Research and Markets has announced the addition of the “Research Report on China’s Tyre Industry, 2015-2019” report to their offering.
The rubber tyre output in China in 2014 totaled to 1.114 billion with year-on-year growth of 15.4%. After more than ten years’ efforts, the number of radial tyres has increased signifcantly. For instance, in 2000, only 32% of passenger cars had radial tyres but the figure rose to over 90% in 2014. The Policy of the Tyre Industry published by The Ministry of Industry and Information Technology of the People’s Republic of China requires that by 2015, all passenger cars shall be equipped with radial tyres, so do 85% of light trucks and 90% of trucks.
Ever since China entered WTO, its automobile industry has developed fast, which has driven the development of tyre industry. In 2014, China ranked first in automobile output and sales in the world: 23.7229 million cars were produced, increasing 7.3% year on year and 23.4919 million were sold, increasing 6.9% year on year. And China has been the world’s largest car producer and car market for six years since 2009. Its civil car ownership has keep rising too, reaching 154.47 million (9.72 million tricars and low-speed trucks included) by the end of 2014.
Although China has been the world’s largest auto market for six years since 2009, its car ownership per capita was only about 110 per thousand people in 2014, far less than 600-800 per thousand people in developed countries. China’s auto output and sales are expected to grow at an annual rate of over 5%. And as the car output and ownership increases, the growth rate of tyre market will exceed 15%. In the automobile tyre market as well as the service market, the demand for substitute tyres doubles that for accessory products and accounts for two thirds of the market share.
As China already has a complete industrial chain of tyre and its labor force is much lower than that in developed countries, its tyre industry still has a great advantage over that in other developing countries. And it is expected that in the near future, the domestic demand for tyre and its export will keep growing. Although China’s tyre industry faces many problems, it still has big potential of growth and good prospects for development due to Chinese government’s policy support.