China Tire Market, By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two Wheelers, Three Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (Online Distributors, Offline Distributors) Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: January 2022
  • Report ID: BWC22021
  • Available Format: PDF
  • Page: 118

Report Overview

China tire market is flourishing at a high rate owing to the expanding automobile production in the country. Additionally, the presence of leading tire OEMs and increasing disposable income and vehicle ownership are also pushing the market forward.

China Tire Market- Industry Trends & Forecast Report 2028

The China tire market was worth USD 29.0 billion in 2021 and is further projected to reach USD 44.8 billion by the year 2028, growing at the CAGR of 6.4% during the forecast period (2021-2028). China is home to one of the largest automotive manufacturing hubs in the world, which contributes to the growth of the tire market in the country. Further driving the market growth are the presence of tire OEMs and increasing disposable income and vehicle ownership. Furthermore, the flourishing cab service sector is anticipated to provide lucrative growth opportunities to the China tire market during the forecast period.

China Tire Market

Tires – A Brief Overview

A tire is a rubberized component of a vehicle that encloses the rim of the wheel externally. The main purpose of a tire is to protect the wheel rim from wear and tear and provide tractive force between the road surface and the vehicle. As tires are generally  made of rubber, they provide a flexible cushion that absorbs road imperfections and reduces vibrations. Rubber tires are made up of tread, jointless cap piles, beads, and other materials such as synthetic rubber, carbon black, and fabric.

China Tire Market Forecast and Trends

Growth Drivers

Increasing Automobile Production in China

China is the world's largest vehicle manufacturer, with over 21 million cars and 4.36 million commercial vehicles having been manufactured in 2019, according to the World Population Review. Further, based on data from Privacy Shield Framework, the Chinese government is also planning a 35-million-unit production expansion by 2025. The major “Big Four” domestic car manufacturers of China are also investing in expanding their production capacities, which is expected to boost tire demand in China in the coming years.

Technological Advancements and Launch of Smart Tires

The rapid technological advancements in tire technology are projected to offer favorable growth opportunities to the China tire market. Tire manufacturers in China are now innovating their products and introducing smart tires, which are laced with high-tech mechanisms, including IoT sensors. Smart tires use these sensors to generate crucial information about their surroundings, such as road temperature, tire pressure, and vehicle acceleration. The information can be used to determine the tire's condition and the safety of the drive. Such developments are expected to boost China tire market growth during the forecast period.

Restraints

High Penetration of Second-Hand and Counterfeit Tires

The increasing penetration of second-hand and counterfeit tires is emerging as a major restraining factor for the China tire market growth. Several reports have come up recently that tire suppliers are exporting used or counterfeit tires in the international market at lower costs. These tires not only cause loss of money but also put immense risk on the safety of the driver and passengers. The lack of stringent government regulations against these counterfeit tire sellers in China may restrict the tire market growth in the forecast period.

Impact of COVID-19 on China Tire Market

The unprecedented COVID-19 outbreak negatively impacted the growth of the China tire market. The COVID-19 virus, believed to have originated in China, halted most economic activity in the country, including tire and automobile manufacturing. Tire sales from both OEMs and for replacements were significantly reduced due to mobility restrictions, which resulted in huge losses for tire manufacturers. Furthermore, the demand for vehicles for private purposes also dropped significantly due to declining disposable income, which also negatively affected the market growth.

China Tire Market - By Design

Based on designs, the China tire market is segmented into radial and bias. The radial tire segment accounts for the largest market share and is also projected to witness the highest growth rate during the forecast period. This type of tire provides higher efficiency to vehicles, along with maximum comfort at higher vehicle speed.  Additionally, radial tires are also extremely effective at reducing fuel consumption due to their low rolling resistance. Moreover, they require less maintenance due to their steel bodies, which proves to be economical for vehicle owners in the long run.

China Tire Market - By Vehicle Type

Based on vehicles, the China tire market is grouped into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR) segments. Among these, the passenger cars segment accounts for the largest market share. Xinhua news reports that there are 256 million passenger cars on Chinese roads as of September 2021, along with 237 million private cars and minivans. The increasing disposable income and purchasing power of Chinese citizens is significantly boosting the demand for passenger cars, propelling market growth.

China Tire Market - By Distribution Channel

Based on distribution channels, China tire market is segmented into online distributors and offline distributors. The offline distributors segment accounted for the largest market share in 2021. OEMs already have partnerships with tire manufacturers to acquire supplies as their trusted dealers, which is a major factor in the offline distribution segment. However, the online distributors segment is projected to witness the highest growth rate during the forecast period. The increasing launch of websites and expanding e-commerce platforms, such as Alibaba, are significantly fueling the growth of the online distribution channel.

Competitive Landscape

The leading players of the China tire market are Tongli Tyre Co., Limited, Shanghai Huayi Group Corporation Limited, Triangle Tyre Co., Limited, ONYX Tyres, Zhongce Rubber Group Co., Limited., Wanli Tire, Aeolus Tyre Co. Limited, Prinx Chengshan Tire Company, Sailun Jinyu Group Co. Limited, Cheng Shin Rubber Co. Limited, and other prominent players.

The market is highly fragmented with the presence of numerous multinational and regional players. However, certain global players dominate the market. The company offers and launches a wide range of tires for different types of vehicles to grab a larger share in the market. They also focus on improving their distribution channels by offering their products through specialty stores as well as online sales channels. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, joint ventures, etc., is also prominent in this market.

Recent Development

  • In January 2022, ZC Rubber expanded its OE corporation with Hyundai Commercial Vehicle by supplying long-haul truck models with new patterns and sizes in China.

Scope of the Report:

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Billion
Product Service/Segmentation By Design, By Vehicle Type, By End-User, By Distribution Channel
Key Players Tongli Tyre Co., Limited, Shanghai Huayi Group Corporation Limited, Triangle Tyre Co., Limited, ONYX Tyres, Zhongce Rubber Group Co., Limited., Wanli Tire, Aeolus Tyre Co. Limited, Prinx Chengshan Tire Company, Sailun Jinyu Group Co. Limited, Cheng Shin Rubber Co. Limited, and other prominent players.

By Design

  • Radial
  • Bias

By Vehicle Types

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two-Wheelers
  • Three-Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channels

  • Online Distributors
  • Offline Distributors
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Increasing Automobile Production in China
        2. Technological Advancements and Launch Of Smart Tires
      2. Market Restraints
        1. High Penetration of Second-Hand and Counterfeit Tires
      3. Market Challenges
        1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
        1. Increasing Vehicle Ownership In China
        2. Expanding Online Sales Channels
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. China Tire Market Overview
    1. Market Size & Forecast by Value, 2018-2028
    2. Market Size and Forecast, By Segment
      1. By Design
        1. Radial
        2. Bias
      2. By Vehicle Type
        1. Passenger Cars
        2. Light Commercial Vehicles
        3. Medium and Heavy Commercial Vehicles
        4. Two Wheelers
        5. Three Wheelers
        6. Off-The-Road (OTR)
      3. By End-User
        1. OEM
        2. Replacements
      4. By Distribution Channel
        1. Online Distributors
        2. Offline Distributors
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on China Tire Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Tongli Tyre Co., LTD
    2. Shanghai Huayi Group Corporation Ltd.
    3. Triangle Tyre Co., Ltd
    4. ONYX Tyres
    5. Zhongce Rubber Group Co., Ltd.
    6. Wanli Tire
    7. Aelous Tyre Co. Ltd
    8. Prinx Chengshan Tire Company
    9. Sailun Jinyu Group Co. Ltd.
    10. Cheng Shin Rubber Co. Ltd.
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: China Tire Market Segmentation

 

Figure 2: China Tire Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2021

 

Figure 4: China Tire Market Size, By Value (USD Billion), 2018-2028

 

Figure 5: China Tire Market Share (%), By Design, By Value, 2018-2028

 

Figure 6: China Tire Market Share (%), By Vehicle Type, By Value, 2018-2028

 

Figure 7: China Tire Market Share (%), By End-User, By Value, 2018-2028

 

Figure 8: China Tire Market Share (%), By Distribution Channel, By Value, 2018-2028

 

List of Tables

 

Table 1: China Tire Market Size, By Design, By Value, (USD Billion), 2018-2028

 

Table 2: China Tire Market Size, By Vehicle Type, By Value, (USD Billion), 2018-2028

 

Table 3: China Tire Market Size, By End-User, By Value, (USD Billion), 2018-2028

 

Table 4: China Tire Market Size, By Distribution Channel, By Value (USD Billion), 2018-2028

 

Table 5: Tongli Tyre Co., LTD Financial Analysis

Table 6: Tongli Tyre Co., LTD Business Overview

Table 7: Shanghai Huayi Group Corporation Ltd. Financial Analysis

Table 8: Shanghai Huayi Group Corporation Ltd. Business Overview

Table 9: Triangle Tyre Co., Ltd Financial Analysis

Table 10: Triangle Tyre Co., Ltd Business Overview

Table 11: ONYX Tyres Financial Analysis

Table 12: ONYX Tyres Business Overview

Table 13: Zhongce Rubber Group Co., Ltd. Financial Analysis

Table 14: Zhongce Rubber Group Co., Ltd. Business Overview

Table 15: Wanli Tire Financial Analysis

Table 16: Wanli Tire Business Overview

Table 17: Aelous Tyre Co. Ltd Financial Analysis

Table 18: Aelous Tyre Co. Ltd Business Overview

Table 19: Prinx Chengshan Tire Company Financial Analysis

Table 20: Prinx Chengshan Tire Company Business Overview

Table 21: Sailun Jinyu Group Co. Ltd. Financial Analysis

Table 22: Sailun Jinyu Group Co. Ltd. Business Overview

Table 23: Cheng Shin Rubber Co. Ltd. Financial Analysis

Table 24: Cheng Shin Rubber Co. Ltd. Business Overview

Market Segmentation

By Design

  • Radial
  • Bias

By Vehicle Types

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two-Wheelers
  • Three-Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channels

  • Online Distributors
  • Offline Distributors
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