Why Chinese tires "gallop" overseas markets
Dec 17, 2024
Since last year, the global tire industry has witnessed a large area of recovery, and many Chinese tire companies have been overwhelmed with orders. This year, China's rubber tire exports continue to continue the good trend - from January to April, the cumulative export volume reached 2.71 million tons, an increase of 11.8%; Exports amounted to 47.461 billion yuan, up 20.4 percent year on year.
While embracing opportunities, the road to the sea of Chinese tires is also facing risk challenges. Industry insiders said that tire companies need to further practice internal skills, but also look forward to the relevant departments to further support and guide the high-quality development of the industry, for enterprises to better expand the international market escort.
Douin helps to open up the market
Why do Chinese tires accelerate "galloping" overseas markets? In the view of practitioners, in recent years, Chinese tire enterprises have made breakthroughs in technological innovation, improved product quality and performance, superimposed China has a complete tire industry chain and other factors, tire products have formed a strong international market competitiveness.
"For a long time, we have been committed to transforming scientific and technological innovation achievements into new quality productivity." Lu Chunxiao, assistant chairman of Shandong Huasheng Rubber Group, introduced to the International Business Daily reporter, "At present, we are accelerating the adjustment of product structure, promote the deep integration of the industrial chain and innovation chain, especially the new products such as special tires for new energy vehicles, silent cotton tires, self-repairing tires and high-quality long-mileage tires have been listed, and further expand the company's high-end product line." At the same time, the preparatory work for the state-level advanced rubber materials and high-end green tire Innovation Research Institute with a total investment of 320 million yuan has been completed, and the 12,000 square meter experimental inspection and test center building will be put into use by the end of June."
Advanced technology and outstanding performance is the confidence of Huasheng Rubber Group to develop overseas markets. According to the relevant person in charge of Shandong Hongsheng Rubber Technology Co., LTD., the PCR factory of Huasheng Rubber Group, the products produced by the company are exported to more than 170 countries and regions around the world. While strengthening scientific and technological innovation, enterprises also actively participate in all kinds of professional exhibitions, and start brand awareness. Since the second half of 2023, the company has participated in Shanghai Frankfurt International Auto Parts Exhibition Shenzhen Special exhibition, Singapore Tire exhibition, Canton Fair and other exhibitions, not only harvested orders from old customers, but also met more than 50 new customers. Compared with the same period last year, the company's foreign trade orders increased by about 30%.
After Lu Chunxiao, the rapid development of new foreign trade formats such as cross-border e-commerce and overseas warehouse creates broader sales channels for Chinese tire enterprises, which helps enterprises to expand their international market share. Wang Zhibo, foreign trade manager of Far new Tire Co., LTD., also said that with an overseas warehouse integrating exhibition and sales, it is equivalent to moving the product exhibition hall to the door of overseas merchants, "Our tire products go to sea on the express train."
In addition, many local commercial authorities have also given strong support to the export of local tire enterprises. In Guangrao, Shandong Province, the "tire capital", in order to guide enterprises to explore diversified international markets, Guangrao County Bureau of Commerce supports enterprises to participate in professional exhibitions such as Singapore Tire Exhibition and Dubai Auto Parts Tire Exhibition, and exhibitors have gained full harvest.
Take multiple measures to meet the challenges
"Frankly speaking, Chinese tire products do face challenges in the export process." A person in charge of a tire company told reporters that at present, Southeast Asian countries have become an important tire production place in the world, and its low-cost advantage has brought certain competitive pressure to China's tire industry.
Taking Cambodia as an example, the data show that from January to May this year, Cambodia's tire export volume reached 308 million US dollars, an increase of 204% over the same period last year's 101 million US dollars. "Opening up new markets for automotive tire products is one of our measures to expand exports," said Ban Suk Vijay, a spokesman for Cambodia's Ministry of Commerce. "The tire industry is one of the emerging industries in Cambodia."
In addition to the fierce international market competition, international trade friction and other unfavorable factors have also caused a certain pressure on the export of tire enterprises. The person in charge of the above enterprises said that the trade barriers set by European and American countries, in particular, sometimes also form a certain restriction on the export of Chinese tire products.
Despite the pressure, the Chinese tire industry remains confident. In order to cope with the above unfavorable factors, many Chinese enterprises have embarked on the road of overseas layout. By the end of 2023, 12 Chinese tire companies have established 25 factories overseas. Among them, as one of the earliest Chinese tire companies to invest overseas to build factories, Cylun Group has carried out layout in Vietnam, Cambodia and other places. In October 2023, its factory in Cambodia started new investment, with an annual output of 6 million semi-steel radial tires. At the beginning of this year, Saite invested an additional 770 million yuan to double its production capacity to 12 million units.
At the same time, tire companies are also full of expectations for the introduction of relevant policies and measures. Lu said it is hoped that relevant departments can provide more policy guidance and support to enterprises to help them better upgrade and innovate in technology, so as to improve product quality and international competitiveness.