Own brands to enter the car market constraints tire industry – Vertical slurry p
As the domestic automobile ownership in the rapid growth of tires as the most important one of the supporting parts, but also the development in full swing. Last year, China produced 280 million tires this year is expected the country’s total demand for tires would be more than 300 million, an increase of 15% or more. However, from the domestic car market, look at the pattern matching tires, foreign tire manufacturers account for 70% of cars matching the market, their own brands account for only 30%.
In supporting the field of commercial vehicle tires, by contrast, own-brand tire manufacturers account for 70% of the share of foreign automobile manufacturers accounted for 30%. Industry experts said that the own-brand car tire manufacturers in the market is not supporting the dominant reason is the scale of their own brand awareness and production constraints.
China Rubber Tire Association, Branch Secretary-General Tan Yu-kun said that own-brand tires has great difficulty in entering the car supporting the market, with its own brand pattern of the current car market is very much related. Currently the joint venture production of the mainstream car market share, such as Citroen, Volkswagen, Nissan brand in the international market such as share several decades of supporting the procurement history and work with them tire companies are also world-renowned manufacturers, own brand is difficult to penetrate into the tire business this long-term relations of cooperation.
Moreover, foreign car joint venture will also be the beginning of the signing of a joint venture to take care of the local tire manufacturer’s protocol, making its own brand tire manufacturers no competition opportunities. Tan Yu-kun said: “Foreign car manufacturers and tire manufacturers have a tacit understanding between, and awareness of own-brand tires not ring, people simply can not give you the opportunity.”
Michelin China, an informed source, wanted for the KIA Cerato with Michelin tires, and on track. The result is a single lap time, Kumho Tires Michelin tires faster than 4 seconds, even if there is significant difference, or stick with Kia in South Korea’s Kumho Tire. The source told reporters: “Sino-foreign car joint venture, the protection of the local tire business is very serious, long ago formed a permanent relationship, even if other international tire companies is difficult to break this pattern, let alone in the car tire on the lack of experience, the brand is not strong in the Chinese tire manufacturer. ”
From the self-brand tires on their own perspective, the scale of production is also constrained their cars internal factors supporting market development. Experts said that the own-brand tire business most of the current output of three million articles each year, while the large international tire production scale of at least 10 million a year.
Own brand manufacturing enterprises due to long-term commercial vehicle tires, each accounted for most of the capacity, in an increasingly crowded passenger car tires struggled a bit hard to avoid matching fields. Last year, Michelin and Goodyear for the car market, “as you OK” and the “nanny programs” are all respond to their own brand of fierce market competition, an effective measure.
The own-brand tire companies do not have a follow-up, you can see by the scale of production constraints, some of its inadequacies. In addition, industry experts told reporters: “independent brands produced each year remains a considerable amount of bias tires. However, with the road conditions changed for the better, vehicle performance, self-bias tire brand market demand is declining, how to transform this part of the production capacity , the production of radial tires for cars to use their own brand tires are also a business problem. ”
In addition, Tan Yu-kun said: “With the own-brand sedans in recent years in production, the quality of the leaps and bounds, to bring their own brand tire business development opportunities. Last year, Chery and Geely have been among the top ten national car sales , Brilliance, Hafei and other brands are also very active in the performance car market, self-brand tires, if an enterprise to seize this opportunity to upgrade technology, build brands, expand the scale, it is still possible to catch up with foreign-funded enterprises in the car matching the market advantage. ”
At present, the own brand tire company also has some labor-cost advantage. It is understood that the tire industry labor costs abroad are generally more than 15%, while China’s labor costs no more than 5%. However, some experts have also pointed out that foreign tire companies have extensive investment in their own brands to set up factories to make such a labor cost advantage is gradually lost.
Can be seen in the passenger car tire you want to reverse the disadvantage of supporting the market, enterprises must increase their own brand tires, radial tire technology to the development and upgrading and expanding its brand awareness, and rational and effective way to expand the scale of production.
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