Auto tires are the main application market for rubber tires in China. Demand of tire market is closely related with auto sales. About 3/4 sales come from replacement market, highly related with the growth of auto holding capacity.
Influence of trade protection from America and other countries has decreased exported tire volume in recent years. In the meantime, the steady growth of Chinese auto sales also decreases tire sales’ growth, which even shows a negative data in the year 2015. Domestic tire factories began to construct overseas factories in 2015 to decreases impacts from trade protection, recovering exporting market gradually. The growth of domestic auto holding capacity also keeps higher than 10%, bringing the recovery of tire industry.
Passenger vehicle tires have the shortest replacement period, while medium-and-heavy truck has the longest one. Conservative prediction is based on the replacement coefficient of 1.25 tires per one passenger vehicle in one-year period, and 3 for one commercial vehicle. Lorry tires will have the replacement coefficient of 2 to 20 per year, while engineering tires will have the number from 2 to 3.
