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San Francisco, CA (PRWEB) December 29, 2012
With tire output estimated at 861.5 million units in 2012, China is the largest producer of tires in the world, followed by the United States and Japan. Revenue for the Tire Manufacturing industry in China has been growing at an average annualized rate of 24.1% to total $79.3 billion in 2012, says IBISWorld. With increased automobile ownership in China, demand for tires for new cars and replacement tires for existing vehicles increased strongly in the past five years. Road construction and growth in road transportation have also contributed to higher demand for tires.
IBISWorld estimates that the top four tire manufacturers account for 22.3% of total industry revenue in 2012. There are three groups of tire manufacturers in China. The first group includes the largest tire manufacturers in the world, such as Michelin, Goodyear and Bridgestone. They operate in the car tire and light truck tire markets, especially in the high-end radial car tire segment in the original equipment market. The second group comprises other foreign enterprises in China, such as Hankook, Kumho, GITI and some enterprises from Taiwan. They operate in the medium-class car and light truck tire markets. Finally, the third group includes domestic enterprises. Many large-scale domestic enterprises mainly produce truck tires, engineering tires and agricultural tires. The smaller domestic enterprises manufacture bias tires for export.
Large-scale enterprises in the Tire Manufacturing industry in China will continue to expand production capacity, importing advanced equipment and increasing investments in advertising and specialty stores. In the original equipment market, enterprises will widen product ranges to meet demand from automobile manufacturers, says IBISWorld. In the replacement tire market, investments in advertising and terminal sales channels will increase steadily due to the increasing number of brands, products and specialty stores.