In the global tire industry landscape, companies from traditional automotive powerhouses such as Germany, France, Italy, Japan, and the United States have always held a dominant position. However, with the dynamics of the market changing, this structure is facing unprecedented challenges.
According to data released earlier this year by the German statistics website Statista, traditional giants such as Michelin, Bridgestone, and Goodyear still rank at the top of the list of the world's best-selling tire manufacturers. However, it is noteworthy that Italian company Pirelli, which is partly owned by ChemChina, and Chinese companies like Zhongce Rubber, have risen to enter the top ten globally.
At the same time, European tire manufacturing enterprises are facing multiple pressures. High energy costs, a downturn in automotive market sales, and issues with electric vehicle business are forcing these companies to make structural adjustments. For instance, Continental AG plans to reduce a total of 7,150 jobs by 2028, Michelin announced the closure of two factories in western France, and Goodyear plans to halt production at two factories in Germany.
Against this backdrop, the huge potential of the Chinese market has become the focus of European tire companies. In 2023, China sold over 30 million passenger cars, and the newly produced vehicles each year require about 130 million tires, almost the sum of the European and North American markets. In the automotive aftermarket, China also has tremendous potential.
To seize this opportunity, some European tire companies are turning to China to establish more factories. Michelin announced a capacity adjustment for its Shenyang factory, with a total investment of over 300 million yuan, gradually converting existing truck and bus tire capacity to passenger car tire capacity. Continental AG also expanded its tire factory in Hefei in June this year, planning to increase the factory's annual production capacity to 18 million passenger and commercial vehicle tires by 2027.
However, the rise of Chinese tire manufacturers is not just in the domestic market. As more and more Chinese car manufacturers enter European countries like Germany, Chinese tire manufacturers are also accelerating their presence in Europe. Chinese brands such as Zhongce Rubber, Giti Tire, Sailun Jinyu Tire, and Shandong Linglong Tire are gradually making a name for themselves, especially in the UK and German markets. Many consumers believe that Chinese brand tires have an advantage over European products in terms of cost-performance ratio.
To meet the challenge of Chinese brands, European companies are currently developing new products. Targeting the characteristics of electric vehicles, European companies are researching and developing new tires with performance features such as energy saving, noise reduction, and reduced resistance.
In the transformation of the global tire industry, the rise of Chinese companies and the adjustment of European companies will undoubtedly bring new vitality and opportunities to the market
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