Tire processing factory
Recently, Industrial Securities issued a special research report on the Chinese tire industry. The report pointed out that in the future, China's tire market demand will continue to grow rapidly, and replacement tire demand will be the biggest driving force for the tire market.
The report said that in the short term, the decline in raw material costs will give some advantageous companies an opportunity to improve trends. In the medium and long term, the trend of industry consolidation is obvious, and the degree of concentration will be further enhanced. Some of the dominant companies will benefit from the improvement of the industry structure. The tire industry has a major cyclical opportunity, in which environmental protection and energy consumption are integrated policy catalysts.
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Last year, China's auto production and sales exceeded 18 million vehicles, ranking first in the world. According to statistics, as of the end of August 2011, the number of motor vehicles in the country reached 219 million vehicles. Among them, the car ownership has reached 100 million. The striding progress of China's auto industry has directly driven the development of China's tire industry. By the end of 2010, there were more than 440 tire manufacturing companies in China. China produced 776.34 million rubber tire tires, a year-on-year increase of 19.8%. In the first half of 2011, the growth of the Chinese tire industry has slowed, but it is expected that the tire production in 2011 can still increase by 6%.
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