Current Location: Home > NEWS > Industry Update > Page

Blue book issued on competitiveness of tire enterprises

"The China Tire Enterprises International Competitiveness Blue Book" was released on May 15, during the first China International Tire Day Forum held in Guangrao, Shandong province. 

Based on the work of the Automotive Brand Competitiveness Research Group of the China Chamber of International Commerce (CCOIC), the report represents the very first attempt at research in China regard the current market competitiveness of tire companies, the risks and challenges they face, along with market trend analysis and proposals for further development.

Statistics from the Blue Book indicate the large scale of the industry. In 2018, China exported around 486 million new pneumatic rubber tires, accounting for about 60% of its total annual production; the value of these exports was more than 100 billion yuan.

In terms of export destinations, the U.S. and European markets account for more than 40% of China's passenger car tire exports and over 30% of its commercial vehicle tires exports. These figures basically meet the industry's projected export target.

The concept of "going abroad" has become a practical means for most tire enterprises in China to pursue further development and realize brand transition. The scale of exports is expected to remain at a relatively high-level for some time to come.

However, in his presentation of the Blue Book at the forum, Fan Peikang, chief editor of China Trade News and Leader of Automotive Brand Competitiveness Research Group of CCOIC, warned of come challenges on the horizon.

"China's tire enterprises still face a series of problems about their competitiveness in the global market. Problems such as low export prices, inadequate strategies regarding premium pricing, a lack of overseas brand identity and the resilience of overseas business system all impede exports," he said.

In response, the Blue Book puts forward several countermeasures and proposals including improving government macro regulation through tax cuts and fee reductions; intensifying market development in countries along the routes of the Belt and Road Initiatives (BRI); strengthening brand construction and development, as well as promoting international development of the automotive industry chain.

In an interview after the forum, Jia Jiangwei, senior vice-president of Car Research Consulting Beijing Co. and executive deputy-leader of Automotive Brand Competitiveness Research Group of CCOIC commented: "With the further implementation of BRI and international industrial-capacity cooperation, an increasing number of tire enterprises in China will benefit from an improved global business environment.

"Our research group will continue focusing on the 'going abroad' drive of China's tire industry, carrying out more targeted research work based on the Blue Book, in order to help tire enterprises in China to enhance their core competitiveness and build up the confidence of both the enterprises and the industry, meanwhile keep strengthening the export scale."

China.org.cn