Sealand Securities forecast China tire consumption

Recently, Guohai Securities released a new research report on China’s tire industry, highlighting that as the low-end market gradually becomes saturated, domestic tire manufacturers are accelerating their shift toward the high-end market—an irreversible industry trend. The report emphasizes that this transition not only places higher demands on companies' product capabilities but also tests their overall competitiveness in areas such as channel coverage and brand awareness.

As the tire industry moves toward high-end development, companies will face higher industry barriers. However, this also indicates more substantial potential rewards. Specifically, the countertrend rise in comparable gross margins has become a crucial indicator of a company’s competitiveness. Additionally, whether companies can achieve breakthroughs in the high-end automotive original equipment (OE) market is seen as a key factor for successful transformation.

According to the report's forecast, by the end of 2025, China’s overseas tire production capacity will still have significant growth potential, maintaining an advantage over the U.S. market. Meanwhile, the domestic tire production capacity, compared to the European market, has even greater room for expansion, demonstrating China’s competitive edge in the global tire industry.

In terms of market segments, the domestic semi-steel and all-steel tire markets are expected to gradually recover, driven by the revival of the automotive industry. From 2024 to 2026, China’s consumption of all-steel tires is projected to reach 78.97 million, 81.4 million, and 83.75 million units, representing year-on-year growth rates of 4.62%, 3.07%, and 2.88%, respectively. Semi-steel tire consumption is expected to be 336 million, 360 million, and 383 million units, with annual growth rates of 7.57%, 7.05%, and 6.51%, respectively.

These figures indicate that the Chinese tire market is shifting from "volume" to "quality," as the industry embarks on a new phase of high-quality development with a promising future. Guohai Securities' analysis suggests that companies with strong technological capabilities and brand influence will have a greater advantage in this transformation, leading the industry into a new era of high-end growth.

（This article is organized by Wetire website, and the information comes from tireworld Network）