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

In recent years, with the gradual liberalization of the domestic tire market, large multinational companies have been acquired through the way of large-scale domestic enterprises to enter the domestic market. Large multinational tire companies in China focused on investing in brand influence, a more obvious technological advantages of scale and more significant car tire market, which led to the domestic steel tire and a half of the minimum economic scale enterprises has increased to 5,000,000 units / year, the domestic-funded enterprises The capital has been difficult with the breakdown of the transnational corporations in the market place. At present, about 70% of the domestic passenger car tire production for the foreign-invested enterprises, multinational companies in the car tire market, accounted for absolute dominance, especially in fetal original market, the large multinational companies are involved in promoting the domestic tire industry concentration is on the rise.

High-end products from Europe and the United States to occupy well-known brand, mid-range products from South Korea to occupy at the same time reduce the cost of South Korean enterprises are also gradually lowered the price further, in such a situation, the Chinese enterprises in the future will be squeezed .

As the Chinese tire market in the future will maintain rapid growth in the short term Chinese enterprises feel the tire pressure will not be too obvious.

We can see that the concentration of the top ten although 60% -70%, but the top ten of sales has increased in 2006 in the top ten in sales in 2001 was 3.7 times. 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.

Due to the production of different data sources, inconsistent statistics, the output of tires have different statistics, there are tire and the Association of National Bureau of Statistics, National Bureau of Statistics of the total output of tires, including tire motorcycle tires Association of the Association include only units.

Tire Association statistics, China's tire production in 2006 was about 280,000,000 (excluding motorcycle tires), tire production to 177,000,000, of Meridian rate of 63.2 percent; all-steel radial tire production to 37,000,000, semi-steel Radial tire production to 140,000,000, respectively, year-on-year growth of 32% and 22%; tire export deliveries to 110,000,000, representing a year-on-year growth of 30%. China's huge cars and the continued growth of the automobile market, the domestic tire market will continue to be prosperous doomed. According to our projections, the year 2008, China's tire industry will continue to grow at a rate of 15%.

According to the National Bureau of Statistics, China's tire production in 2006 to 433,000,000 in 2007 from 1 to June domestic production of tires 248,000,000, an increase of 23.4 percent, of which radial 113,000,000, an increase of 38.2 percent. From the Customs statistics show that exports in the first half of the tire 66,729,000, an increase of 30.2% and exports of 2,680,000,000 U.S. dollars, up 36.3 percent.

We will use the data Tire Association of meridian tires, 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 continue to maintain a relatively high radial The growth rate. 2008 will enter a stable development stage.

Shandong to the old industrial base and private enterprises as well as opening up, occupying nearly 35% of output, foreign investment in the Yangtze River Delta by the rapid expansion of Shandong and beyond.

In addition, Tianjin, Guangdong, Fujian and other places has also become a hot spot for foreign investment, Yinchuan and Xinjiang by the geographic advantage of a certain production. In the radial tire, the geographical distribution is slightly different, with 23.3 percent of Jiangsu's market share to occupy the first, due to foreign-funded enterprises to produce car-based tire, so the Yangtze River Delta region occupies a nearly 40% of the production, Shandong occupy 19.61 % Of the production, and does not tire of the proportion of total output, compared with 2005 has increased 2.69 percentage point, we can see that domestic tire companies in the meridian of rising rates. Tire industry has a regional advantage.