With the further spread of the epidemic overseas, and now market conditions overseas countries As we usually come to a standstill, even more countries have closed the implementation of the policy, hoping to control the further spread of the epidemic. In this environment, foreign companies such as us before, have entered the shutdown state; March 23, following the first batch of hundreds of European and American factories closed, there are a number of tire factory announced the suspension of operations or production.
Bridgestone tire plant in Europe and the Americas have entered stoppage cut stage in which the tire base in France and Italy shutdown, Belgium, Hungary, Poland and Spain tire plant production; Pirelli tires announced to temporarily suspend production in the United Kingdom, Italy and Romania factory; Michelin closed France, Italy Spain’s tire plant; Apollo tire plant in Hungary decided to suspend all production activities, while reducing production plant Netherlands; Cooper tire announced the closure of production facilities in Europe. It is obvious from information from multiple sources, under the impact of the epidemic, a lot of tire manufacturers will inevitably fall into the shut down period.
aspects of the large tire manufacturers cut production downtime not only means a tire capacity will fall, also sounded the alarm after market; now based on the domestic situation, after the outbreak abroad will also form a production capacity of stock situation. Shutdowns foreign factories, cut contrast, domestic enterprises have now gradually restore production capacity among foreign aggravate the epidemic and what impact it will bring the domestic automobile market?
China as the world’s largest industrial producer, every year a large industrial export trade, only in 2019 1–9 January, for example, China’s industrial export delivery value as high as 9.09126 trillion yuan, the annual turnover over one trillion yuan is not a problem. However, China is the largest worldwide producer of industrial does not mean it is the largest producer of raw materials,From the raw material level, in order to be able to support the huge levels of industrial production, the need is plenty of raw material imports.
on the domestic tire manufacturing industry, for example, domestic China’s second-largest tire production cost tire manufacturers exquisite brand tires, the highest proportion of raw materials (75.89 percent), labor costs accounted for only 6.05 percentage; raw material costs accounted for another tire brand tire triangle up 79.19 percentage , and race round tire raw material costs accounted for as high as 77.98 percentage; Therefore, the domestic tire production cost depends on the price of raw materials, while the tire’s main raw material is natural rubber, synthetic rubber, both of which accounted for 50 tire costs in the percentage.
Do not think that China is the origin of raw materials and because of the lack problems caused by lack of raw materials, in fact, China is ranked fifth worldwide rubber producing countries, the country’s main rubber produced in Hainan, Guangdong, Yunnan, three, China has about 150 large rubber plantations and rubber planting approximately 300,000 farmers. China Rubber annual output of 86.4806 million tonnes, accounting for 8.5 percent of global production. But relative, China is also a worldwide largest consumer of synthetic rubber, natural rubber as well as the largest importer. In simple terms, there is a corresponding domestic rubber resources, but can not afford the huge domestic consumption.
Therefore, based on the impact of the epidemic on the world, it is easy to predict the future imports will be significantly limit the amount of rubber in this area mainly for natural rubber imports, because for synthetic rubber, its mainly from oil and gas, oil price war and now are fighting in dire straits, oil prices will reduce or synthetic rubber cost; in the shift, the party will cost Behold change greater.
At present, the global tire market demand has reached 1.8 billion, the market is ultra-trillion level; about 376 million domestic market demand, market space up to 2500 billion and we can see the huge potential of the domestic tire market. But in the brand sales accounting, the annual domestic passenger car tire market is monopolized by foreign brands, such as our well-known Michelin, Goodyear, Bridgestone, Hankook, Ruckus Hallmark and other tire manufacturers are foreign brands, domestic there was only exquisite, triangle, round three race tire manufacturers is relatively well-known Chinese brands, but they tire of the above-mentioned foreign car firms have a considerable gap in terms of volume, it can be said, the domestic brand tire manufacturers have been closely surrounded. Well, from the impact of the epidemic, domestic tire brand can take this opportunity to find a breakthrough point?
from the car with the tire and the angle of view, the current tire domestic brands applicability of mainly Chinese automobile brand, the same exquisite tires, for example, are now equipped with exquisite original tire manufacturer BYD, red, Pentium, cheetah, of course, this is only matched in some new cars, such as the Pentium T77, cheetah CS9 BYD e2 other models, in addition, there Volkswagen Jetta VS3, VS5, VS7, K-ZE and Renault will be used to Linglong tires on new cars. From the popularity and market share, the domestic tire brands really not good. And based on the major foreign tire manufacturers have set up factories in the country, short-term supply for domestic consumption is still relatively abundant, but only for new car supply chain, the main market growth can be achieved in the short term is not made tires, because for car prices, tire suppliers have relatively fixed, want to break this relationship requires not only strong product strength, but also need to get consumer recognition.
but relative, the market is perhaps the domestic brand tires the force point; had also said, about 376 million domestic tire market demand, the market is up 250 billion, and this space is the market, but also can be understood as the tire replacement market. Tire supply chain is the first to meet the new car market, and then take care of the needs of the consumer market. Just under foreign manufacturers downtime environment, the domestic tire market supply will inevitably be affected, then formal development opportunities of domestic brands of tires, whether through the gap to enhance their product image, product market earned reputation for For future development is very important.
For the owners, the tire is an important component related to travel safety, and therefore also more cautious in the choice, of course, at this time They will be more inclined to brand highly higher foreign brand tires. But for domestic brand tires, they also have a higher price advantage, as the early Chinese-brand car companies in general, and now they are also looking for an opportunity to break through the ceiling of the brand, the impact of the epidemic, perhaps they are an opportunity, this is not only for domestic brand tires, but also an opportunity for Chinese suppliers and brand manufacturers.
(Source network, intrusion deleted)