In contrast to the gloomy tire export market, in the first three quarters of this year, the domestic market was stable in general.
Paying Equal Attention to Domestic and Foreign Markets
To lower market risks, an increasing number of tire companies paid equal attention to both domestic and foreign markets.
Takes Wanli Tire as an example, the export value used to account for around 80% of its total sales value.
After the U.S. launched anti-dumping and anti-subsidy measures against tires from China, the company continued business transformation and upgrade through various adjustments, its overall sales didn’t shrink but grow 10.83% from the beginning of this year.
Exploiting domestic market has become one of Wanli’s measures in addressing China-U.S. trade conflict.
Lai Yanshan, general manager with Wanli Tire, said currently, export market of the company accounts for 50% of its overall sales volume; while domestic market accounting for 50%, including 30% from its cooperation with auto firms, and 20% from the domestic retail market.
Over nearly a decade’s development, China’s auto market boasts a huge consumer base. Tire is the most important accessary of automobile, therefore, domestic tire market has huge potential, said Lai.
China’s Auto Market Maintains Rapid Growth
China’s auto sales ranked the world’s No.1 for seven consecutive years since 2009. China’s auto market maintained rapid growth since the beginning of this year.
According to figures released by China Association of Automobile Manufactures, in the first 10 months of this year, China’s auto output and sales volume totaled 22.07 million and 22.02 million, respectively, up 13.79% and 13.83% year on year, and the growth rates were 13.77 percentage points and 12.32 percentage points higher than the same period of last year.
Rapid development of China’s auto market generates opportunities to domestic tire producers.
So far, Wanli Tire have provided tire products to 75 auto models from 21 automakers, including Dongfeng Citroen, Dongfeng Peugeot, FAW, and Trumpchi.
In August, Wanly Tire became the exclusive low rolling resistance tire provider of Citroen’s new Elysee and Peugeot 301 models for 2017.
