China's tire industry is big but not strong and needs transformation and upgrading


U.S. media released the 2013 annual list of the world's top 75 tires. The number of Chinese companies listed on the list reached 26, accounting for 1/3 of the total. China is a world leader in tires. In 2013, China’s tire production reached an unprecedented 500 million, accounting for about one-fourth of the world’s total production. However, the annual sales of these 26 Chinese companies only added up to US$ 25.178 billion. The first ranked Bridgestone (28.575 billion U.S. dollars) and the second-ranked French Michelin (26.222 million U.S. dollars) have a large number. Obviously, although China is a big producer of tires, China's tire industry is still in a relatively weak position in the international tire market.

Problems in China's tire industry

The first is the low degree of industrial concentration. In recent years, the domestic tire industry has become increasingly competitive, with products mostly in low-end and mid-to-end markets, with a low level of industrial concentration, leading to chaotic competition. Overcapacity has led to a sharp drop in product prices; followed by a lack of core competitiveness. China's tire companies have few original technologies, most of which are imported technologies. Most of the products are concentrated in the low-end market, and the homogeneity is serious. The “Made in China” brand lacks influence in the international market and the proportion of OEM processing is relatively high. The export volume of self-owned brand tires is less than 8% of the national tire export volume. The third and most important point is that the quality of tire products needs to be improved. The improvement of China's tire quality level obviously lags behind the increase in scale. Some companies have not established a quality control system for the entire process, and export quality of tires has not been strictly controlled. Overseas returns have occurred from time to time.

Deputy National People's Congress deputy executive director of the State Rubber and Tyre Engineering Technology Research Center and chairman of the Software Control Co., Ltd. Yuan Zhongxue said in an interview with the media during the two sessions that China’s tire production reached an unprecedented 500 million in 2013, accounting for approximately the world’s total output. 1/4 of the world’s largest tire producer is well-deserved. However, such a big tire country, but no one belongs to its own national tire testing ground. It should be noted that the tire testing field is an important means for the development of new tire technology and new product experimental testing, and it is also an important way for a country to test and improve the level of tire technology and product quality. As there is no testing ground, China's standards for compulsory certification and testing of tires have hitherto been able to imitate foreign ones. This has constrained the development of tire product certification and testing standards and impeded China's ability to detect imported tire products, especially at Tire International. In terms of trade disputes, it is also difficult for China to have enough right to speak.

China's tire industry is significantly weak in the international environment

There is no international right to speak. This is indeed a sign of the weak performance of the Chinese tire industry and it is in a very difficult situation. On the one hand, many tire companies in China rely on export trade for their livelihood but are unfairly treated by exporting countries. Like the largest export market, the United States, from time to time, presents problems for Chinese companies, not anti-dumping investigations, or implementing restrictions on tariffs. Outside the United States, more than 10 countries, including Brazil and Argentina, have launched anti-dumping investigations or imposed dumping duties on tires originating in China. The EU Tire Labeling Act, which began in 2012, imposes more stringent requirements on the performance of imported tires. At present, 30% of China's passenger tires do not meet the minimum requirements for rolling resistance in the first phase of the EU, and 70% do not meet the minimum requirements for the second phase. On the other hand, those multinational tire giants have set up factories to produce and sell their products in China, occupying the high-end tire market. Only the Michelin family occupies 70% of the market share of China's radial tires, which makes the space for the survival of tire companies in China increasingly difficult. .

Greenization leads to industrial upgrading

At present, the major constraints encountered in the transformation of the tire industry in China are quality and brand, and in deep levels, technological innovation and internationalization are weak. At present, China's tire production is high and its consumption of resources is high. However, its output is not as good as that of world-class enterprises. The direction of development based on quantity and scale is in urgent need of change. Experts in related industries stated that enterprises should take a new road to industrialization, accelerate transformation and upgrading, and promote the transformation of development methods. They should focus on three key points: First, the "two types" (resource-saving and environment-friendly) enterprises, and second, "two "(Industrialization, information) integration, and the third is quality and efficiency.

Industry experts believe that: “The tire industry has entered the transformation and development period where technological innovation is the core, and it is objectively forced that the development of the industry must shift to relying on technological innovation to drive the development of the tire industry. First, we must resolutely eliminate backward production capacity and realize products. High-end; second, high-end equipment, the introduction of industrial robot technology, promote tire production automation, intelligent development; Third, the market is high-end, expand service services around product features, such as the development of fault diagnosis, remote consulting, online stores, mobile assembly repair New service forms, and development of value-added services."

Promoting the industrialization of green tires is not only to meet the implementation of the EU Tire Labeling Act, but also to drive the transformation and upgrading of the tire industry in China. At present, China's first "Green tire industry self-discipline" began trial on March 1, which is an indispensable part of China's construction of the world's rubber industry, whether it is to adapt to changes in the international market or achieve the goal of domestic energy-saving emission reduction It is imperative to say. At present, many domestic tire companies have entered or announced to enter the field of green tires, but if there is no quantitative standard, the proliferation of this concept does not help the healthy development of the industry, so the introduction of green tire standards is an urgent requirement for the tire industry.

In addition, the state should promote the transformation and upgrading of the industry with the rule of law and the rule of law. At present, there is no environmental protection law for tire products in China, which is also the main constraint factor for industrial transformation. Therefore, it is recommended that the state issue laws and regulations, enforce green tires, tubeless tires, retreaded tires, and other energy-saving and environmental-friendly tires within the government-owned resources, and recommend the development of green, recycled, low-carbon high-quality tires. At the same time, the government should play a leading role in guiding and demonstrating that public procurement should use green tires that are environmentally friendly and fuel-efficient, guide the concept of green consumption, and establish a force-reduction mechanism for green tire legislation, and raise the green tire self-discipline to national laws and regulations. This will increase the competitiveness of China's tire products in the international environment.

It has become a recognized fact that China’s tire industry is large but not strong. However, how to break through this situation has become an urgent and difficult problem to solve. Therefore, China's tire industry needs to integrate the industry, achieve transformation and upgrading, improve the ability of independent technological innovation, realize the industrialization of green tires, and at the same time, strengthen tire quality and safety control.


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