Emerging Giants: Chinese Tire Brands Dominate Global Growth

Brand Finance has just published the Tyres 25 2024 Report, showcasing the most valuable and strongest tire brands of the year. The report highlights that nearly half of the fastest-growing tire brands worldwide are Chinese. Among the notable Chinese brands, Sailun saw a brand value increase of 10% to USD 801 million, Linglong Tire grew by 11% to USD 799 million, and Sentury Tire rose by 17% to USD 377 million, all driven by substantial overseas demand.

According to Alex Haigh, Managing Director of Brand Finance Asia, Chinese brands are excelling in a market where global tire giants face challenges. He noted that their remarkable growth in adverse conditions highlights the resilience and dynamism of the Chinese tire industry. Haigh also mentioned that Linglong Tire, Sentury Tire, and Sailun are expanding their global footprint, leveraging cost-effectiveness to capture significant market share. Haigh emphasized that with inflation impacting traditional markets, the rise of these Chinese brands signals a new era of competition and opportunity in the global tire market.

The list includes six Chinese brands among the 25 tire brands ranked by Brand Finance. Sailun (11th) and Linglong (12th) are among the top fifteen in terms of brand value, while other Chinese brands on the list include Sentury (18th), Zhengxin (22nd), Kenda (23rd), and Triangle (25th). The Chinese tire industry had a prosperous year in 2023, marked by the expansion of overseas operations, high demand, and favorable domestic conditions. Notably, exports to South America increased by 33%.

Here are several reasons why Chinese tires are booming and expected to grow even more in the future:

• High Demand from Foreign Markets: For some companies, the demand for Chinese tires far exceeds their production capacity.
• Overseas Expansion of Chinese Companies: Chinese tire manufacturers are expanding their presence in international markets.
• Favorable Domestic Industry Conditions: The tire industry in China is experiencing favorable conditions for development.
• Cost-Effectiveness: In the face of high inflation in European and American markets, Chinese tires offer significant cost advantages, leading to a substantial increase in exports.
• Government Support: In 2023, Chinese authorities have implemented effective measures to stabilize foreign trade, support the private economy, and accelerate the integration of domestic and foreign trade.
• Expanding Automotive Industry: China's automotive industry is growing, with car exports skyrocketing and electrified cars approaching a 50% market share

According to data from the China Association of Automobile Manufacturers (CAAM), the export of complete vehicles from China has grown significantly since 2021. That year, exports exceeded 2 million units for the first time, marking a year-on-year increase of 103% and establishing China as the world’s third-largest automobile exporter. In 2022, exports reached 3.32 million, a 56.8% increase from the previous year. By 2023, this number had surged to 4.91 million units, a year-on-year increase of 57.9%, allowing China to surpass Japan as the world's largest vehicle exporter.

In 2024, China is experiencing record-breaking car exports, with an estimated 5 million cars to be exported this year. The trend towards EVs is alarming for Western automakers, with some predicting that all cars worldwide will be made in China in the next 20 years. This underscores the significant growth and dominance of the Chinese automotive industry in the global market and has also become a key factor driving the increased demand for tires.

We have some exciting news! Some of these leading tire companies will be participating in CITEXPO 2024, the largest tire and wheel trade show in the Asia-Pacific region. It's a fantastic opportunity to discover their latest products and innovations in the tire industry. Join us at the CITEXPO 2024 and connect with these pioneering brands!

To register yourself, please click: here.

To view the full CITEXPO 2024 exhibitor list, please visit: here.