China's Tire Industry 2011 Review and 2012 Outlook

National tire production in 2011 increased slightly

In 2011, China's tire industry was affected by the global economic slowdown. Tire exports faced a more complicated situation. Coupled with the unstable prices of raw materials such as rubber and the uncontrollability of costs, production and economic operations were very difficult. However, with the joint efforts of industry and enterprises, the overall economic performance in the year has maintained a steady growth.

It is predicted that in 2011, the country’s total tire production will reach 456 million, an increase of 2.93% over the previous year; among these, the production of radial tires will be 398 million, and the meridianization rate will be 87%. In the radial tires, the output of all-steel tires was 90.5 million, an increase of 3.4%; the output of semi-steel tires was 308 million, an increase of 6.9%; the production of bias tires was 58 million, a decrease of 14.5%. Analyze the completion of major economic indicators of 45 key enterprises. Output value increased by 20.8%, sales revenue increased by 21.2%, export delivery value increased by 28.2%, inventories increased by 35.3%, and profits decreased by 8.5%.

Last year, the main characteristics of the market - the national tire industry policy and investment orientation prompted the adjustment of the industrial structure, the main production companies to achieve large-scale production. Domestic steel radial tires have become a competitive product at home and abroad.

——The focus of the tire industry development has shifted from the past “scale, quantity, and speed” to “characteristics, quality, brand, and benefits” as the characteristics of the social economy and rational development of the industrial economy.

- Emphasis on technological innovation and brand cultivation. New progress has been made in product branding, corporate branding, and entrepreneur branding.

——Strict process requirements, improvement of product quality, and standardization of the marketing market order, the phenomenon of “not three packs” of tires in the domestic market has improved. Exports of tires to open up new markets have achieved results, and export tires have maintained moderate growth.

——The main raw and auxiliary materials for tires In addition to 80% dependence on natural rubber imports, synthetic rubber, special carbon black, additives and steel cord framework materials, etc., regardless of quantity and quality can basically meet the tire production needs. The rubber machinery such as internal mixers, calenders, molding machines, vulcanizers, and tire molds can not only meet the needs of domestic tire development, but also export abroad.

In 2011, tire industry enterprises have achieved good results despite overcoming many difficulties. However, there are widespread product homogeneity, excess low-end production capacity, insufficient capacity for independent innovation, extensive productivity, lagging industrial technology standards and process specifications, and industry concentration. Not a deep degree of contradictions and problems.

The outlook for 2012

According to the year-end report released by the China Automobile Market Index Institute, China's automobile market will be consolidating 18 million vehicles in 2011. In 2012, the auto market will return to normal growth of 6% to 8%, and it is expected that the sales volume will be around 20 million. Based on this, the tire branch initially predicted that the total tire volume in 2012 will be around 483 million, an increase of 5% to 7% over the previous year, of which the radial tire output will be around 432 million, an increase of 8% to 9%, and the radialization rate will be 89%. about.

In 2012, the tire industry enterprises should combine the actual conditions of the tire industry to maintain a steady and moderate development of tires, from the pursuit of quantity to focus on quality, to maintain the basic stability of the prices of rubber raw materials and tires, and made new breakthroughs in tires independent technological innovation. In this regard, the China Rubber Industry Association tire branch made the following recommendations:

First, in accordance with the access conditions set by the tire industry policy, effectively prevent blind investment and low-level redundant construction. Encourage the priority development of high-performance, high-value-added green tires such as electric vehicle tires, aviation tires, giant engineering tires, and agricultural tires.

The second is to encourage tire enterprise groups with competitive advantages to develop the tire industry, and guide large enterprises to integrate resources and brand advantages through mergers and acquisitions, and increase industrial concentration. Eliminating outdated production capacity, prohibiting the construction and expansion of biased tire production lines, eliminating production of 500,000 or less biased tires per year, and restricting the development of ordinary radial tires.

The third is to encourage the combination of production, learning, research and application, give full play to the leading role of the National Tire Engineering Technology R&D Center, accelerate the construction of a national-level integrated tire test site, and provide a platform for industrial enterprise systems to develop tire basic research and major technology projects. .

The fourth is to promote the coordinated development of related industries and tire industry; to support the development and application of green additives, special carbon black, steel cords, and new materials such as gutta percha; related companies such as rubber machinery and equipment companies must keep abreast of the development of tire companies. Demand, attention and grasp of the information dynamics of green tire manufacturing.

The fifth is to make full use of the fiscal and taxation (2011) No. 115 document to cancel the VAT preferential policies for retreading, encourage the recycling of retreaded tires and used tires, and promote the healthy development of China's tire retreading industry and recycling of used tires.

The sixth is to effectively enhance the independent innovation capability and market competitiveness of enterprises. China's tire industry already has a good foundation. Industry companies should be able to calm down, adhere to structural adjustment, adhere to independent innovation, and enhance domestic and foreign market competitiveness.

Seventh, establish a market-led operating model. By strengthening the construction of tire brands and implementing brand marketing, the product market has gradually shifted to the high end of the value chain. Companies should cooperate with global tire partners to import advanced technology information and integrate themselves into the company's own culture to form unique advantages for the company.

Eight is to organize the development of tire process management practices. At the same time, with the technical and economic committee to organize the development of China's green tire specifications, and the European Union tire labeling approach, promote the development of green tire industrialization.

Nine is to actively respond to tire "double reverse" cases. Judging from the cases that have taken place, both the issue of foreign trade barriers and the suppression of Chinese tires, as well as the issue of low access to Chinese tires and disorderly export orders. Therefore, it is recommended that the relevant state departments rectify the order of export trade, and that export units with poor product quality, low prices, and poor reputation should cancel their foreign trade operation rights; they must work together to respond to the “double reverse” cases, and must unite in a lawsuit; The export strategy must not only consolidate the old market but also open up new markets, and must not put eggs in a basket.

The tenth is to continue to call on the state to abolish the 20% high tariff rate of imports of natural rubber. The problem now is not only that tire companies cannot afford high tariffs of 20%, but that ASEAN imposes a 20% tariff on China's imports of natural rubber, so it imposes a 10% tariff on Chinese tires exported to ASEAN, and domestic tire companies suffer.