market research report : tyre market in china 2011
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The Tyre Market in China is part of Netscribes Automotive Series reports. The market will be boosted by the high growth in automobile sector coupled with rise in replacement demand. The report begins with a brief overview about the global tyre market showing the growth of the global tyre sales, break up of tyres produced for specific vehicles and global competitive landscape. This section also provides a snapshot of the global truck tyre market, as well as passenger car and light truck tyre market. This is followed by the market overview of tyre market in China, providing details on the industry size in terms of volume and its growth. It also covers the growth of truck tyre sales and four wheeler tyre production in volume terms. The report also discusses the strategies that the players must undertake to remain competitive in the domestic market, along with the sales revenue, profit and export delivery volume figures. China is the one of the largest exporter of tyres across the globe. The report provides detailed information about the exports and imports of tyre under specific HS codes. It provides country-wise import and region-wise export for the year 2010, mentioning the top three countries importing from China. Factors driving the growth of tyre market in China are also explained in detail. Rising automobile sales, rising middle class and increasing income and replacement demand are the major drivers for the industry while scope in radicalization along with rising exports due to low priced Chinese tyres and availability of low-cost skilled labour and improvement in China’s road network are providing growth opportunities for the market. The players operating in the market also face challenges which are impeding their development and growth. Major challenges identified are anti-dumping duty and trade barriers from EU market. Surging costs of raw materials, appreciating currency coupled with restrictions imposed on car ownership are also hampering the growth of the market. Emerging trends in the tyre market include emergence of tubeless tyres, players focusing on radial tyres, advent of green tyres, players focus on upscale models and re-treading of tyres. The competition section outlays the competitive landscape of the tyre industry in China briefing about the domestic and foreign players existing in the market. This section provides a ranking of the players based on the revenue and profits followed by a three-dimensional analysis of key players’ revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario. Key takeaway section summarizes the entire market in terms of opportunities, trends and challengesTRANSCRIPT
Tyre Market – China
October 2011
2TYRE MARKET IN CHINA 2011.PPT
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Executive Summary
Market
Drivers & Challenges
Competition
Tyre market in China has been demonstrating rapid growth and development over the past few years, with tyresales amounting to x units in 20‐‐, y‐o‐y growth of y%
Tyre production in China stood at z units, in Aug 20‐‐, y‐o‐y growth of p%
Government Regulations & Standards
Government policies and regulations Regulation and certification procedures for imported tyres Business regulations for tyre distributors China’s tyre product standards
Drivers:
‐ Rising automobile sales
‐ Rising middle class and increasing income
‐ Replacement demand
‐ Scope in radialization
‐ Rising exports due to low priced Chinese tyres
‐ Availability of low‐cost skilled labour
‐ Improvement in China’s road network
Trends
Emergence of tubeless tyres Players focusing on radial tyres Advent of green tyres Players focus on upscale models Re‐treading of tyres
Challenges:
‐ Anti‐dumping duty
‐ Trade barriers from EU market
‐ Surging costs of raw materials
‐ Foreign Dominance
‐ Appreciating currency
‐ Restrictions imposed on car ownership
International players like Company 1 and Company 2 are boosting their investment in China, indicating tougher and more fierce competition for the domestic players
Some of the major domestic players in the market are Company 3, Company 4, Company 5 , Company 6 and Company 7
3TYRE MARKET IN CHINA 2011.PPT
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•Market Overview
• Global Market
• Domestic Market
•Export‐Import
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Takeaways
4TYRE MARKET IN CHINA 2011.PPT
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Chinese tyre industry has shown consistent growth and is expected to develop further in the future years
•China has been leading the world in terms of tyreproduction and sales for x consecutive years
• It is expected that tyre sales in China may increase by y% in 20‐‐, which is z times the global rate
Four wheeler tyre production in China is nearly p times that of India
Chinese truck tyre market is the biggest in the world
• According to National Bureau of Statistics of China, tyre production amounted to q units for Jan‐Aug 20‐‐, y‐o‐y growth of r%
Growth of Tyre Production
Growth of Four Wheeler Tyre Production
Tyre Market – Overview (1/2)
Growth of Truck Tyre Sales
g%
h%
0
20
40
60
80
units
20‐‐e
c2
20‐‐
c1
Tyres produced by other countries
Chinese truck tyres
0
50
100
150
200
250
300
unitsf%
20‐‐
b3
20‐‐
b2
20‐‐
b1
0
100
200
300
400
500
600
units
t%
20‐‐e
a3
20‐‐e
a2
20‐‐
a1
5TYRE MARKET IN CHINA 2011.PPT
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Region‐wise Exports (20‐‐)Growth in Exports under HS code 40‐‐
Tyre manufacturers earn revenues by exporting their products to various countries around the world
Country‐wise Imports (20‐‐) Growth in Imports under HS code 40‐‐
0
200
400
600
800
units
x%
20‐‐
a5
20‐‐
a4
20‐‐
a3
20‐‐
a2
20‐‐
a1
c10%
c9%c8%c7%
c6%
c5%c4% c3%
c2%
c1%
0
2,000
4,000
6,000
8,000
10,000
12,000
units z%y%
20‐‐
b5
20‐‐
b4
20‐‐
b3
20‐‐
b2
20‐‐
b1
Others
Country 9
Country 8
Country 7
Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
12%
10%
21%
18%
40%
Region 5
Region 4
Region 3
Region 2
Region 1
Top three importers are Country 10, Country 11 and Country 12 with 23%, 5% and 4% share of total
exports respectively
6TYRE MARKET IN CHINA 2011.PPT
Drivers & Challenges – Summary
Improvement in China’s road network
Drivers
Rising automobile sales
Rising middle class and increasing income
Replacement demand
Scope in radialization
Rising exports due to low priced Chinese tyres
Availability of low‐cost skilled labour
Restrictions imposed on car ownership
Appreciating currency
Foreign Dominance
Challenges
Anti‐dumping duty
Trade barriers from EU market
Surging costs of raw materials
7TYRE MARKET IN CHINA 2011.PPT
Trends – Summary
Emergence of tubeless tyres
Players focus on upscale models Advent of green tyres
Players focusing on radial tyres
Re‐treading of tyres
Trends
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Major Domestic Players in the Market (1/5)
Headquarters City 1, Province 1
Founded 19‐‐
ProductsType 1 tyres, type 2 tyres, type 3 and type 4 tyres, type 5 tyres, type 6 and type 7 tyres, type 8 tyres and type 9 tyres
Key People Person 1– General Manager
Company Snapshot: Company 1
Business Highlights
Corporate Information Financial Performance
Profit/Loss
Revenue
0
500
1,000
1,500
0
50
100
150
200
20‐‐
Profit/Lossunits
Revenueunits
a4
20‐‐
a3
20‐‐
a2
20‐‐
a1
• Company 1 engages in the manufacture and sale of tyres in China and internationally Company offers its products under the Brand 1 and Brand 2 brand names Ranked the xth largest tyre manufacturer in China in terms of sales in 20‐‐
• Company is building a type 10 tyre plant in city 2, with an investment of USDy mn Company will produce HP, UHP, winter and eco‐friendly type 12 tyres, as well as type 13/type 14 products
– Plant’s production will occur in stages, with annual capacities of p mn and q mn tyres for stages one and two, respectively, and a yearly output of r mn tyres once it reaches full production by the end of 20‐‐, according to company 1
• Company has adopted “100% environmentally friendly” manufacturing process at both its type 15 and type 16 tyreplants, ensuring that all tyres it produces from here on out are REACH‐compliant
New medium type17/type 18 radial tyres, type 19 tyres, or s are being produced in a more eco‐conscious facility– These tyres have achieved a a% and b% drop in rolling resistance and fuel consumption compared to a standard company 1 tyre
• It’s ultimate objective is to attain Tier 1 status by 20‐‐, its first step will be to reach Tier 2 status by the end of 20‐‐
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TYRE MARKET IN CHINA 2011.PPT
Other Major Domestic Players in the Market (1/3)
•Company 2 is the xth‐largest global tyre producer and No. y in China
• Company sells its products in Country 1, Country 2, Country 3, Country 4, Country 5 and internationally Company's current product line is offered through z series containing more than p tyre products Produces various specifications of type 4 tyre, type 5 tyre, type 6 tyre, type 7 tyre, type 8 tyre, type 9 tyre, type 10 tyre and type 11 tyre In 20‐‐, company’s total tyre production was q mn, r mntype 12 and type 13 tyres, s mn type 14 and type 15 tyres and u type 16 and type 17 tyres
• In Jun 20‐‐,Company 2 and Company 3, maufacturerof v products have agreed to jointly develop commercial applications for w
• In May 20‐‐, company announced its plans to launch new type 18 tyres in model 1 Company added 2 more sizes for model 2 and 6 more for model 3 to complete the product line
Company Snapshot: Company 2Corporate Information Business Highlights
• In Aug 20‐‐, Company confirmed its plans to build a tyre production plant in Province 3, Country 6, it’s first overseas auto tyre factory
•With a total investment of USDg mn, the factory will cover an area of 600 to 700 mu
•After the completion of first phase the factory is expected to produce h type 19 Tyres and i type 20, type 21 and type 22 Tyres annually that will be exported throughout country 7, country 8 and country 9
Headquarters City 2, Province 2
Founded 19‐‐
Products Type 1 tyre and type 2 tyre and type 3 tyre
Key People Person 2– Chairman
10TYRE MARKET IN CHINA 2011.PPT
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