Overheated tyres have been overcapacity

Since 2009, China’s car sales have soared. According to the statistics of China Association of Automobile Manufacturers, in 2009, the sales volume of China's automobiles was 13.64 million, an increase of 46.15% year-on-year; from January to August 2010, the sales volume of China’s automobiles was 11.5825 million, an increase of 39.02% over the same period of last year. . It is expected that the total sales of automobiles in China will reach 17 million in the whole year of 2010.

Chang Yingzhi, a researcher in the chemical industry of China Investment Advisors, believes that the large increase in car sales will drive the market demand for tires. Domestic and foreign tire companies are seeing a boom in China's auto market, and tires have a large market for development. The investment in our country. According to relevant data, the annual investment budget of the world's major tire companies has exceeded 8 billion U.S. dollars. About 3 billion U.S. dollars have flowed into the Chinese market for the construction and expansion of tire projects.

At present, Bridgestone has announced that it will increase US$98 million in its Wuxi plant to expand its production capacity; Michelin plans to invest US$1 billion to build passenger and load-bearing tire plants in Shenyang, and plans to invest US$25 million in the repurchase of Michelin Shanghai. Shares of Warrior Tire Co., Ltd.; Toyo Tire plans to invest US$105 million to establish a sedan and light truck tire factory in Zhangjiagang; Hankook plans to invest US$82 million to expand its production capacity of cars and light truck tires in Jiaxing; Continental Tire plans to invest 185 million euros in a new construction in Anhui Sedan and Light Truck Tire Plant; Yokohama Tire Corp plans to invest 7 billion yen to expand the capacity of Hangzhou passenger car tire factory.

At the same time, as tire companies in foreign countries have increased investment in tires in China, domestic tire manufacturers are also investing more in large-scale expansion or new tire factories. The “2010-2015 China Tire Industry Investment Analysis and Prospect Forecast Report” released by the China Investment Advisor shows that the Double Star Group has launched an annual output of 1 million sets of all-steel radial tire projects; Jinyu Tire has an annual output of 10.5 million sets of semi-steel radial tire projects. Has also been partially put into production; Shandong Linglong has an annual output of 12 million sets of high-performance passenger car radial tires and other five projects have also started construction.

Chang Yongzhi believes that at present, as some companies have invested too much in tires, and most of the expansion and new production capacity is at a low level of repeated construction, China's tire market is already facing the plight of overcapacity. Coupled with the current intensified international trade friction, the export situation of tires is not optimistic. In the future, with the production of newly built or expanded capacity of tire companies at home and abroad, the competition in China's tire market will further intensify.