Tire industry will usher in reshuffle after “low tide†Following the "U.S. Special Protection Case" against China's tires in September last year, the Chinese tire industry has ushered in a new round of tests. Although the increase in domestic car sales this year has continued to affect the use of tires, the tire industry's pressure on exports, costs, and competition in the domestic market has gradually increased. Another industry insider predicts, "Although sales this year are expected to increase, but with the current natural rubber prices, the industry's total profit decline in the same period last year is already a high probability event." With the intensification of competition in the international and domestic markets, some international brands such as Michelin and Bridgestone have focused their marketing efforts on China, which will inevitably further exacerbate competition. In addition, since tires are important parts for automobiles, if the tire prices continue to rise, it will inevitably lead to higher vehicle costs. Given that the increase in sales of the auto market this year is lower than last year, the price increase may further have a negative impact on the auto market. In his interview with reporters, Si Sili thought that “under the background of fluctuations in raw material prices, the impact of multinational companies, and the growing strength of local tire companies, the competition among tire companies will be even fiercer, and the tire industry may usher in a reshuffle.†At present, the collective price increase of tire companies is just the beginning. Industry insiders expect that due to the fact that the price of tire raw materials this year will increase by 40% from last year, there may be room for further increase in tire prices. "Because last year's tire sales increased significantly, many tire manufacturers are brewing to increase production capacity this year. Tires are a very small profit-making industry. Once the market fluctuates, it may lead to a reshuffle of the industry." Si Sili said. "In the future of reshuffling, only those manufacturers that have the courage to innovate can gain a foothold in the competition." What should be the next breakthrough and innovation point in the tire market? Replacement tires will be the next market breakthrough When talking about new breakthroughs in the future tire market, Yu Sili believes that in many unfavorable conditions, tire manufacturers are actively seeking to change through mergers and acquisitions in the industry and finding new exports, which will become a new round of competitiveness for many companies. "In this, the previously unrecognized replacement tire market will become a new sales growth point for the industry, because replacement tires can help owners to achieve greater performance improvements at lower conversion costs," he said. He said that most of the current tire companies' focus is on the original tire market. However, with the increase in the number of car ownership in China, the market outlook for replacement tires has been very optimistic. He calculated such an account: "At present, the number of cars and cars is about 15 to 20 million. It is estimated that one car will replace about 1.5 tires a year, and about 35 million to 40 million replacement tires will be produced in about one year. market." Speaking about the future trend of tire prices, Yan Ye, a rubber industry analyst at Beijing Mid-term Futures, judged that “since the prices of natural rubber have not shown signs of falling in the short term, it is difficult for tire prices to drop significantly. In terms of exports, he believes that tire exports The possibility of a substantial increase in prices is also unlikely, and export companies will mostly fine-tune the prices by 3% to 4% based on the prices set at the beginning of the year." However, Yan Hao believes that some tire companies in China have achieved great success in developing new markets and technological innovation. "Some export companies have made breakthroughs in markets such as Central Asia, South America, and Africa and have just made up for the loss in the US market." Petrochemical Pump,Petrochemical Process Pump,Petrochemical Centrifugal Pump,Petrochemical Industry Pump Shenyang pump products sales co., LTD , http://www.syipsc.com