Chinese tire makers poised for period of "strong development"

Qingdao, China – China’s tire manufacturing industry is set for a period of “strong development," with domestic demand providing a key driver for growth, said Sentury Tire president Lin Wenlong.

Addressing the 20th China Rubber Annual Conference on 25 March, Lin Wenlong noted that the Chinese government had listed "expanding domestic demand" as a top priority for 2025: creating new opportunities for the tire industry to grow locally.

According to the industry leader, China’s new-energy vehicle production and sales increased by more than 30% year-on-year in 2024, and the growth rate in the first two months of 2025 exceeded 50% compared to the previous year.

However, he said, local tire makers mainly supply to mid-range and low-range automotive models, with the proportion of supply to mid-to-high-end new energy vehicles remaining “relatively low.”

To address that, Lin Wenlong called for “the continuous improvement of local tire R&D, quality, and domestic consumer recognition.”

Combined with strong national policies, these will help Chinese local tire brands achieve more breakthroughs in mid-to-high-end EV models, he added.

Another key driver of growth will be the use of artificial intelligence and humanoid robotics in the industry.

Lin Wenlong noted that Chinese manufacturers have initiated an ‘efficiency revolution’ using AI and robotics.

As an example, Lin Wenlong said a traditional passenger car tire production capacity of 12 million requires about 2,000 people.

Sentury’s Moroccan smart factory, however, only needs 600 employees, having improved efficiency significantly through intelligent upgrading.

Artificial intelligence and computing, he added, “will bring about the second stage of smart tire production and reshape the industry.”

Specifically, the technology can help Chinese tire makers reduce the complexity of overseas factory management and reduce labor costs in other countries.

A third driver for growth, Lin Wenlong noted, is the recent global expansion of local tires makers, having established production bases in Southeast Asia, Africa, Europe, and the Middle East.

This, he said, will increase the influence of Chinese tire brands globally.

In terms of profitability, Lin Wenlong compared the top 10 Chinese brands with the top 10 global brands in 2023.

“The average net profit margin of domestic tire companies is ahead of overseas competitors,” he said.

Furthermore, for the first three quarters of 2024, Chinese companies posted a double-digit increase in their net profit, while six of the top eight global companies have reported “single-digit” gains.

Similarly, Wenlong said Chinese tire companies maintained double-digit sales increases for the first nine months of 2024, while global tire makers posted a revenue contraction for the same period.

“China's leading tire companies are gradually forming competitive advantages in cost control, management sophistication, and intelligent manufacturing,” said Lin Wenlong.

In the future, he said, Chinese tire makers need to work together to develop mid-to-high-end brands and invest in R&D and intelligent manufacturing.

For Chinese tires to ‘break through,’ the Sentury Tire leader called for sustained global investment in factory construction, an expanded manufacturing footprint, and R&D - particularly in sustainability and innovation.