China Tire Market to Grow at 10.98% CAGR by 2027
Increasing demand for radial tires coupled with growing fleet
size is to drive the China tire market through 2027.
According to TechSci Research report “China Tire Market By Vehicle Type (Passenger
Cars, Two-Wheeler, M&HCV, LCV, Three-Wheeler and OTR), By Demand Category
(OEM, Replacement), By Tire Construction Type (Radial, Bias), By Region, Competition
Forecast &
Opportunities, 2017- 2027,” China
tire market stood at USD44,500.15
million in 2021 and is estimated to reach USD82,463.17
million in 2027 growing with a CAGR of 10.98% in the forecast years. China
tire market is driven by the growing vehicle usage across the country, lined
with the increasing research and development to produce more efficient tires
that adhere to standards and regulations. Major tire manufacturers are
investing heavily in the production of state-of-the-art tires by integrating
smart technologies such as shape memory alloy radial technology (SMART), tires
equipped with pressure sensors technology, etc., for optimum functioning of
tires providing drivers a superior driving experience. Mika Penttilä, Head of Digital Technology of
Nokian Tyres stated that
“If a car does not have an active driver to ensure that the tires are safe to
use, safety needs to be measured in another way”. The other ways to measure
safety are the sensors and smart technology tires developed lately. The increasing penetration of electric
vehicles across the country is escalating the country's automobile fleet,
consequently driving the sales of tires in the country, airing the China tire
market growth. Tires are critical components of an automobile and need to be
replaced when needed. The inappropriate condition of a tire can lead to
slipping, which can result in life-threatening accidents. As a result, China
tire market is getting a fair share from the replacement market. The
replacement ratio of the tire will get reduced by the development in innovative
technologies, and by this China tire aftermarket growth is anticipated to get
hamper.
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China tire market can be segmented based on Vehicle Type, Demand
Category, Tire Construction Type, Region and Company.
In terms of vehicle type, China tire market is segmented into passenger
car, LCV (Light Commercial Vehicles), M&HCV (Medium and Heavy Commercial
Vehicles), OTR (Off the Road Vehicles), Two-Wheeler and Three-Wheeler. Owing to
China’s enormous fleet of passenger cars, based on vehicle type, China tire
market is majorly dominated by passenger car tires. The segment accounted for 46.36% market share in 2021
and is anticipated to maintain its dominance by 2027 to reach 45.33% market
share. By the increase in the commercial activities, the M&HCV is anticipated to be the fastest growing segment in the
forecast years advancing with a CAGR of 12.05%.
In terms of demand category, China tire market is segmented into Original
Equipment Manufacturers (OEM) and Replacement. The OEM tires segment of China
tire market is comprised of the tires that are being sold to the automotive
manufacturers, while the replacement tire segment of the market is comprised of
the tires that are being replaced by the fleet owners after the purchase of the
vehicle. Owing to enormous fleet of automobiles and increasing vehicle usage
the replacement China tire market is dominating based on demand category. The
replacement segment accounted for 69.18% market share in 2021. Other than
significant fleet size of automobiles, the high replacement ratio of M&HCV
tires is driving the sales of replacement tires in China Tire Market.
In terms of tire construction type, China tire market is segmented into
Radial and Bias. The radial tires are mainly equipped in passenger cars, light
commercial vehicles, medium and heavy commercial vehicles, while most of radial
tires are equipped in two-wheelers. The radial tire segment is dominating with 60.19%
market share in 2021. Furthermore, owing to performance benefits like better
vehicle handling, better grip, fuel efficiency, the radial tires segment is
anticipated to advance with a CAGR of 8.62% in the forecast years 2027.
In 2020, tires sales declined in China compared to 2019 as the country
underwent strict lockdown in the second and third quarters of 2020 to counter
the spread of the COVID-19 pandemic. Many industries, including the tire
manufacturing industry, have faced a consequential decrease in the production
of tires due to full or partial lockdown restrictions imposed by the national
government to reduce the spreading of coronavirus. Owing to lockdown
declarations to curtail the spread of the COVID-19, almost all the automotive
factories halted their vehicle production, consequently hampering the sales of
OEM tires. Moreover, due to lockdown restrictions and increasing work from home
activities, the replacement tire market hit in 2020. Owing to the increasing
adoption of electric vehicles in the country and technological developments,
China tire market is anticipated to recover in around two years.
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Some of the major players
operating in China tire market are Hangzhou Zhongce Rubber Co. Ltd., GITI Tire
(China) Investment Company Ltd, Sailun Jinyu Group Co. Ltd., Kumho Tire Co.
Ltd., Triangle Tire Co. Ltd., Hankook Tire China Co. Ltd., Double Coin Holdings
Ltd., Cheng Shin Rubber (China) Co. Ltd, Aelous Tyre Co. Ltd, and Prinx
Chengshan (Shandong) etc. Apart from these companies, local unorganized
manufacturers are also increasing their marketing activities and enriching their
product portfolio across China to increase their customer outreach.
“In 2021, East China accounted for the largest share i.e., 34.15% in China
tire market. The region is expected to maintain its dominance over the next
five years as well, with East China being one of the leading tire markets globally.
However, South-Central China is giving neck to neck competition. Moreover, increasing
fleet size of automobiles is boosting demand for tires in the country.”, said
Mr. Karan Chechi, Research Director with TechSci Research, a research based global
management consulting firm.
“China Tire Market By Vehicle
Type (Passenger Car, Two-Wheeler, M&HCV, LCV, Three-Wheeler and OTR), By
Demand Category (Replacement Vs OEM), By Tire Construction Type (Radial Vs Bias), By
Region, Competition, Forecast & Opportunities, 2017- 2027,” has
evaluated the future growth potential of China tire market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in China tire market.
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