China's tire industry is taking the old road of automobile development
"Many problems in the tire industry are also problems faced by the entire Chinese auto parts industry. Domestic auto parts and components are experiencing the old road of auto development, much like the auto industry 10 years ago."
On January 23, 2015, the “Analysis Forum on the Cross-Border Development of Automobiles and Tyres—Analysis of the Impact of the Automotive Market on the Tire Market in 2015†was held in Beijing. Zhao Fuquan, Dean of the Institute of Automotive Industry and Technology at Tsinghua University, said at the meeting.
Lack of understanding of tires in the automotive industry
Fu Yuwu, Chairman of the China Automobile Engineering Society, addressed the forum. He believes that tires, as an important safety component in automobiles, belong to the front and rear industry chain relations with automobiles, and the correlation between the two is extremely high. However, due to historical reasons and government management, the two industries are not closely linked. This forum has allowed many people in the auto and tire industry to sit together and jointly explore the market development and future trends of the two industries and work together to deal with the market crisis. This is of great significance to both industries.
In Zhao Fuquan's view, the automobile industry and the tire industry are one, not truly cross-border. The reason why the current barrier occurs is that, apart from industry management reasons, it is mainly due to the lack of in-depth understanding of tires in the automotive industry. In fact, in addition to ensuring the safety of automobiles, tires also play an important role in terms of economy and environmental protection.
"A lot of people think that the tires, four rubber wheels installed on the line. In fact, this knowledge is very large! Without the tires, the car will not move, good tires can make the car move better." Zhao Fuquan said.
According to experts at the meeting, in the process of formulating the “National VI†and “Beijing VI†emission standards for the next phase in China, the relevant departments are exploring the introduction of California standards. The role of tires in automotive environmental protection is self-evident.
The role of tires can not be underestimated in terms of reducing the fuel consumption of automobiles. Widening the tire to narrow the tire, by changing the tread pattern to control the friction coefficient, the fuel consumption will be greatly changed. However, the pattern changes, the friction coefficient changes, and driving performance changes.
"To find a balance among them is a very complicated technical issue. It is not that simple." The experts said.
Tire industry market is grim
In the high-level roundtable session of the forum, guest host Zhao Fuquan raised a question and invited several guests participating in the discussion to make predictions on the 2015 market starting from their respective company situations.
In 2014, the national auto production and sales volume grew only at a single digit, which made many people not optimistic about the 2015 auto market. However, Wang Xigao, chairman of Jiangling Motors Co., Ltd., excitedly told people on the scene that the company's operating income for the year increased by 22.3% year-on-year, and its car sales reached 276,000, an increase of nearly 20% year-on-year. He is still confident in the market prospects this year.
Compared to Wang Xigao's emboldenedness, the CEOs of tire companies do not seem so optimistic. Cong Yong, executive vice president of commercial vehicles for Triangle Tire Co., Ltd., said that the tire industry is facing a serious market problem this year, and all companies are faced with major difficulties in their development.
It is understood that since 2014, domestic tire companies are facing a very severe market situation. On the one hand, the domestic auto industry is gradually bidding up the windfall era, resulting in an increasingly fierce competition in the upstream tire industry and increasing pressure on the corporate market. On the other hand, the United States and other countries have implemented "double countervailing" (anti-subsidy anti-dumping) against Chinese tires, resulting in Nearly half of the domestic tire industry used for export has been severely suppressed in the international market.
Cong Yong said that the domestic tire industry is now almost "a mess", only the price dispute, there is no brand of points.
It is reported that after the previous management department of the tire industry was cancelled, the barrier to entry basically disappeared, resulting in disorderly industry investment and chaos. Compared with the automobile industry, the domestic tire industry currently lacks effective industry management and market supervision. "Weight is not heavy" brings vicious competition. The lag in brand construction has limited the sales of products, resulting in low-end, low-price tires in China and being vulnerable to high-end products from international brands.
Zhao Fuquan believes that the current problems faced by the Chinese tire industry are also common problems faced by the Chinese auto parts industry. This is somewhat similar to the path taken by the Chinese auto industry.
“At present, the most frequently cited issue is whether or not there is an opportunity for the company,†Zhao Fuquan said. “In the face of difficulties, companies must seriously reflect. Opportunities will always be there, but if it is your turn, it is not easy to say.â€
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