Tire industry three to five years will be "feeding frenzy"

After the tire special protection case, the tire export was affected and the industry analysts analyzed -

“Originally, we have about 10,000 tires exported by manufacturers every month, but today there are only 4,000.” On November 5th, at the time of nearly 2 months in the tire special protection case, Mr. Yu, a salesman of a tire manufacturer in Jilin Province, told reporters. The impact on the export of their tire manufacturers is still quite obvious, but the domestic sales situation is much better than expected.

Mr. Yu said that due to the obstruction of tire exports, some tire manufacturers are facing consolidation. It is expected that the tire industry will experience a major reshuffle in 3-5 years, and manufacturers with strong strengths will merge weak manufacturers.

The domestic market unexpectedly

Mr. Yu said, “In fact, we had very poor sales expectations for this year last year, but I did not expect that the various preferential policies saved the tires. The tires are broadly divided into three categories: heavy tyres, light truck tyres and agricultural tyres. After the country introduced the tax exemption on fuel and the policy on loan purchases was relaxed, the sales of heavy heavy tyres have also increased substantially with the increase in the sales volume of heavy trucks. Another reason is that the country’s policy of supporting the automobile to the countryside is also The tire companies were saved, but the export part was very unsatisfactory, and many large-scale, high-value tire manufacturers were more affected."

Mr. Yu said that if there is no incentive policy to promote, it is difficult to imagine where these tires will be sold. After the September tire protection plan, many export tires are blocked. According to common sense, these tires that are converted into domestic sales will cause the market to fail. The economy, but these policies have increased demand, so this year's sales of tires are much better than expected. Compared with the same period last year, sales increased by 50% to 60%.

Three to five years of mergers and acquisitions

Mr. Yu’s statement was confirmed by the president of Changchun Tire Industry Association Sha. He told reporters that tire sales have obviously felt that tires are very hot this year, "some tire models, tire manufacturers in short supply, vendors need to wait in line."

However, Mr. Yu told the reporter that although the current tire market conditions are relatively stable, but with the tire impact of the special protection case to China's export of tires, the country has considered the introduction of the tire industry market access conditions, and control of tire exports. He introduced that at present, there are about 500-600 manufacturers of tires in China, and 300-400 in Shandong Province, accounting for about 60%, and there are still some in the south, but the proportion of Jilin Province is not large. However, the tire industry will be rectified within three to five years. It must be the entire industry, including Jilin Province.

“The future market condition of the tire industry is a competition between strengths. The soon-to-be-announced market entry conditions for the tire industry in the country have indicated that the threshold is to be improved, and that the tire manufacturers in the future will be transformed into joint-stock systems, with powerful and large-scale tire manufacturers merging. Weak and small tire manufacturers.” Mr. Yu told reporters that the integration of the tire industry takes about three to five years. If the country introduces a barrier to market access conditions for the tire industry, the number of tire manufacturers will decrease.

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