Foreign Tire Manufacturers Accounted For 70% Market Share In China, Supporting

2009 China car sales surge feast, did not stimulate domestic tire manufacturer's rapid growth

, but "fertilization" of the past several years in China, the international tire giants, some of the company's complete tire sales increased as much as 50%.

At present, Michelin, Goodyear, Hankook Tire and other international enterprises have occupied 70% of China's passenger vehicle matching the overwhelming share of the market.

A huge increase in sales

Tire Factory's business is divided into car matching (hereinafter referred to as "OEM") and the replacement tires in two parts.

"First Financial Daily" from France and South Korea Hankook Michelin's annual report the data to see the two companies in China last year, passenger cars (and light truck) tires OEM sales went up by 65% and 55%. Although none of Goodyear and Bridgestone public figures, but the industry is estimated that there are no small increase.

At present, China has become the only bright spot in foreign tire companies. Michelin's global operating profit in 2009 fell 6%, but because of the surge in China's auto demand, the Chinese market for the first time to replace the U.S. as the Michelin tires used by the world's largest market. Hankook Tire also told this newspaper that is available throughout 2009, "ups and downs," the word to describe. Its 2005 to 2008, the average OEM sales increased by more than 10%, but the strong sales momentum in 2009 have given them surprised.

China Rubber Industry Association Tire Branch of the Secretary-General Cai Weimin told reporters that in 2009 domestic 44 tire sales revenue grew by 7.1%, "included in the statistics of foreign companies and China's Taiwan enterprises, such as Michelin, Kumho Tire, Nanjing plant, Hankook and Taiwan are the new tires and so on, but there are more domestic-funded enterprises. "

He said the company's sales increased by more than 40 compared to previous years is normal, but passenger tire market growth compared to OEM, or a lot less.

OEM is a high degree of monopoly of foreign capital

Cai Weimin said the foreign tire companies have divided up the country for at least 70% of the passenger car OEM market. The figures provided by Hankook Tire, said their presence in the field 20% of the share.

This reporter has learned, F3, Excelle, Yuet move, Jetta, Santana, Accord, Elantra, QQ, Corolla and Camry and other top ten new cars sold last year, 90% with foreign tires.

CAI Wei-min analysis, a clear increase in car sales companies such as FAW-Volkswagen, Shanghai GM, Beijing Hyundai and Dongfeng Nissan are all joint-venture status, foreign shareholders are more willing to do with the overseas big tire package. Moreover, the Korea-Japan joint-venture auto company departments like to use their own country tires, even though these products has long been a "MadeinChina".

Mr. Yang is also a Goodyear dealer told this reporter that domestic tire actually much cheaper than overseas. Same diameter as the 15-inch tires, overseas enterprises OEM pricing is 400 yuan / Article expensive than the domestic one times more, but better-funded big-name high-profile tires, vehicle operators also believe that consumers still prefer big, so they inclined to the latter order.

He also said that domestic enterprises are the lack of marketing capabilities, "despite the Hankook is the world's seventh largest tire factory, but its vehicle plant in the OEM channel and even on public relations more than Michelin, Bridgestone and other companies, OEM share in recent years has become a lot. "Hankook is currently moving to do, not only for the modern Yuet matching tires, but also into the Audi A6L, Skoda Series, Touran, MA 6, the new Passat automobile plants and other non-Han University .

In fact, China's second choice, exquisite, triangle and southern China are exported to the U.S. tire quality has also been internationally recognized, and individual companies also do OEM for foreign brands, it is still difficult Prize joint-venture automobile plant importers. Shandong Linglong Rubber a manager, says that "Some automobile companies do not understand our products, which requires a process. Our goal is to take some of the first multi-domestic vehicle factory orders, and then slowly infiltrate into the automobile joint venture plant." The Another company insider, told reporters that the existing OEM customers have included Xiali, Beijing Foton, Chongqing Hongyan, FAW and so on.

Foreign Tire Manufacturers Accounted For 70% Market Share In China, Supporting

By: qoqo

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