China Tire Market, By Design, Trends, Forecast 2022-2028
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the China tire market was worth USD 29.0 billion in the year 2021. The market is estimated to grow at a CAGR of 6.4%, earning revenue of around USD 44.8 billion by the end of 2028. China’s tire market is flourishing at a high rate owing to the growing automobile production activities. China is the major automobile manufacturer in the world in terms of annual production. China is expected to produce 35 million automobiles by 2025, which will fuel the market demand for tires during the forecast period. Further, rising vehicle ownership for both private and commercial purposes is expected to drive the growth of China tire market during the forecast period. However, increasing penetration of counterfeit and second-hand tires in the market may act as a huge restraining factor for market growth.
Increasing Vehicle Ownership in China Projected to Drive the China Tire Market
In China, vehicle ownership is increasing rapidly due to the rising disposable income and the availability of low-priced vehicles due to lower production costs. According to the Ministry of Public Security, over 16 million passenger cars were registered during the first quarter of 2021. The national motor vehicle ownership also spiked to 390 million units by September 2021, including 297 million cars. With the increasing demand for vehicles, the demand for tires is also projected to surge in China during the forecast period.
Expanding Online Sales Channels Boosting the Growth Of the China Tire Market
The China tire market is quickly shifting towards online sales channels, especially after the COVID-19 pandemic outbreak. The restrictions on distribution channels due to lockdown prompted the tire sellers and buyers to shift and browse through online channels. Furthermore, most popular websites such as Alibaba, etc., offer a wide range of products, along with a lot of information about tires, which helps the buyers to make their final decision, based on their needs and budgets. Moreover, the Chinese tire market is expected to benefit from the flourishing online sales channels during the forecast period.
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China Tire Market - By End-User
Based on end-users, the China tire market is grouped into the Original Equipment Manufacturer (OEM) and replacements segments. The OEM segment accounts for the largest market share owing to the presence of leading automobile manufacturers in China. Tires are in high demand in China, since the country is home to many automakers, including FAW, SAIC Motor, Dongfeng, BYD, etc. Further, many global carmakers, such as Audi, manufacture their vehicles in China due to lower labor costs, which is boosting demand for tires and propelling the market growth.
Impact of COVID-19 on China Tire Market
The COVID-19 pandemic outbreak negatively affected China's tire market. The surging COVID-19 infection cases put an immense burden on the Chinese healthcare system, due to which the government had to impose strict lockdown. Throughout China, the nationwide lockdown resulted in restrictions on automobile and tire manufacturing and production activities, which caused tire producers to suffer enormous losses. Market growth was also held back by restrictions on distribution channels. However, tire brands quickly shifted to online sales channels, which is expected to restore the market slump during the forecast period.
China Tire Market- Competitive Landscape
The leading players in the China tire market are Tongli Tyre Co., Limited, Shanghai Huayi Group Corporation Limited, Triangle Tyre Co., Limited, ONYX Tyres, Zhongce Rubber Group Co., Limited, Wanli Tire, Aeolus Tyre Co. Limited, Prinx Chengshan Tire Company, Sailun Jinyu Group Co. Limited, Cheng Shin Rubber Co. Limited., and other prominent players.
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