The tire industry is shifting production lines to developing countries and regions where labor costs are low and where there is room for market development. From 1999 to 2012, over 60 tire factories in Europe and the United States were shut down. At the same time, more than 60 new factories were established in Asia and other regions including China. This provides footnotes for foreign tire companies to expand their investments in China. High labor force in developed countries such as Europe and America The cost affects the competitiveness of products. Asia has low-quality, high-quality labor resources, and the raw materials and manufacturing equipment needed to produce tires have formed a scale. The focus and investment of the global tire industry are shifting to developing countries in Asia. The top ten tire manufacturers in the world, including Japan's Bridgestone, Michelin in France, and Goodyear's US tires, have all established production bases in China and increased their purchases in China. Statistics from the China Rubber Industry Association show that domestic tire production increased from 250 million in 2005 to 529 million in 2013, and China has become the largest tire producer and exporter. At present, China's tire industry presents a pattern of coexistence of foreign capital, joint ventures, and domestic domestic companies. The first and second largest camps are basically occupied by foreign tire companies. Multinational large-scale tire companies, with their solid capital and advanced technology, have an absolute advantage in the domestic market for passenger cars and light-duty radial tires. Foreign-funded enterprises account for about 70% of the market share of car tires, and local companies only share about 30%, and they are mainly concentrated in the replacement market, and their market share in the auxiliary market is very low. The global tire industry shifts to China and the global sourcing strategy implemented by multinational companies provides local tire manufacturers with good opportunities for development. However, despite the rapid growth in China’s tire exports in recent years, due to the uneven quality and quality of exported tires, and the relatively low prices, the United States, Brazil, Argentina, Colombia and some other countries and regions have launched “anti-dumping†investigations on Chinese tire products one after another. And related regions have introduced relevant trade protection policies. Due to rising labor costs and increasing trade barriers, some tire manufacturers have begun to shift production lines from China to Southeast Asia in recent years. Bridgestone has already invested in Thailand and Vietnam. Taiwan’s largest tire company, Zhengxin Tire, will also transfer the production of passenger cars and light truck tires from mainland China to factories in other countries and regions. Hankook Tire, the largest tire manufacturer in South Korea The groundwork was also started in 2011. Zhou Shijun, executive director of the China International Trade Association, told the reporter of the First Financial Daily that the industry shift is irreversible. Even if the United States frequently uses high punitive rates to keep Chinese-made tires out of doors, it will not be able to make US tires. The business benefits, tire manufacturing is difficult to return to the United States, but to Southeast Asia or other regions. Not only multinational companies, but also Chinese domestic tire backbone enterprises have adopted the "go global" strategy in the past two to three years. Shuangqin Group, Zhongce Rubber, Linglong Tire to Thailand, Delta Tire to Russia, Race Wheel to Vietnam, Ogori To build factories in Indonesia. The production of natural rubber in Thailand, Indonesia, and Malaysia accounts for more than 70% of the total rubber production in the world. The rubber industry in Vietnam and other countries is also growing. The largest raw material base, coupled with low labor costs, has attracted tire manufacturers from all over the world to set up factories in Southeast Asia. Although investing in factories in Southeast Asia is one of the effective ways for Chinese tire companies to avoid trade barriers, the unstable political situation in Southeast Asia is also plaguing tire companies. As a result of the Vietnam riots, the Saihong Co. Vietnam plant was temporarily suspended. Delicate tires also feared that the political instability in Thailand will bring a certain degree of risk to the business and affect the company's production and business activities in Thailand. Linglong Tire's 2013 Start-up Plan The Thailand's exquisite project with a total investment of US$689 million will have a trial production period of 2 million sets of semi-steel radial tires for the first phase of this year. Oil Palm High Hook Truck,4X4 Multi Purpose Truck,4X4 Hook Lift Truck,Palm Plantations Hooklift Truck FUZHOU RICHLUX TRADING CO.,LTD , https://www.richautoparts.com
Global automotive tire industry continues to shift