China was the largest market for tires in Asia in 2012, with a major share in the global tire industry, followed by Japan, India and South Korea. Growing personal disposable incomes, inclining production of passenger cars and commercial vehicles, an increasing number of vehicles per capita and rise in the new product offerings are some of the factors for the growth of the China tire industry.
The tire market in China has witnessed a sharp growth in recent years on account of mounting sales of tires across a range of vehicles. Tire sales have been constructively affected by the production and sales of passenger cars, while the production of commercial vehicles has also augmented the revenues from the tires ata significant degree. The initiation of tire labeling standards by the EU has led to significant changes in the traditional distribution of tires by major manufacturing to the Europe. A major factor driving the tire industry in China has been the inclining ownership of vehicles. The tire market in China is comprised of large tire manufacturing entities, several medium sized tire manufacturers and a large number of small unorganized tire producing companies. China tire industry revenues have increased from USD 15,600.7 million in 2006 at a CAGR of 31.1% during 2006-2012.
According to the research report “China Tire Industry Outlook to 2017 – Increasing Automobile Ownership to Drive Demand for Tires” by Ken Research, the China tire market would grow at a considerable CAGR, exceeding USD 328,461 million by 2017 due to the major push from tire sales in the passenger car segment.
“While rising disposable incomes, soaring population, an increase in the vehicle ownership and demand from emerging countries will result in increased demand of tires in China, steep rise in the prices of several raw materials as well stringent inspections of Chinese tires by other countries, are expected to restrain the performance of tire manufacturing in China, according to the Research Analyst, Ken Research.
The report provides detailed overview on the tire market in China and helps the reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, tire companies and other stakeholders align their market centric strategies according to ongoing and expected trends in future
