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

Tire costs

Rubber tires are the main costs, the total cost of the tire about 50%. This shows fluctuations in the price of rubber tires on the impact of higher costs. Among all-steel radial and bias tire rubber consumption by important than the larger, semi-steel radial tire and consumption of synthetic rubber important than the relatively large number.

Global tire market: the top three industries firmly hold up half the market

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, 10 before the tire companies have 75% market share.

Belonging to the tire industry technology, capital, labor-intensive industry, with more obvious advantages of scale. High-end brand products are the world's top 10 tire companies to grasp.

The Big Three's market share in 2004 reached a high point 69.2 percent, but the overall look from the beginning of 2000 is a slow process of decline, the proportion in 2006 reached 50.63 percent, lower than the 1997 level, the global tire market Competition, and we can see in low-end brand manufacturers are steadily forward.

Domestic status quo: the global tire business for Chinese market

At present, the domestic tire market is divided into three main square. The first Michelin is Phalanx, Bridgestone, Goodyear, such as represented by joint ventures or wholly-owned, its advantage lies in the car, light truck radial tire market, as well as high-grade, high-speed level, such as radial tire market; the second square Hankook is based, Kumho, the best-represented, such as joint ventures or wholly-owned, its advantage lies in the mid-range car, light truck radial tire market; in the third to phalanx of domestic enterprises, their competitive edge is still confined to low - Occupied part of the market price of the main tire production and consumption countries, the United States tire market slump, according to the American Chamber of Commerce rubber production data released in 2006 in the United States tire sales in 2005 fell 4.5 percent, and a variety of specifications as the original tire sales 310,000,000 Than in 2005 to reduce the 14,000,000. Due to the high U.S. labor costs, an aging plant equipment, trade negotiations and joint problems and other reasons, cross-tire business is gradually reducing its investment in the United States or the closure of the factory; and the Chinese tire market integrity and prosperity stage, according to the National Bureau of Statistics data show that in 2006 China's tire production reached 433,000,000, an increase of 15% comes on the heels of the United States, Japan, after the world's third largest tire producer, but our tire technology, quality and brand is still unable to compete with the United States, Japan and other powers against the tire.

China's tire industry's technological level is not high, consumption, in addition to this and our product mix, that is, the proportion of large truck tires, we have the same specifications than foreign birth weight. It is reported that, according to the tire material consumption terms, the level of 16 domestic 11.00-20 tires are standard weight 48.8 kg, while the Japanese Bridgestone tires with different specifications weight 44.3 kg; China-made cars 185/SR14 fetal weight 10 ± 1.2 kg, Japan plant an average of three 9 ± 0.3 kg, France Michelin 225/65R15 tires cars in China than in the same fetal light 3.2 kilograms.

China's tire market, attracted strong demand for foreign-funded enterprises to enter, so far, foreign investment in China has more than 20 tire companies, foreign-funded enterprises to enter Chinese market through the initial acquisition or joint venture tire small domestic enterprises, the development of the current To invest and build factories, mainly through the expansion of the scale, with its own brand of dominant position to compete in the world top 10 transnational enterprises tires, Bridgestone, Michelin, Goodyear, Hankook, and so settled in China 9, And recently, the only continent not to set up factories in Germany also announced its intention to invest and build factories in China. 80% of the domestic passenger car tire by foreign-funded enterprises to occupy, foreign-funded enterprises in the car tire market share position of absolute superiority, and, firmly foreign-funded enterprises occupy the domestic high-end market, domestic enterprises with less than 10% of the profit margin, Some foreign-funded enterprises profit margins as high as 20%, is twice the profits of domestic companies.

China's tire manufacturers generally smaller scale, in 2006 the first sales of the good sales of Group Michelin tire less than 8% at present, China's tire production capacity is only an average of 400,000 / year, production The ability to 1,000,000 / year, only 15 large enterprises, more than 3,000,000 / 3 years there. At present, China has more than 370 tire manufacturers, it is understood that only the tires in Shandong Province has hundreds of small businesses, the annual output of 500,000 small manufacturers account for 70%. Tire industry needs a strong M & A integration.

2006 tires in the world top 75, there were 21 Chinese companies short-listed, the 75 finalists to become the largest regional market (of which 5 finalists in the Taiwan area), 21 tire business sales of more than 7,300,000,000 U.S. dollars, exceeding the global tire sales 7%, although in 2005, compared with a decrease of 2, but the 16 Chinese mainland enterprises, the total sales income of 5,250,000,000 U.S. dollars, representing 7.7% growth in 2005.

At present, China is still in the tire growth of investment, whether domestic or foreign-funded enterprises are optimistic about the market and capital expansion projects, this process will continue for several years. By 2010, China's highways will reach 55,000 km, auto production will reach 10,000,000, the cars will increase to 62,000,000. According to China's highways, automobiles, transportation development plan, the parties concerned predict that by 2010, China's total demand of about tire 300,000,000, of which 210,000,000 radial tire, the meridian of the rate of 70%.