Where should domestic tire companies go in the future?

As a supporting industry in the automotive industry, the main driving factors for the development of the tire industry are the development of the automotive industry and the transportation industry. In the past decade, the rapid development of the automobile industry and transportation industry in China has brought about rapid development of the tire industry.

At present, China’s annual tire production, which accounts for about one quarter of the world’s total tire production, has become the world’s largest tire manufacturing, exporting, and consuming country. However, the homogeneity of China's tire industry is more serious, manifesting itself as simple pursuit of volume growth and simple reproduction of production capacity, excessive reliance on capital, energy input, and expansion of scale by intensive labor force, extensive lag in productivity models, and product technology. The content and added value are low, and the medium and low-end production capacity is expanded too quickly. There is still a big gap between the industry and the international advanced level.

However, how easy is it to upgrade tires as a traditional industry? Although there are a large number of domestic enterprises, there are fewer independent heavyweight brands and the technology and technology are relatively backward. As a result, most of the market is in the hands of multinational corporations, and domestic enterprises can only take the low end. In order to seize the market, all enterprises have to rely heavily on product prices, resulting in increased disorderly competition and the industry entering a vicious cycle. How can the tires continue to develop in the future? We may start from the following directions.

1Industry integration From the perspective of industrial policy guidance, the introduction of a series of policies by the government has become an external driving force for industrial integration in the tire industry. For example, the "Tire Industry Policy" issued by the Ministry of Industry and Information Technology in September 2010 encourages horizontal mergers and acquisitions by domestic backbone enterprises to build large tires. Enterprise groups, vertical mergers and acquisitions to reduce raw material dependence.

2 Technology upgrades Technology upgrades are always the basis for the company's long-lasting youth. Technology upgrades can not only improve product competitiveness but also adapt to the requirements of new technology development. Now some domestic-funded enterprises with strong market competition awareness are increasing R&D investment and positive Carry out research and development of new products and new technologies.

3 Intelligent Manufacturing Transformation The tire industry is characterized by labor-intensive and high-intensity work. With the gradual increase of labor costs in China, the use of smart manufacturing transformation and upgrading of tire industry competitiveness, the promotion of modern information technology and manufacturing technology in-depth integration, production automation , intelligence and precision are already the trend.

4 Transformation to high-end markets At the international level, China’s tire exports are being blocked by trade barriers in various countries, and the low-cost road has come to an end. For the tire industry, which has always been proud of "Made in China," the advantages of the world's factories have apparently disappeared. It may be more appropriate today to take the high-end development path before standing tall in this tide.