Kumho aimed at Michelin

Michelin, Bridgestone, Goodyear brand to carve up the three major Chinese tire market, continued high-end five years after the world's ninth largest tire manufacturer - Korea Kumho Tire is trying to break the three pillars.

August 27, Kumho (China) Co., Ltd., general manager of tire sales gold handle vertebral said: "Kumho will be an annual 100,000,000 -2 billion U.S. dollars at the rate of investment in China, the goal is to reach production capacity two years later 21,000,000 , To become the first domestic production capacity of the tire business. "

Production capacity by the year -30% 20%

Kim vertebral handle that Kumho Tire in 2005 in China 4,000,000 on the basis of sales, in 2007 to more than 10,000,000, each year after more than 20% -30% growth rate. Bridgestone is currently in China has 4 tire plant; is a new / Maxxis International in China has a tire plant 3; Michelin, Hankook have 2 factories.

As the world's ninth largest tire manufacturer, Kumho Tire in 2009 in the hope that through their own production capacity will double the size of and among the world's top eight. In the first half of this year, 156,000,000 U.S. dollars of investment in Kumho Tire plant in Changchun in the third completed, as planned, Kumho Tire Factory in Changchun by 2008 to achieve an annual output of 3,150,000 cars with tire design capacity.

With the completion of the Changchun plant, in the current kumho China already has factories in Nanjing, Tianjin factory, the Changchun plant three production bases to China to meet the northeast, north and the south market. With the expansion of the market, Kumho expansion of investment at any time to do a good job of preparation.

"Ten years ago, the domestic tire market is tens of millions of the scale, but now it's hundreds of millions, changes in the market base to attract foreign-funded enterprises is the main reason for increasing input." Industry experts say.

According to domestic enterprises and foreign tire companies to disclose the number of tires in recent years, China's tire expansion project has more than 1,000,000,000 U.S. dollars / year, and in the last 4 years, state investment funds in the tire industry's nearly 35 million.

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 of the original tire sales 310,000,000 for 2005 to reduce the 14,000,000.

On the contrary in the Chinese market, China's tire production in 2006 reached 190,000,000, an increase of 11.4 percent. Tire industry sales 89,830,000,000 yuan, up 23.4 percent. Authorities have predicted that in 2010 China's total demand of about tire 300,000,000.

The industry said that compared with the United States, low-cost Chinese labor, there is no aging plant equipment, combined with difficult issues such as trade negotiations, this is the multinational tire companies in the United States gradually reduced its investments to increase their investment in China.

At present, Michelin is planning to tighten in Europe and North America expenses in order to transfer funds to China and other developing countries. U.S. local time on April 10, Goodyear chairman and chief executive officer Luoboteji root in the company's annual general meeting to disclose: in 2006 in China through the procurement of equipment and raw materials such as tires, saving the company about the cost of 35,000,000 U.S. dollars, The company plans to accelerate over the next two years to expand operations in China.

Michelin main marketing

In 2006 the world's top 75 tire shows that 75 of the total tire sales in 2005 an increase of 9% to about 101,000,000,000 U.S. dollars, of which Bridgestone, Michelin, Goodyear Big Three accounted for 53%.

World ranking of ninth in the Kumho Tire Although China has been supporting the market accounted for 18% of the share of the market share has been achieved in the first, but the sales ranking, nowhere near as Michelin, Bridgestone and other international giants . "Because of their popularity is higher than we." Kim told reporters vertebral handle.

Kumho Tire is currently 67% of the sales market has focused on the OEM market, the future kumho will further enhance the replacement market, the proportion of sales, plans to reach 50:50.

Survey shows that consumers buy cars, concerned about the performance of the tire brands and only 18.5 percent, and the replacement of tires when there were as high as 88.6 percent of consumers concerned about the tire brand and performance; to the end of 2005, 76 percent of consumers tire Brand awareness comes from advertising and events.

Michelin in 1973 for the first time sponsorship from F1, and made Monte Carlo Rally Championship. In the mid-1960s, Goodyear's occupation of the international market in order to further decided to sponsor the F1 Grand Prix.

Gold handle vertebral told reporters: "last year, Kumho Tire through a professional consulting firm targeted a different set of short and long-term strategy, Kumho Tire marketing goals through high-end brand, to become the market leader in high-end . "

At present, Kumho Tire has become the only Chinese Formula One race AFR (Asian Formula Renault) designated sponsor of the tires, but also the sponsor of the National 2000CC site of the Ford Championship team.

In addition, the evening of July 19 at the Shilla Hotel in South Korea, England and Manchester United club official Kumho Tire signed a contract to become Manchester United, which sponsors the club for four years.