As the price of the US tire market continues to rise, the prices of tires sold in the Chinese market have also risen. The reporter learned from Auto Parts City and some auto parts stores that major brand tire dealers have received notifications from manufacturers regarding tire price increases since April 2010, and the rate of increase has ranged from a few tens of dollars to a hundred dollars.
Moreover, at present, the collective price increase of tire companies may just be a head start. Some industry insiders expect that as the price of tire raw materials in 2010 will increase by 40% from last year, there may be room for further increase in tire prices.
Some people bluntly said: "This tire price increase is inextricably linked with the US special safeguard measures." But Ju Sili, general manager of Cooper Tire China, believes that China's 4 trillion investment in 2009 will bring the card to passenger cars. The increase in tire demand is the main reason for the collective “price increase†in the tire industry in the Chinese market.
“Because of the significant increase in sales of tires in 2009, many tire manufacturers are brewing to increase production capacity in 2010. Tires are a very profitable industry. Once the market fluctuates, it may lead to a reshuffle of the industry,†said Si Sili. He believes that in the future of reshuffle, only those manufacturers that have the courage to innovate can gain a foothold in the competition.
4 trillion investment boost tire prices
The blowout of the domestic tire market in 2009 caused the tire industry to “feverâ€. Affected by this, at the beginning of 2010, major tire manufacturers such as Michelin, Goodyear, and Bridgestone all raised their prices in China.
"The price increase of rubber futures is the direct reason for the increase in tire prices." Si Sili said: "Since the price of Natural Rubber in the international market has increased by about 20% year-on-year, the cost pressure on tire companies has increased, and profits have also been squeezed. , prices have become an inevitable trend."
In Si Sili's view, the reason why rubber futures prices have risen steadily, in addition to climate reasons lead to a decrease in rubber production, the increase in the domestic demand for truck tires, but also directly led to the rise in rubber prices and even tire prices.
“In 2009, the country’s 4 trillion investment directly accelerated the pace of domestic infrastructure, and also led to a significant increase in the sales and utilization rate of card and passenger cars.†Si Sili said: “Since the trucks and buses need one or a few months, Replaced once, so the sales volume of each tire manufacturer increased, the procurement of rubber also increased, the price of rubber rose.
As for the future trend of tire prices, Yu Sili judged that since the prices of natural rubber did not show signs of falling in the short term, the price of tires was also difficult to see a significant drop.
Tire industry may usher in shuffle
The rapid increase in tire sales and the increase in raw material prices have also caused many tire manufacturers to put production capacity expansion on the agenda. Since the beginning of 2010, many tire manufacturers have announced plans to increase production capacity.
Si Sili believes that this is a very dangerous industry signal. "Although the tire market will grow with the growth of the automotive market in the long term, but tires are a very small profit industry, so the capacity utilization is very important, if manufacturers blindly expand production in spite of actual, once the raw material prices fall, the price war will be Inevitably, some tire companies that are not strong enough may face the risk of being shuffled."
It is reported that following the September 2009 US-China Typhoon Special Protection Case, the Chinese tire industry has ushered in a new round of tests. Although the increase in domestic automobile sales in 2010 has continued to exert its influence on tires, the tire industry has experienced increasing pressure on exports, costs, and competition in the domestic market.
The data shows that there are currently more than 300 Chinese tire factories that have 3C certification in China, and there are only two in the United States where the automobile industry originated. At the same time, the production base of foreign tire companies is still shifting to China. The top 11 tyre manufacturers in the world, such as Bridgestone and Michelin, are currently investing in tire production in China. The total production capacity of radial tires is about 150 million, and the capacity of projects under construction and pending approval is also in the range of 50 million to 60 million. .
Guo Ai Securities researcher Chen Aihua said that although tire companies have already increased their selling prices, their price increases are far behind the rise in costs. Although sales are expected to increase in 2010, the industry’s profits are based on the current price of natural rubber. The year-on-year decline in total amount is a high-probability event.
Finding new market breakthroughs
Yu Sili believes that under many unfavorable conditions, tire manufacturers will actively seek changes through mergers and acquisitions in the industry and finding new exports, which will become a new round of competitiveness for many companies. Among these, the previously unrecognized replacement tire market may become a new sales growth point for the industry, because replacement tires can help owners to achieve greater performance improvements at lower conversion costs.
Yu Sili said that most of the current tire companies focus on the original tire market. However, with the increase in the number of car ownership in China, the market outlook for replacement tires has been very optimistic. He made a calculation for reporters. At present, the number of cars and cars is about 15 to 20 million. It is estimated that one car will replace 1.5 tires a year, and about 35 million to 40 million replacement tires will be produced in about one year. market.
It is precisely because of this that Cooper tires did not come into contact with the original tires after entering the Chinese market. Instead, they focused their resources on customers who replaced the tire market. As the only manufacturer of replacement tires in the world's top ten tire manufacturers, Cooper has maintained a sales growth rate much higher than the industry average through its own focus and more precise marketing.
In addition, Miao Sili believes that the introduction of more tire products with Chinese characteristics is also becoming an effective means for all manufacturers to increase market share. Therefore, in April this year, Cooper launched a high performance all-terrain off-road tire designed specifically for Chinese road conditions, called the “Skierâ€. It is reported that the tire can greatly improve the current status of urban SUV can only meet the needs of high-speed, urban road surface, to give the owner a stronger off-road experience.
The reporter recently learned from Goodyear China that Goodyear tires developed by Goodyear for Chinese consumer demand have also been listed. The tire is known as the quietest and most comfortable tire in the history of Goodyear. It adopts original silent tread design to minimize the noise of the tire on the road; at the same time, it conducts braking performance of a wetland in a third-party authority. In the test, Goodyear's Royale tires have a shorter wetland braking distance than comparable tires.
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