Among the 40 Chinese tire producers monitored by industry association, around 20% producers lost money in 2016.
Six out of 31 domestic tire companies suffered losses of 447 million yuan, while two out of nine foreign companies lost 135 million yuan.
Statistics show that the value of China’s tire output, export delivery, sales and profits dropped 14.62%, 16.52%, 15.37% and 22.22%, respectively.
In addition, six tire companies closed down for outdated capacity, environmental and cash flow issues; while tire projects of nine firms suspended constructing due to cash flow, environmental and land issues.
Looking backward, tire companies had lived an easy life, however, it will be a blessing for many tire companies to be able to survive current conditions.
But how long could they persist?
