China Tire Market By Vehicle Type (Passenger Cars, Two-Wheeler, M&HCV, LCV, Three-Wheeler and OTR), By Demand Category (Replacement, OEM), By Tire Construction Type (Radial, Bias), By Region, Competition Forecast & Opportunities, 2017- 2027

China tire market was valued at USD44,500.15 million in the year 2021 and it is expected to grow at CAGR of 10.98% until 2027 on account of expanding automotive industry in China. In China, an increase in vehicle sales has been seen with time, and many vehicles are being exported overseas and this is driving the growth of China tire market in the upcoming five years.

The spread of the COVID-19 pandemic has affected the China tire market in many ways. Due to COVID-19, China has faced a health and economic crisis. The country faced a decline of USD 300 billion or 2.4% in the imports of the tire in the month of January and February 2020 compared to the same period in 2019. The foreign tire companies’ operating in the country are also facing pressures to diversify or move out from the China due to the supply chain issue. Due to the declaration of lockdown to stop the spreading of the pandemic, almost all the automotive factories, showrooms, and workshops were closed, resulting in a significant decline in production and sales of tires in China. China is facing growing restrictions on its overseas commercial activities and access to foreign technology due to the impact of COVID-19, but in 2020, the Chinese government reported 3.2% gross domestic product (GDP) growth in the second quarter and 4.9% GDP growth in the third quarter of 2020.       

Growth in Automotive Export

China is home to some of the world's largest light-vehicle manufacturers globally, where most of the vehicles are exported overseas. According to the China Passenger Car Association (CPCA), China has exported more than 760,000 cars in the first five months of 2021. Some of the main export destinations include Chile, Saudi Arabia, Russia, and Australia. Many automotive companies have set up their manufacturing plants in China, such as Tesla. The production plant of Tesla is based in Shanghai (China). Tesla's Model 3 and Model Y exports stood at almost 25,000 units in April & May in 2021, driven by Tesla's Gigafactory in Shanghai. China is a leading exporter of automobiles to most regions across the globe. The rising demand for automobiles in most countries leads to higher production in China. According to the China Passenger Car Association (CPCA), China has shipped about 2.02 million units of all types of vehicles overseas in the year 2021. In 2021, the automotive industry faced a chip shortage, affecting vehicle sales. According to the China Association of Automobile Manufacturers, the auto chip shortage has affected global carmakers' production, but the Chinese vehicle producers have suffered much less than their counterparts in the US or Europe. Due to this high and rising vehicle production in China is expected to continue boosting demand for tires in the OEM tire segment.

Government Incentives for the Electric Vehicles

The government of China has introduced many incentive plans to bolster auto sales, which have been hit by the fallout from the spread of the coronavirus. The government of China has introduced many subsidies policies on the purchase of electric vehicles. By this, many people are showing interest in buying electric vehicles. The electric vehicle is heavier than the combustion engine vehicle due to the weight of battery. Due to the heavy weight of vehicle, there are more wear and tear in tires due to which tire manufactures introduce new features for electric vehicle tires.

 The electric vehicle produces very less noise, so the effects of wind noise and tire noise are more noticeable when in an electric vehicle, so the tire manufacturers are making tires with different tread patterns that cut down on the acoustic effects. With the new features in the tires of electric vehicles, the demand for the tires in China tire will increase.

Economical Pricing and Technological Developments Driving Chinese Tire Market

The Chinese tire brands are gaining market share as it is the world's largest producer and exporter of automobile tires in various regions across the globe. OEM demand from whole-vehicle manufacturing and replacement demand from automobile aftermarket is very high in China as compared to the rest of the world. Owing to the low prices and advanced technology, Chinese tires are in high demand across the globe. The Chinese tire is cheap in price with good quality compared to any other brand, and people are showing interest in Chinese tire brands as they are available at lower prices than international brands. The quality of the products offered by the Chinese brands is getting better and better as all the Chinese production sites have extensive quality control systems that help maintain the tire quality. This factor is going to drive the Chinese tire market in other regions of the world.

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Market Segmentation

The China Tire market is segmented based on Vehicle Type, By Demand Category and Tire Construction Type Based on vehicle type the market is further fragmented into Passenger Car, Two-Wheeler, M&HCV, LCV, Three-Wheeler and OTR. Based on the tire construction type, the market is bifurcated into radial and bias. In the vehicle type, passenger car tires segment is the dominant with a market share of 46.36% in the year 2021. China is home to many automotive manufacturers as many automotive companies have stabilized their production plants in China, due to this the China tire market is growing year on year.     

Company Profiles

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) Tire Company are among the major market players in China that lead the market growth of the China tire market.

Report Scope:

In this report, China tire market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• China Tire Market, By Vehicle Type:
• Passenger Car
• Two-Wheeler
• M&HCV
• LCV
• Three-Wheeler
• OTR
• China Tire Market, By Demand Category:
• Replacement
• OEM
• China Tire Market, By Tire Construction Type
• Radial
• Bias
• China Tire Market, By Region:

o   East China

o   South-Central China

o   North China

o   South-West China

o   North-East China

o   North-West China

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in China tire market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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