Tire giant prices have moved to the business focus of China

Following the Bridgestone, Goodyear, the French tire giant Michelin has also recently announced price increases. Michelin said that China decided to raise the full-line car and light truck replacement tire prices, which its three brands: Michelin, and back to the BF will be based on different product specifications, prices rose 3% to 7 %. The price increases will be in June 2008 into effect. All three major tire giant said that this round of price hikes of raw materials is subject to a substantial increase in the force, the enterprise can not rely on its own strength to absorb pressure on costs, but to take measures to adjust prices.

It is reported that due to raw material prices and the euro continued to appreciate against other currencies, Michelin's performance in the first quarter of this year's decline. For the performance of the year, Michelin has also lowered expectations. Analysis of the industry, the market price is the most frequent car tires, so far this year, tire manufacturers have adjusted the prices accordingly. February 1, Michelin for the United States and Mexico engineering and industrial tires tire prices, the average price increases ranging from 3%; Bridgestone since March's revised brand of car tires and tires card prices Price ranges from 3% to 5%. Hankook Tire announced plans in February, the Chinese market sold tires slightly raise the price of products, ranging from 5% to 8%.

With the corresponding prices, the recent World tire giant said it would have been the focus of the business moved to China to increase production, procurement, marketing, network input. The industry believes that the foreign giants in China to increase the coverage into the upstream and downstream industries, the overall situation is a type of attack strategy, which will have a domestic enterprise's overall development impact.

It is reported that more than half of the domestic tire market has been to occupy foreign-funded enterprises. In addition, foreign-invested firm to occupy a high-end domestic market, domestic enterprises with less than 10% of the profit margin compared to some of the profits of giant foreign investment of up to 20%, is twice the profits of domestic companies. In this year's Beijing Auto Show, the international giant tire after another heavy attack, in which, for the first time Michelin "Michelin tires safe driving simulator" into China, also announced that "2008 Michelin tire safety experience tour" Officially launched in China.

In order to further advance the market for high-end brands, Hankook Tire is also a strong line-up in order to participate in this year's Beijing auto show, not only on display this year's product strategy, but also for the first time the concept of a new release technical concept - "Kontrol Technology", the interpretation of its technology development Trends and products essential meaning. In advocating energy conservation and environmental protection, Hankook Tire has always been committed to leading innovation and technology-oriented auto and technology to drive sustainable development of the environment at the same time, truck and driving experience of harmony.

And echoed into the high-end program, Hankook services in the layout of the shop in the same area want to catch up from behind, "We plan to use a period of five years, that is, around 2013, China's T-STATION (car Chi-yi) services Shop 300 can be achieved. "

Bridgestone is environmentally friendly auto show in Beijing to launch a major theme. Listed in the second half of 2008 plans green tire B250 series of goods is also the first to debut. In this year's F1 (configuration parameters gallery) opening of the season, Bridgestone Group of the United FIA (International Automobile Federation) launched a global environmental enlightenment activities of the "Make Cars Green". In addition, Kumho Tire is also carrying its 3-to-date high-tech tire product exhibition, a comprehensive display of high-tech image of the tire business. At present, Kumho Tire has grown into China's car market share in the first of the tire manufacturers.

Analysis of the industry, through the World giant's investment in China's expansion can be seen not only foreign-funded production capacity, and increased procurement efforts and focus on opening up channels for the brand and services rooted in the sales channel. This is a production-based enterprises to service-oriented production enterprises in transition, so as to complete the overall style, three-dimensional distribution strategy.