Michelin tires landed in China

Michelin has announced that the new Michelin Primacy 3 ST, the next-generation leading product for the comfort tire market in Asia and China, will officially enter the Chinese market.

Michelin launched new tires with improved comfort and quiet braking performance, designed to meet the rapidly growing demand for mid- to high-end comfort cars.

Frank Nord, Senior Vice President of Michelin (China) Investment Co., Ltd., said in an interview with the Economic Watch Network reporter that although the growth rate of the new car market in China has slowed down significantly since last year, thanks to the constant refresh of new car ownership, last year's domestic tires Market demand increased by 19%. If one considers the apparent gap between the number of new Chinese cars owned by thousands of people in China and overseas developed countries, he expects the domestic tire market demand will continue to grow at a double-digit rate in the coming years.

According to public information, Fanguoduo is responsible for Michelin's truck tire business in the Asia Pacific region from 1997 to 2001, including markets in China, Singapore, Malaysia, and Thailand. He returned to Europe after 2001.

Last summer, Fang Nord returned to China and formally assumed the position of the new senior vice president of Michelin China, specializing in China's passenger car tire business.

Economic Observer Online: In addition to establishing an Asian R&D center, what has Michelin done to improve the local road conditions in China?

Fang Nord: Primacy 3 is Michelin's global product line, but Primacy 3 ST came to Asia, especially in China, and also made mute adjustments. This product is produced in South America, Europe and China. However, no matter where it is produced, the quality of the product it brings is the same and it can meet ST's requirements.

Economic Observer Online: In the context of the European debt crisis, will Michelin tires divert more growth targets to emerging markets like China?

Fang Naode: The investment in Shenyang's new plant is huge, reaching US$1.5 billion. It is the largest investment project in our single Michelin project and will certainly continue to invest in the future. In China, the sales of new cars, including vehicle ownership, have risen sharply in recent years. Although there is a slight slowdown, the overall increase is still substantial. Based on these considerations, it is a natural consideration to shift the opportunities for growth from western markets to the eastern market, especially China. My conclusion is that at least within the last ten years, we cannot see that China will have a serious crisis like Europe, so we are still very optimistic about the Chinese market.

Economic Observer Online: What are your judgments on the growth of the domestic tire market this year?

Fang Norte: This year, vehicle sales have increased by 7% from the previous year, and tire demand has increased by 19% compared to last year. Therefore, the amount of vehicles we have accumulated in the past years in the market for replacement markets. The impact is still huge this year, and there will be room for growth. There is an indicator in China's tires or the entire vehicle industry - the ownership rate of thousands of people. This indicator, China's average of about 70 vehicles, that is, about 1000 people have about 70 cars. The level of developed countries is 600 thousand. Therefore, I expect that the demand for the tire market, car tire market, and replacement tire market in the next few years will still be double-digit growth.