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Market Investigation Report on China’s Tyre Industry, 2008

Market Investigation
Report on China’s Tyre
Http://www.shcri.com

Industry, 2008
China Research & Intelligence
 www.shcri.com

Market Investigation Report on China’s

Tyre Industry, 2008

Description

z Selling point
This report analyzes the current market situation and development features of China’s tyre

industry in detail. At the same time, the report analyzes China tyre industry from major

regions, operational features of leading manufacturers and their development trends.

The report shows the present situation of China tyre industry to investors and probes into

the industry trends, which provides investors high-valued references to seize the

investment opportunities.
z Summary of the report
Today, China has formed a complete tyre industry system. Since 2004, China has been the

largest tyre output country in the world. In 2007, the total tyre output of China reached 330

million, in which radial ply tires took up 70%.

The tyre industry is a traditional labor-intensive and skill-intensive industry. In European

countries and Japan, the salary takes high proportion of the total production cost (e.g.

33% for USA and 45% for Germany) which affects the competitive strength of products.

Relatively, Asia-Pacific Region obtains low-cost labor forces with high quality. Recently, the

global tyre industry has moved to the Asia-Pacific Region, in which China has become the

largest producer and exporter. 40%-45% of the total output in China is exported overseas.

In 2007, the volume of export of tyre in China reached 140 million. Both domestic-funded

and foreign-owned enterprises do processing trade. Processing with import material in

exporting enterprises takes up 60% of the production and some even reaches to 100%.

China has become a centre of principal rubber products like radial ply tyres, and the

tyre-exporting country with the greatest processing trade.

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 Market Investigation Report on China’s Tyre Industry, 2008

Through those years of development China has become the major tyre producer, but not

the most powerful one. In 2007, foreign-owned tyre producers shared 70% of the total tyre

output.

China became the center of Asia-Pacific tyre industry in the 1990s. Foreign capital and

private enterprises invested in China’s tyre industry. The top ten tyre manufacturers all set

up their factories in China. Bridgestone, for example, owned 3 factories in Shenyang,

Tianjin and Wuxi in China till 2005. It signed contracts on car tire projects with Guangdong

Daya Bay Economic and Technological Development Zone and invested 140 million USD. In

2005, Bridgestone took up 10% of the total market shares on China passenger car market.

It plans to increase the proportion to 30% by 2010.

Though China’s tyre industry acceleration, it still has to face the risks such as trade frictions,

higher production costs, the export tax rebate rate cut and ren-minbi revaluation, all of

which will cause a rollback of exports. All these need to be considered when investing.

Table of Contents

1 Analysis of the developing circumstances of China’s tyre industry, 2007-2008

1.1 Analysis of the economic environment and influence

1.1.1 National economy operating situation

1.1.2 Analysis of the operation of China’s auto industry

1.1.3 Analysis of upstream raw material supplies in the tyre industry

1.2 Analysis of the policies in the tyre industry

1.2.1 Summary of industry policy

1.2.2 Major industry criteria

1.2.3 Analysis and forecast on the industry policy trend

2 Analysis of the supply and demand of China’s tyre industry, 2007-2008

2.1 Analysis of the producing situation of China’s tyre industry

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2.1.1 Analysis of the total production of tyre industry

2.1.2 Analysis of the product structure of tyre industry

2.1.3 Analysis and forecast of productive trends

2.2 Analysis of the product consumer situation of China’s tyre industry

2.2.1 Analysis of the gross consumption of China’s tyre industry

2.2.2 Analysis of the consumptive structure of the tyre industry

2.2.3 Consumption forecast

2.3 Analysis of the import & export of China’s tyre industry

2.3.1 Import

2.3.2 Export

2.3.3 Importing & exporting situation forecast

2.4 Analysis of the investment in the tyre industry

2.4.1 Analysis of investing items in the local tyre industry

2.4.2 Analysis of international investment in China’s tyre industry

3 Analysis of the focal producing regions of China’s tyre industry, 2007

3.1 Analysis of the regional distributions of China’s tyre industry

3.1.1 Analysis of the features of the regional distributions of China’s tyre industry

3.1.2 Analysis of the regional operation of China’s tyre industry

3.2 Analysis of the tyre industry in Shandong province

3.2.1 Analysis of the overall situation of Shandong tyre industry, 2007

3.2.2 Forecast of the trends of Shandong tyre industry

3.3 Analysis of the tyre industry in Jiangsu province

3.3.1 Analysis of the overall situation of Jiangsu tyre industry, 2007

3.3.2 Forecast of the trends of Jiangsu tyre industry

3.4 Analysis of the tyre industry in Anhui province

3.4.1 Analysis of the overall situation of Anhui tyre industry, 2007

3.4.2 Forecast of the trends of Anhui tyre industry

3.5 Analysis of the tyre industry in Shanghai

3.5.1 Analysis of the overall situation of Shanghai tyre industry, 2007

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 Market Investigation Report on China’s Tyre Industry, 2008

3.5.2 Forecast of the trends of Shanghai tyre industry

3.6 Analysis of the tyre industry in Fujian province

3.6.1 Analysis of the overall situation of Fujian tyre industry, 2007

3.6.2 Forecast of the trends of Fujian tyre industry

4 Analysis of the major enterprises in China’s tyre industry (the ranking is unrelated to

the business strength)

4.1 Shanghai Tyre & Rubber Co., Ltd.

4.1.1 General situation

4.1.2 Analysis on the operational situation

4.1.3 Analysis on the development strategy

4.2 Guizhou Tyre Co., Ltd.

4.2.1 General situation

4.2.2 Analysis of the operational situation

4.2.3 Analysis of the development strategy

4.3 GITI Tire

4.3.1 General situation

4.3.2 Analysis of the operational situation

4.3.3 Analysis of the development strategy

4.4 Triangle Group

4.4.1 General situation

4.4.2 Analysis of the operational situation

4.4.3 Analysis of the development strategy

4.5 HANKOOK Tire

4.5.1 General situation

4.5.2 Analysis of the operational situation

4.5.3 Analysis of the development strategy

4.6 Shandong Chengshan Group Co., Ltd.

4.6.1 General situation

4.6.2 Analysis of the operational situation

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4.6.3 Analysis of the development strategy

4.7 Shandong Linglong Rubber Co., Ltd

4.7.1 General situation

4.7.2 Analysis of the operational situation

4.7.3 Analysis of the development strategy

4.8 Shandong Xishui Rubber Group

4.8.1 General situation

4.8.2 Analysis of the operational situation

4.8.3 Analysis of the development strategy

4.9 AEOLUS Tyre Co., Ltd.

4.9.1 General situation

4.9.2 Analysis of the operational situation

4.9.3 Analysis of the development strategy

4.10 Hangzhou ZhongCe Rubber Co., Ltd.

4.10.1 General situation

4.10.2 Analysis of the operational situation

4.10.3 Analysis of the development strategy

5 Analysis of investment & development of China’s tyre industry

5.1 Analysis of investment risks

5.1.1 Analysis of economy risks

5.1.2 Analysis of policy risks

5.1.3 Analysis of other risks

5.1.4 Recommendations for investment risk aversion

5.2 Analysis of investment opportunities

5.2.1 Opportunities in sub-sectors

5.2.2 Opportunities related to environmental protection

5.2.3 Analysis of other investment opportunities

5.3 Recommendation of investment & development

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 Market Investigation Report on China’s Tyre Industry, 2008

Selected Charts
Chart: General view on significant tyre standards issued by Chinese government

Chart: Range of the payments of claims about tyres

Chart: Comparisons with different tire tread technologies

Chart: Volume of sales of China’s tyre industry, 2004-2008

Chart: Growth rates of sales of China’s tyre industry, 2004-2008

Chart: Productive output of China’s automobile industry, 2004-2008

Chart: Sales of China’s tyre industry, 2004-2008

Chart: Sales of the tyre industry in different regions, 2007

Chart: Import volume of China’s tyre industry, 2004-2008

Chart: Export volume of China’s tyre industry, 2004-2008

Chart: China’s consumer awareness level of different tyre brands, 2007

Chart: Operational situation of Shanghai Tyre & Rubber Co., Ltd., 2007

Chart: Operational situation of Guizhou Tyre Co., Ltd.（A Qian Tyre）, 2007

Chart: Operational situation of GITI Tire, 2007

Chart: Operational situation of HANKOOK Tire, 2007

Companies mentioned

Local tyre businesses for reference

Shanghai Tyre & Rubber Co., Ltd.

Guizhou Tyre Co., Ltd.

GITI Tire

Triangle Group

HANKOOK Tire

Shandong Chengshan Group Co., Ltd.

Shandong Linglong Rubber Co., Ltd

International tyre businesses for reference

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1. Michelin
General situation
Analysis of the operational situation of Chinese Markets
Analysis of the development strategy of Chinese Markets

2. Bridgestone
General situation
Analysis of the operational situation of Chinese Markets
Analysis of the development strategy of Chinese Markets

3. Goodyear
General situation
Analysis of the operational situation of Chinese Markets
Analysis of the development strategy of Chinese Markets

4. Pirelli
General situation
Analysis of the operational situation of Chinese Markets
Analysis of the development strategy of Chinese Markets

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