewswire/ -- In 2018, global automobile market encountered its first downturn for the five years. Global automobile production edged down 1.7% on an annualized basis due to weak demand and political rivalries among great powers, of which passenger car declined by 4.1% and commercial vehicle rose 5.5%. The Chinese automobile market showed negative growth for the first time after 28 consecutive years of expansion, as a result of factors such as maturity of the market leaving smaller room to grow, the slowing Chinese economy and the expiration of some automobile promotion incentives. In the context of the depressed Chinese automobile market, its tire industry characterized the following in development in 2018:
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1. Market: In 2018, global tire output reached more than 2 billion units, worth RMB1.1 trillion and with a CAGR of about 2.4% between 2013 and 2018; Asia, Europe and North America collectively commanded 70% or so of the global market. As a key manufacturer which supplies nearly one-third of global tires, China made 648 million tires in 2018, at a pace of -0.8%, the first negative growth over a decade. The slight downtrend in output will expectedly continue to 2019 as the country's tire industry transforms for upgrading.
2. Segments: Passenger car tire market growth will depend largely on replacement demand from passenger car market which consumes over 80% tires and is about to be saturated. Commercial vehicle tire market will slow down due to the saturation of both OEM and replacement markets.
3. Pattern: Global tire industry pattern remains stable now that Bridgestone, Michelin, Goodyear and Jiangsu General Science Technology Co., Ltd. rule the roost; Chinese tire industry gets increasingly concentrated, which means already strong players tend to be stronger, for example, industry leaders like Triangle Tire, Linglong Tire and Hangzhou Zhongce Rubber and other listed companies, make up 80% of the total profits. In contrast, small and medium players have to struggle to survive and some are even in the red. In 2018, tire industry in China saw CR5 of over 30%, of which Linglong Tire and Hangzhou Zhongce Rubber played a leading role each with a market share of 8.5%.
4. Export: In recent years, China has faced a grim dilemma in tire export in the wake of China-US trade war and "anti-dumping and anti-subsidy" duties imposed by European Commission and the U.S. Department of Commerce on Chinese truck tires. China's tire exports were 287 million units in 2018, presenting a CAGR of 3.8% during 2008-2018, and will get better (the CAGR in China's tire exports to the United States stood at -30.1% from 2015 to 2018) as the United States removed its antidumping and countervailing duties on Chinese tires in May 2019.
5. Price: the rising prices of raw materials and more investment in environmental protection have pushed up production cost of tire manufacturers that had to raise their prices in recent two years. In early 2019, more than a dozen announced a 2%-5% increase.
6. Trend: China's tire industry is gearing towards high-end, brand reputation and green manufacturing in pursuit of development, through which Chinese tires have enjoyed a better brand image and a higher penetration that has risen from 20% ten years ago to 40% in replacement market and from 7% to 24% in OEM market.
Global and China Tire Industry Report, 2019-2025 highlights the following:
Global and China automobile markets (output, sales, etc.);
Global tire industry (the United States, Europe, etc.) (market size, enterprise pattern, etc.);
China tire industry (market size, output, export, competitive pattern, price, etc.);
Raw materials (natural rubber, synthetic rubber, carbon black, etc.) (market size, price, etc.);
28 global tire manufacturers (operation, output, sales channel, etc.).
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FAQs
As a key manufacturer which supplies nearly one-third of global tires, China made 648 million tires in 2018, at a pace of -0.8%, the first negative growth over a decade.
What is the future of the tire industry? ›
The future of the tire industry is leaning towards incorporating more advanced technologies, particularly with the rise of “Digital Tires.” These tires are equipped with sensors and innovative technology to provide real-time feedback on various parameters like wear, temperature, pressure, and road conditions.
What is the value of the global tire industry? ›
The size of the global automotive tire market is forecast to grow between 2022 and 2027. While the market was valued at some 126 billion U.S. dollars in 2022, it is expected to reach the value of over 176 billion U.S. dollars in 2027.
What is the outlook for the tire industry? ›
The global Tire market is projected to reach USD 192620 million by 2028 from an estimated USD 156880 million in 2022, at a CAGR of 3.5Percent during 2024 and 2028. Global core Norbornene manufacturers include Michelin, Bridgestone, GoodYear etc. The top 5 companies hold a share about 60Percent.
Are tires made in China any good? ›
A Chinese tire company would use the approved legal amount of material to make theirs 7-8 out 10. But that doesn't mean it's a bad quality tire. This tire might simply have a shorter lifespan than a more expensive brand. That's pretty much the main difference.
What tire brands are not made in China? ›
That amount is on the rise, as more factories are being constructed in America. BFGoodrich, Bridgestone, Continental, Cooper, Firestone, General, Goodyear, Hankook, Kelly, Kumho, Michelin, Mickey Thompson, Nexen, Nitto, Toyo, and Yokohama currently manufacture tires here in America.
What is the tire industry outlook for 2024? ›
WASHINGTON, March 5, 2024 - The U.S. Tire Manufacturers Association (USTMA) projects total U.S. tire shipments of 335.7 million units in 2024, compared to 331.9 million units in 2023 and 332.7 million units in 2019.
What is the future of global tires to 2026? ›
Amid the COVID-19 crisis, the global market for Tires estimated at 2.1 Trillion Units in the year 2022, is projected to reach a revised size of 2.5 Trillion Units by 2026, growing at a CAGR of 4.4% over the analysis period.
Who is the biggest maker of tires? ›
Michelin is the world's largest tire maker. And the company it keeps at the top of the list is familiar, too.
What country buys the most tires? ›
In 2022, the top importers of Rubber Tires were United States ($19B), Germany ($7.38B), France ($4.51B), Mexico ($3.67B), and Canada ($3.26B).
1. Michelin: Time-Tested Quality. Michelin is a top tire brand that has been around for over 100 years, and they've certainly earned their reputation for producing high-quality tires. Michelin tires are known for their durability, safety, and performance.
Where are most tires made in the world? ›
They researched where tires were made on the 72 cars they tested, and found 21 tire brands were built in 19 countries. While performance types are built around the globe, Consumer Reports found that 40% of the all-season tires were manufactured in the U.S., while only one of 23 winter tires were made here.
Is the tire industry growing? ›
The market size, measured by revenue, of the Tire Manufacturing industry was $24.4bn in 2023. What was the growth rate of the Tire Manufacturing industry in the US in 2023? The market size of the Tire Manufacturing industry increased 2.7% in 2023.
What tire company makes the most money? ›
The market
| Listed Company | Country | Average Sales 2018-2020 |
|---|
| Bridgestone Corp. (OTC:BRDCY) | Japan | $30,819 million |
| Group Michelin (OTC:MGDDY) | France | $26,209 million |
| Goodyear (NASDAQ:GT) | U.S. | $14,180 million |
| Continental (OTC:CTTA.Y) | Germany | $49,798 million |
2 more rowsIt's a potentially profitable business opportunity. After all, cars will always need tires, making it a relatively recession-proof industry. Like any other venture, starting a tire shop comes with a significant financial investment.
Are any tires made in America? ›
In fact, there are only two genuine American brands: Goodyear and Cooper. The largest foreign tire companies with plants in the US include Michelin, Pirelli, Continental, Bridgestone, and Yokohama.
Which brand of tires are made in China? ›
It's very common to find state-of-the-art European infrastructure in Chinese factories. The manufacturer behind the Westlake, Chaoyang, Arisun, Goodride, and Trazano brands. They have a 4.5-billion-dollar turnover, and their tyres are sold by more than 10,000 companies in 120 countries.
Which country produces the most tires? ›
In 2022, approximately 859.2 million tires were produced in China, increased from around 807.5 million tires in the previous year.
How can you tell if a tire is made in China? ›
After you've purchased the tire, you can identify the country of origin by referencing the plant code that is printed on the sidewall.
