Chinese Tire Export Market Projected to Growth Despite Tough International Trade Conditions – Ken Research
Posted by African Press International on May 11, 2016
The forecast for Chinese tire market looks positive despite unfavorable macroeconomic conditions such as shrinking domestic demand and recession limiting the export demand.
· This is because the Chinese tire manufacturers have great cost and industrial chain advantages which have the potential to disrupt the market.
Ken Research has announced its latest publication on, “Research Report on China Tire Export, 2011-2020”,which provides in-depth analysis of China’s tire market. The publication includes an overview of the tire industry in China in terms of both supply and demand. The status of tire Industry in China is also detailed upon in the research report. The PESTLE analysis of the external environment of the tire industry in China is included in the report. Furthermore, the research also throws light upon the policies adopted by the Chinese government for the tire export.
The Chinese ecosystem is extremely conducive for the tire industry to mushroom. The availability of raw materials at low cost is one of the primary forces which drive the Chinese tire industry. Not only natural rubber, but also other materials such as synthetic rubber, zinc oxide and carbon black are easily available in China. This enabled the Chinese manufacturers to cut costs and also produce tires at highly competitive prices. Additionally, the local manufactures also have competitive advantage in terms of manufacturing skeleton material like steel wire and rubber machineries such as calendar, internal mixer, molding machine and vulcanizing machine.
The past data shows that the Chinese tire exporting activities began as early as 1952, with a large variety of tires being exported. Some of the types included light truck tire, truck tire, agricultural tire and many more. After Europe, China has become the largest producer, consumer and exporter of tire. As of 2015, China has exported almost 44.451 million tires with a YoY, decreasing by almost 6.58%. This decrease can also be attributed to the decline in average price per unit, which in turn is a result of decline in the global price of natural rubber. according to the Research Analyst, Ken Research.
The fast growth of Chinese tire market over the past decade became a matter of concern for many developed economies. For instance, the US and European Union both changed their trade policies so as to limit the volume of tire being exported from China. An important change was the setting up of stricter technical standards for tires being exported from China. Apart from these unfavorable international trade conditions, the Chinese tire manufactures are also facing anti-dumping issues because of unhealthy competition and unreasonable product pricing.
Even though the Chinese tire industry is facing tough international trade conditions, it is still projected to grow by the end of 2020. This is because the Chinese government is taking active steps towards using its industrial chain and cost advantages to maintain its position in the global market.
Global Tire Industry
The global tire industry is reported to achieve moderate growth with emerging economies such as India, China, Vietnam and Thailand becoming the hub of activity. The growth is limited and restricted because slow worldwide GDP growth rate and the developed countries still reeling under the impact of recession.
According to research, the two-wheeler tire segment with the global tire industry is expected to grow fastest because of increasing demand for less expensive transport options and emerging economies the largest contributors towards overall output in the industry , according to the Research Analyst, Ken Research.
Some of the key forecasted trends in the global tire industry include:
Further sophistication of technology
· Advent of green tire manufacturing
· Innovation the key for sustainable business
· Continuous enhancement of tire design
Key Topics Covered in the Report:
– Detailed overview of the Chinese tire industry
– Status of the Chinese tire industry
– The Chinese tire market shape and size
– Factors affecting China’s tire Export
– Major export destinations of Chinese tires, 2011-2015
– Trade barriers imposed on Chinese tire exports
– Future outlook of Chinese tire export market, 2016-2020
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