Huge automobile demand in China to promote the rapid growth of the tire industry in 2007, 1-August, China tire 338.36 million, an increase of 23%, radial tires produced 153 million, an increase of 36.7%. 45% of the total radial tyres tyre. Indicates that the tire structure in China is to pursue high quality and high value-added direction.
Judging from the listed company, first three quarters of 2007 vehicles with tires implements the main business income 19,932,910,000, rose 30.1%, profits of SOEs was 608.82 million, an increase of 243.74%. Profit growth was higher than income growth, the overall development of the industry in good condition.
Automotive tire industry, net profit reached 146.2%, profitability significantly exceed the detergent industry, along with the big cars and continued growth of the automotive consumer and ushered in a stage of development, bringing tires and business development opportunities.
Competition: China tire enterprises are divided into State-owned, joint ventures/wholly-owned, private and other three big categories, businesses in the mechanism, technology, products, capital and marketing is different. State-owned enterprise based strong, but except minority Enterprise outside, most walking stumble, by system restricted factors development slow; joint venture/owned enterprise has funds, and management, and technology, aspects of advantage, but most gravity put in in the high-end products, except car, and light contains, half steel child afternoon tire outside, other varieties does not occupies scale advantage; private enterprise relies on mechanism flexible, progress soon, but technology and marketing network aspects of strength wooed.