China's Tire Industry Accelerates Globalization: Innovation Leads the Way

In recent years, China's tire industry has achieved significant milestones in the global market. In 2023, China accounted for 56% of the global tire production, making it the world's largest producer and consumer of tires. However, facing technical barriers and trade restrictions from developed countries, Chinese tire companies have successfully broken through limitations through technological innovation and overseas expansion. For example, the high-performance radial tire production technology developed by Qingdao University of Science and Technology, in collaboration with multiple enterprises, has been industrialized in over 100 countries and regions worldwide and received the 2024 National Science and Technology Progress Award.

Technological Innovation and Industrial Upgrading

Technological innovation has become the core driving force behind the tire industry's development. Companies are accelerating the shift towards high-performance, green, and intelligent products. For example, Michelin's investment in a green intelligent manufacturing project for high-performance radial tires in Shenyang is expected to produce 830,000 high-performance tires annually. Meanwhile, Chinese tire companies are also increasing R&D investments to develop low-rolling-resistance and high-wear-resistant tires to meet the needs of new energy vehicles.

Accelerated International Layout

To counter trade protectionism, Chinese tire companies are rapidly expanding overseas production capacities. For example, Sailun Tire has expanded its capacity in Vietnam, Cambodia, and Mexico, while Sentury Tire has invested in factories in Thailand, Spain, and Morocco. These projects not only enhance the companies' international competitiveness but also create significant employment opportunities locally.

Market Trends and Opportunities

With the increasing global vehicle fleet and the rapid development of new energy vehicles, the demand for tires continues to grow. The global tire market is projected to maintain stable growth, reaching a market size of USD 280 billion in the coming years. Meanwhile, Chinese tire companies are also increasing their market share domestically, with significant year-on-year growth in overseas revenue in 2023.

Green and Sustainable Development

Amid growing global environmental awareness, green and sustainable development has become a key trend in the tire industry. Tire companies need to promote energy-saving processes and develop high-performance, eco-friendly products. For example, Chinese tire companies have successfully reduced energy consumption and pollution in the production process by adopting new eco-friendly materials and intelligent manufacturing technologies.