China's tire industry has reached the edge of the landslide

2018-09-12 09:30:53 12

Not long ago, the China Rubber Industry Association Tire Branch released a report on the production and operation of major tire companies in the first half of the year.

It is reported that in June, most of the domestic production of all steel and semi-steel tires showed negative growth.

Based on the accumulated data for the first half of the year, the output value, output, export and sales revenue of domestic tire companies are all in a slight growth state, but the growth rate of overseas factories is strong.

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The data show that from January to June, the output of comprehensive tires of 39 key tire enterprises in China was 208,842,100, a cumulative increase of 1.32%; among them, the domestic output was 18,646,200, a cumulative decrease of 0.61%.

This report also gives the classification of all steel and semi-steel tires. Among them, the total output of semi-steel tires increased slightly by 1.23%, and domestic production decreased by 1.36%.

This shows that on some important indicators, China's tire production began to decline.

According to statistics, in the first half of the year, the domestic tire capacity utilization rate was around 75%, and the industry's loss was as high as 27.3%. The gap between enterprises is constantly widening.

Due to the low base level in the same period last year, the profit rate of the whole industry has rebounded. However, the overall profit margin is still at a low level of around 2%.

It is worthwhile for tire companies to pay attention to the fact that these trends may continue to deteriorate in the short term.

According to the China Rubber Association Tire Branch, in the second half of the year, the industry's operation is even more severe, and tire production may experience zero or even negative growth.

Shi Yifeng, secretary general of the branch, said that next, the development focus of domestic tire enterprises will no longer be the problem of production and scale, but the competition of comprehensive strengths such as structural adjustment, efficiency improvement, brand building, technology accumulation and capital guarantee.