Structural Overcapacity China Tire Finding Way

After China’s tire production won the first crown in the world for five consecutive years, it encountered a tyre blowout accident. The “Kumho Tire Gate” incident that suddenly detonated the public was not so much an enterprise’s product quality crisis, but rather it was China's tire industry is facing a microcosm of development difficulties.

According to the latest statistics from Jiazhidao Auto Consultation, the largest industrial research team in China, monitoring of 42 tire manufacturers in China revealed that the overall profits of these 42 companies fell by 32.3% from January to February in 2011. . Of which domestic-funded enterprises fell by 26%, foreign-funded enterprises fell by 41%. During this period, 13 of the 32 domestic-funded enterprises suffered losses, and half of the 10 foreign-funded enterprises suffered losses.

At a meeting recently convened by the China Rubber Industry Association’s tire branch, industry insiders agreed that the Chinese tire industry is currently in a structural overcapacity situation. Participants pointed out that the problem of serious overcapacity of mid- to low-end tires, high production costs of enterprises, imperfect state quality standards, and excessive tariffs on imported rubber are constraining the healthy and sustainable development of China's tire industry.

“Looking for a breakthrough in the development bottleneck is the most pressing theme in the Chinese tire industry.” On the eve of the “2011 China Automotive Tire Industry Development Strategy Forum”, CEO of China Automotive Consultation Center Xu Jinquan proposed that when energy conservation and environmental protection have become the world’s automotive industry When the main line of industrial development, China's tires to seek industrial upgrading, out of the development difficulties, and vigorously promote the green industry should be the primary choice.

It is understood that in order to take the initiative, some well-known tire companies at home and abroad have already stepped up their green projects in China. In October 2010, Rhodia's total investment of 800 million yuan in white carbon projects, officially put into operation in Qingdao, China, it will become the world's largest tire anti-wear agent base. In June 2010, Shuangqin Group, a subsidiary of the Huayi Group, launched a commercial truck tire that received the top certification from the US Environmental Protection Agency (EPA) and became the representative of China following the United States, France, Japan, Germany, and South Korea. The first product in the "green tire" field.

It is reported that the government-related industry will be responsible for the 360 ​​Auto Industry Forum “2011 China Automotive Tire Industry Development Forum” organized by the China Automotive Consultation Center and organized by the China Automotive Industry Association’s alumni auto industry club in Hangzhou in early June. Experts from people and research institutes and high-level tire manufacturing companies at home and abroad will further focus on the current status and development prospects of China's “green tires” industry.

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