Car tire: growing competition in the industry as a whole doing well on the (a)

In the global tire market, industry concentration higher than 50% market share in the previous three firmly grasp the tire manufacturer Bridgestone, Michelin, Goodyear China. And much higher than fourth in the mainland, the three companies have sales of more than 180 billion U.S. dollars, its advantage lies in the car, light truck radial tire market, as well as high-grade, high-speed level, such as radial tire market. 10 before the tire companies have 75% market share. In general from 2000 to start a slow decline in the process of proportion in 2006 reached 50.63 percent, lower than the 1997 level, the global tire market, increased competition, and we can see in low-end brand manufacturers are Steadily forward.

Competition in the domestic tire business growth, expand domestic tire companies in the top ten although the concentration of 60% -70%, but sales of the top ten of the great increase in 2006 sales of the top ten 2001 In the 3.7-fold. Greatly increase the size of the enterprise, the first enterprise in 2001 from sales of 2,220,000,000 yuan in 2006 to 11,110,000,000 yuan, the industry as a whole continued to improve profitability.

The degree of meridian tires is gradually increased, in 2006 Meridian rate of 67.12 percent, the product structure was further optimized, 2007-2008, China is expected to remain radial growth rate.

The overall economic situation of the industry

2006 sales for the tire industry 132,260,000,000 yuan, up 28.38 percent, the total profit of 3.95 billion yuan, 21.24 percent year-on-year decline. 2007 January-August sales of 108,400,000,000 yuan, up 31.37 percent, 47.7 percent of the total profit, up 38.59 percent.

Tire market demand forecast

Is expected in the next few years the overall development of China's tire industry is still to maintain a certain level of growth and the growth rate is estimated that about 15%, an increase of radial tire in about 20%, all-steel radial tire in about 35%, still a slight decline in bias tire.

Related listed companies

Aeolus shares: truck tires and tire industry leading engineering, the company expects earnings per share for 2007-2009 were 0.41 yuan, 0.65 yuan and 0.85 yuan.

Tire raw materials - Rubber Industry

Rubber industry in China's industrial economy is an important component of the rubber industry in 2006 industrial output value of 273,286,000,000 yuan, up 24.08 percent, accounting for 1.31 percent of GDP, the sales revenue 269,842,000,000 yuan, an increase of 26.85 percent, the total profit of 111.04 Billion decline in the growth rate of only 6.30 percent. Rubber chemicals as an important component of the importance of industrial production of raw materials, rubber industry for China's economic development and social progress made tremendous contributions to the.

Rubber is a polymer, is divided into natural rubber (Natural rubber referred to as NR), synthetic rubber (Synthetic rubber referred to as the SR) are two of the world rubber production, natural rubber accounts for about 43%, while the rest is synthetic rubber. Natural rubber tree is a tropical rain forest tree, planted in the geographical distribution of basic north-south latitude within 15 ℃, mainly in Southeast Asia, accounting for the world's natural rubber planting area of 90%. Many varieties of synthetic rubber, performance varied, in many occasions, can be replaced by even more than natural rubber. Synthetic rubber can be divided into general and special rubber rubber. General large amount of rubber, synthetic rubber such as styrene butadiene rubber production accounted for 60% to 70% of the tire (see Figure 1); followed by the butadiene rubber, accounting for 15%; in addition to isoamyl rubber, neoprene Ding sodium rubber, ethylene-propylene rubber, butyl rubber, and so on, they are common rubber. There are special rubber fluorine rubber, silicone rubber, polyurethane rubber, acrylic rubber, such as Thiokol, the less amount.

According to the China Synthetic Rubber Industry Association statistics, in 2006 the National synthetic rubber output reached 1,458,000 tons (in addition to isoamyl plastic, with six basic types of plastic and SBS), a production last year 125,000 tons, an increase of 9.4 percent; of which Ding Rubber-cis-butadiene rubber production increased a total of 117,000 tons, representing an increase of 94% of the total.

China Synthetic Rubber further enhance self-sufficiency. In 2006, domestic production of styrene butadiene rubber to continue to increase, an increase of 67,000 tons, an increase of 13.1 percent.

Butadiene rubber production for two consecutive years has changed the stagnant situation, an increase of 50,000 tons, an increase of 12.7 percent. Chloroprene rubber output last year increased 06,200 tons, an increase of 14.9 percent.

According to the China Petroleum and Chemical Industry Association show that in 2006 China's natural rubber output was 600,000 tons, synthetic rubber output of 1,845,200 tons, up 11.1 percent. 2007 Jan-Sept China's natural rubber output was 410,000 tons, up 9.3 percent, synthetic rubber continue to maintain steady growth, the cumulative output of 1,596,900 tons, up 13.71 percent. China's tire production is a big country, the consumption of large amount of plastic, the consumption of natural rubber still need to import two-thirds of the production, synthetic rubber consumption is about one-third of the total amount of synthetic rubber. The huge consumption of rubber so that our country has become the world's largest rubber importing countries, rubber prices directly affect the profits of downstream products.

On the whole, although the price of rubber in 2007 than 2006 has been reduced, due to the crude oil market prices from increase in a row since July, almost 100 U.S. dollars high, which will directly drive up the price of synthetic rubber, natural rubber to form the pressure on prices. As well as weather, political, economic and other factors, is expected to rubber prices in early 2008 will continue to remain high, there was a slowing down in the second half.

Tire industry profile

Tire product categories

Automobile tire is the most important components of one of its main role: to support the full weight of the vehicle, the vehicle load to bear; transmission of traction and braking torque to ensure the wheel and the road surface adhesion; and reduce the absorption of In a moving vehicle at the time of impact and shock to prevent auto parts by rattling and early damage to adapt to the high-speed vehicle performance and reduce road noise to ensure traffic safety, handling and stability, comfort and energy efficiency of the economy.

Tires and a large variety of different classifications made law, according to the different structures can be divided into bias and radial tires; by end-use can be divided into heavy-duty tires, with passenger car tires and tires with mine; into vehicles by car tires, Light truck tires, truck and bus tires, car tire engineering, industrial vehicle tires, aircraft tires, motorcycle tires, and so on; divided by the size of the giant tires (generally refers to the tire section width of the tire in more than 17in) Large tires (tire width in the section between the 10-17in), small and medium-sized tire (tire width in the section below 10in); according to the straight groove pattern into patterns, cross-channel patterns, vertical and horizontal groove pattern, the mud snow patterns, cross-country pattern And so on.

Bias ply tires are 35 ° angle with the center of the tread intersection, multi-layer stack. Characterized by the tread and sidewall strength, but more sidewall stiffness, poor comfort, since the high speed mobile and inter-ply friction, is not suitable for high speed. Bias tire is the tire market, the traditional varieties, with the development of the radial tire, the tire is gradually fade bias tire market, currently used in China's major works on the child.

Is the radial tire carcass ply in the bead from one to another of the bead cord center of the tread and large these lanes are arranged in 90 ° angle of the tire inflated. The radial structure of the main characteristics of the performance of the belt is the main force components. Belt with the cord into a larger matrix point of view (70-80) arranged matrix cord belt with the cord from three directions constitute a cross numerous triangular grid structure. As a result, fetal crown stiffness than bias tires high-rise than the bias ply tire less than the bias tire sidewall is soft, light. Tire wear-resistant than bias tires, fuel-efficient and has a good buffer performance and high-speed performance and so on.

Radial tire manufacturing technology and materials for the demanding, high manufacturing costs, but the economic benefits are very good. With the construction machinery market in recent years of rapid development, with its tires - always in short supply radial tire, and a few big foreign company to monopolize the production of tires.

Engineering child, child car and truck tires tire is the main product. Although the project only child domestic tire production in a small part of the project but the tire industry in the fetal position can not be ignored.

At present, the world's cars are basically achieved the meridian tires, car tire market in China and foreign joint ventures occupy about 70% of market share, especially the original tire market, almost monopolistic position as China's state-owned and private enterprises focused on In the field of replacement tires.

Truck tires to occupy one-fourth of the domestic tire production around the tire is an important sub-categories. China's 2001 truck tire production to 40,850,000 in 2006 for annual production of 87,850,000 with an average annual growth of 16.5 percent. In the Meriones tire of the trend of development, the load of the meridian of the rate of births in 2006, nearly 38% of the level of bias and truck tires, steel radial truck tire energy-saving, safe, comfortable, durable, is the development of the fetal load Trends in the strong market demand, all-steel radial truck will be the next hot investment.

Engineering is the exclusive tire products, is a major construction machinery parts and components, so the demand is very limited. Fetal growth in demand for engineering, mechanical engineering depends largely on the volume and maintain production, in particular the wheel of the extent and conditions of use. At present, the global engineering machinery used in tire package into 3, 7, into a replacement. In addition to the tire loader, the other to the general fetal mostly small and medium-sized projects. Engineering giant tire on the technical requirements are more stringent raw materials, used in the construction dump trucks and transport projects of mine used to open the dump mine car works for the child to use the main target. At present, China Construction Machinery ownership has more than 1,600,000 units, annual production of about 200,000 Taiwan, the wheel has reached the rate of 70% -80%. Is expected in 2010, China's construction machinery production up to more than 300,000, has a volume of 200 million units, used tires will be a corresponding increase of 30%.

With the domestic demand for engineering fetal growth, an increasing number of domestic tire manufacturer for the beginning of this market, China's tire production engineering enterprises from 10 to 30, in which the tire Guizhou, Henan Fengshen Large-scale production, China's tire production project sustained and rapid growth, has now become the world's largest tire producer of the project, the world's total production output of 50%. However, our work rate of meridian tires of a lower level of about 7%, in particular engineering giant radial tires, so far only has a production capacity of Shandong Province, on November 29, 2007, China's first all-steel radial engineering giant Shouguang success in the tire off the assembly line, filled a giant all-steel radial tire project in the field of blank, Shandong Yinbao Tire Group has also become the world's first five can produce such a tire company. Meridian tires of the project will be the future development direction.

Loader is the largest construction machinery in the production of the aircraft, China is now an annual output of 108,000 units, representing an increase of 17.5 percent year. At present, almost all of wheel loaders, the project is the most important births object to use. China's major manufacturers have a 25, matching the total tire-year estimated that more than 400,000. Now multi-loaders, large-scale trend is increasingly clear that the use of the tire also large-scale, broad-based and has very common phenomenon of ultra-wide base is also increasing, and there have been a flat rate of the 65-70 Low-profile tires. Domestic demand is expected in 2010 to 140,000 units, matching tires to be 600,000 or so annual growth rate was somewhat lower than now.

Forklift for construction machinery is another important models. 2006 World forklift total sales reached 824,095 units, up 11.72 percent, the Chinese forklift market for sales of 90,015 units, up 34.11 percent, of the total world sales of 10.92 percent, second only to the United States, the world's forklift market II. 2008 is expected to forklift sales growth of 30%.

Excavators for construction machinery in the main machinery, 2005 and 2006 global production of about 150,000 -20 million, Chinese production of 35,000 units, more than 90% for the crawler hydraulic press. At present, the domestic excavator to a joint venture enterprises, the existing capacity of up to 5 million units. Domestic demand in 2010 is estimated at 65,000 units, of which wheeled excavator is likely to expand 10% -15% in 6500-9500 to reach output of Taiwan, set to become another focus of tires, tires, but not the amount of more than 40,000, Specifications are mainly to small and medium-sized.

Bulldozers, graders dedicated strong demand for small, less than 10 Chinese enterprises, the annual output of Taiwan in 5200 and 1700 around Taiwan. "Five-Year Plan" period of rapid development, and 5 years respectively, the total supply of 2.6 million and 0.7 million units. "11th Five-Year Plan" the beginning of slowdown, domestic demand is expected in 2010 were 8000 and 2000, Taiwan Taiwan. These machines are tracked and wheeled the two types of minicomputer wheeled to a greater advantage, the use of tires are mostly small and medium-sized to China's annual demand of about 15,000 is expected in 2010 could reach more than 20,000.

Road and Road Machine share in the "Tenth Five-Year" during the domestic total output has reached 45,000 and 05,000 units, the current annual output of Taiwan's 7300 and 1000 Taiwan. Of which less than 200 tire roller, so smooth the use of special projects the number of births minimal. Multi-way share for the tire-production due to the minimal, negligible amount of tires.

Crane tire divided into crane, truck crane and three tower cranes, the first two tires are used. At present, China-year sales of around 1.2 million units, the production capacity of up to 15,000 units in 2010 is expected to demand of 1.3 million units, showing a trend of slow growth. Now 100 tons of tires and automotive types of cranes hoist a dominant position. Large crane (for ultra-high-rise building) from the biggest weight has reached 300 tons. China's annual production of truck crane for 10,800 units, supporting demand for tires in the more than 100,000, most of the minicomputer in the use of general-purpose truck tires or tire projects, such as 16 tons of used car hanging 11.00R20 truck tires, 30 12.00R20 ton vehicle with suspended or 12.00R24 tires.

Suspended the use of large-scale automobile tire project-specific, such as 50 tons of Mitsubishi Motors for hanging 14.00R24 tires, 70 tons of car for the hanging 16.00R25 tires. China's auto suspended 5 years 2001-2005, the total output reached 42,000 units, now annual capacity of 15,000 units in 2010 is expected to demand of 1.3 million units. Supporting the demand for tires in 2006 to 100,000 -12 10,000 is expected in 2010 will reach 120,000 10,000 -14. Crane tire production in China is only 200, 6 of the existing production in 2010 is expected to produce up to 1,000 units, was the rapid development of the situation.

Concrete mixer with the transport concrete mixer vehicles were wheeled in general, the use of tires for heavy-duty basic child. In recent years, large-scale concrete mixer vehicles have been stirred into a car. At present, these vehicles have been 18 domestic enterprises, will have an annual output of more than 10,000 Taiwan. These heavy-duty mixer by car modified vehicle to use for more than 10 tires, tires in need 100,000 from top to bottom, in 2010 is expected to reach more than 150,000.

Global Engineering child's small market, accounting for about tire 5.5 percent of total sales, in particular the huge global demand for tires will not work more than 50,000.

Meridian is the development direction of China's tire, the tire giant is no exception.

China's tire engineering, about 29.5 percent of export, of which 46% of the radial tire project for export.