Foreign Tire Manufacturers Accounted For 70% Market Share In China, Supporting

2009 China car sales surge feast, did not stimulateHankook Tire, said their presence in the field 20% of
domestic tire manufacturer's rapid growth, butthe share.
"fertilization" of the past several years in China, the    This reporter has learned, F3, Excelle, Yuet
international tire giants, some of the company'smove, Jetta, Santana, Accord, Elantra, QQ, Corolla and
complete tire sales increased as much as 50%.Camry and other top ten new cars sold last year, 90%
    At present, Michelin, Goodyear, Hankook Tirewith foreign tires.
and other international enterprises have occupied 70%    CAI Wei-min analysis, a clear increase in car
of China's passenger vehicle matching thesales companies such as FAW-Volkswagen, Shanghai
overwhelming share of the market.GM, Beijing Hyundai and Dongfeng Nissan are all
    A huge increase in salesjoint-venture status, foreign shareholders are more
    Tire Factory's business is divided into carwilling to do with the overseas big tire package.
matching (hereinafter referred to as "OEM") and theMoreover, the Korea-Japan joint-venture auto
replacement tires in two parts.company departments like to use their own country
    "First Financial Daily" from France and Southtires, even though these products has long been a
Korea Hankook Michelin's annual report the data to"MadeinChina".
see the two companies in China last year, passenger    Mr. Yang is also a Goodyear dealer told this
cars (and light truck) tires OEM sales went up by 65%reporter that domestic tire actually much cheaper than
and 55%. Although none of Goodyear and Bridgestoneoverseas. Same diameter as the 15-inch tires,
public figures, but the industry is estimated that thereoverseas enterprises OEM pricing is 400 yuan / Article
are no small increase.expensive than the domestic one times more, but
    At present, China has become the only brightbetter-funded big-name high-profile tires, vehicle
spot in foreign tire companies. Michelin's globaloperators also believe that consumers still prefer big,
operating profit in 2009 fell 6%, but because of theso they inclined to the latter order.
surge in China's auto demand, the Chinese market for    He also said that domestic enterprises are the
the first time to replace the U.S. as the Michelin tireslack of marketing capabilities, "despite the Hankook is
used by the world's largest market. Hankook Tire alsothe world's seventh largest tire factory, but its vehicle
told this newspaper that is available throughout 2009,plant in the OEM channel and even on public relations
"ups and downs," the word to describe. Its 2005 tomore than Michelin, Bridgestone and other companies,
2008, the average OEM sales increased by more thanOEM share in recent years has become a lot.
10%, but the strong sales momentum in 2009 have"Hankook is currently moving to do, not only for the
given them surprised.modern Yuet matching tires, but also into the Audi A6L,
    China Rubber Industry Association Tire BranchSkoda Series, Touran, MA 6, the new Passat
of the Secretary-General Cai Weimin told reportersautomobile plants and other non-Han University .
that in 2009 domestic 44 tire sales revenue grew by    In fact, China's second choice, exquisite, triangle
7.1%, "included in the statistics of foreign companiesand southern China are exported to the U.S. tire quality
and China's Taiwan enterprises, such as Michelin,has also been internationally recognized, and individual
Kumho Tire, Nanjing plant, Hankook and Taiwan arecompanies also do OEM for foreign brands, it is still
the new tires and so on, but there are moredifficult Prize joint-venture automobile plant importers.
domestic-funded enterprises. "Shandong Linglong Rubber a manager, says that
    He said the company's sales increased by"Some automobile companies do not understand our
more than 40 compared to previous years is normal,products, which requires a process. Our goal is to take
but passenger tire market growth compared to OEM,some of the first multi-domestic vehicle factory orders,
or a lot less.and then slowly infiltrate into the automobile joint
    OEM is a high degree of monopoly of foreignventure plant." The Another company insider, told
capitalreporters that the existing OEM customers have
    Cai Weimin said the foreign tire companiesincluded Xiali, Beijing Foton, Chongqing Hongyan, FAW
have divided up the country for at least 70% of theand so on.
passenger car OEM market. The figures provided by