June 17, 2008

China’s Tires Export Industry Has Been Growing at Over 30 Percent Annually, and is Poised to Exceed US$7 Billion in 2008

Research and Markets (http://www.researchandmarkets.com/research/95da01/china_sourcing_rep) has announced the addition of the "China Sourcing Reports: Tires" report to their offering.

Designed primarily for passenger cars and light trucks, radials are the biggest category of tires in China, accounting for about 75 percent of output. The rest of production consists of bias models. Off-road tires, or those suitable for engineering, large mining, port and tunneling vehicles are an emerging line.

Tires are exported mostly as replacement parts to the aftermarket, which currently absorbs more than 60 percent of shipments. Nevertheless, there are some China-owned companies venturing into OEM-based production, usually of off-road tires, for engineering vehicles or other tire makers.

This updated report will guide you in this expanding industry, answering your questions such as:

-- Which companies are offering the best products at the best prices?

-- Which countries do exporters focus on?

-- Will export prices increase in coming months?

-- How are suppliers dealing with rising material and labor costs?

-- And much more...

What you'll get

-- In-depth profiles of 15 major suppliers with a comprehensive look at their product and pricing strategy, manufacturing and export capability, verified contact details, and more -- this information is not available anywhere else

-- Profile tables of 18 additional suppliers, with key information such as production capacities, export capabilities, primary export markets and main machinery

-- 77 full-color images that depict popular tire export models, complete with product descriptions, prices, minimum order requirements and delivery times

-- Results of the custom-designed supplier survey, which forecasts industry trends for the next 12 months

-- Verified supplier contact details, including names, e-mails, telephone numbers and websites of profiled makers

-- This report covers semi- and all-steel radials, and bias tires.

Executive Summary:

China's tire exports are poised to exceed US$7 billion in 2008 given the 30 percent growth rate the industry has been averaging over the past several years.

Export volume is rising at the same rapid pace and will continue to do so as companies strengthen their presence internationally, particularly in the US.

Despite the recall that hit the industry last year, the US remains the single-largest importer of China-made tires. In 2007, the country procured nearly 55 million tires worth US$2 billion, accounting for 38 percent of China's total exports that year.

Aside from growing export volume, rising prices are contributing to the increase in export sales.

Suppliers are shipping car, bus and truck tires at quotes that are between 10 and 20 percent higher than a year ago and additional upward adjustments are expected in coming months.

Locally owned tire suppliers will continue to export products to the aftermarket as replacement parts, leaving the OEM segment to foreign-invested companies or subsidiaries of top-tier international makers.

Aftermarket products are shipped on an OBM basis, allowing suppliers to promote their in-house brands overseas.

The following are some of the key developments we see in China's tires industry:

-- The high cost of materials and compliance with stricter safety standards will contribute heavily to the continuous upswing in prices. The reduction of the export tax rebate and the yuan's appreciation will eat into already shrinking margins, forcing suppliers to bring up prices by as much as 15 percent.

-- Despite rising quotes, makers are anticipating strong sales in the year ahead as they boost production of radial tires.

-- Expansion plans are rather conservative, with many suppliers boosting capacity by only 20 percent despite high utilization. Some companies will be establishing additional factories as they venture into new product lines.

-- A number of makers will be investing in automatic equipment and sophisticated management systems to help improve operations. Companies plan to decrease wastage, particularly in light of the high cost of rubber and other materials.

Key Topics Covered:





Companies Mentioned:

-- Beijing Capital Tire Co Ltd

-- Haohua South China (Guilin) Rubber Corp Ltd

-- Hunan Dasun Tyre Co Ltd

-- Qingdao Gren Group Co Ltd

-- Qingdao Lianyi Tyres Co Ltd

-- Qingdao Taifa Group Co Ltd

-- Rodeo International Trading Co Ltd

-- Shandong Linglong Rubber Co Ltd

-- Shandong Wanda Tyre Co Ltd

-- Shandong Yongtai Chemical Group

-- Sinotyre International Co Ltd

-- Tianjin Wanda Tire Co Ltd

-- Tire Group of Factories Ltd, Inc

-- Triangle Group Co Ltd

-- UF (Qingdao) International Trading Co Ltd

-- Hangzhou Hanma Tyre Co Ltd

-- Qingdao Eastern Industrial Group Co Ltd

-- Qingdao Fullrun Tyre Corp Ltd

-- Qingdao Maoxiang Rubber Co Ltd

-- Qingdao Quantong Industrial Co Ltd

-- Qingdao Shuanghe Tyre Co Ltd

-- Qingdao Tengjiang Tyre Co Ltd

-- Qingdao Tianchi Tyre Co Ltd

-- Qingdao Xinhai Tyre Co Ltd

-- Shandong Hongsheng Rubber Co Ltd

-- Shandong Province Sanli Tire Manufactured Co Ltd

-- Shandong Wanlitong Tyre Co Ltd

-- Shandong Yinbao Tyre Co Ltd

-- Shifeng Double-Star Tire Co Ltd

-- Sichuan Chuanxiang Group Co Ltd

-- Tianjinshi Top Tyre Co Ltd

-- Wendeng Sanfeng Tyre Co Ltd

-- Xingyuan Tyre Group Co Ltd

For more information visit http://www.researchandmarkets.com/research/95da01/china_sourcing_rep

Source: Global Sources