China Tire Market, By Region, By Competition, Opportunities & Forecast, 2020-2030F

The China Tire Market was valued at USD 54.81 Billion in 2024, and is expected to reach USD 102.40 Billion by 2030, rising at a CAGR of 10.98%. China's tire market is one of the largest globally, driven by robust automotive production and growing vehicle ownership across passenger and commercial segments. The expanding middle class and increasing disposable incomes are fueling demand for passenger cars, directly influencing the tire market's growth. According to the Ministry of Industry and Information Technology (MIIT), China's auto production reached 30.09 million units in 2023, up 12% YoY, directly boosting OEM tire demand, especially from domestic players like Sailun, Linglong, and Double Coin.

Furthermore, the government's investments in infrastructure projects, such as highways and transportation networks, boost the demand for commercial vehicles and their associated tire needs. A steady rise in electric vehicle (EV) adoption is also contributing significantly, with manufacturers focusing on developing specialized tires tailored for EV performance requirements.

China’s tire market is characterized by its export-driven growth and strong domestic demand, both in replacement and OEM segments. The country’s position as a global manufacturing hub enables the production of high-quality yet cost-effective tires, which appeal to international markets. Domestically, rising EV penetration has created a surge in demand for tires specifically designed for electric vehicles, offering reduced rolling resistance and enhanced durability. The replacement market is thriving due to the increasing number of aging vehicles, while OEM demand continues to grow in tandem with the expansion of China’s automotive production. These dynamics provide a favorable environment for tire manufacturers to capitalize on both domestic consumption and export opportunities.

Despite its growth, the market faces challenges, such as rising raw material costs and stringent environmental regulations that pressure manufacturers to adopt sustainable practices while maintaining affordability. Intense competition among domestic and international brands has created a highly price-sensitive environment, further straining profit margins. Counterfeit and low-quality tires remain a significant concern, impacting brand trust and safety standards. Navigating these challenges requires manufacturers to strike a balance between innovation, sustainability, and cost-efficiency to maintain their competitive edge in a rapidly evolving market landscape.

Market Drivers

Growing Vehicle Ownership

China’s automotive market continues to expand rapidly, fueled by increasing urbanization and a growing middle class. Rising disposable incomes are enabling more households to purchase vehicles, particularly in tier-2 and tier-3 cities. This surge in personal vehicle ownership directly increases demand for OEM tires, as every new vehicle requires a set of high-quality tires. Similarly, commercial vehicle ownership has grown due to expanding industries such as e-commerce, logistics, and construction. Companies require reliable vehicles to meet operational demands, driving consistent growth in the commercial tire segment. This trend is expected to continue as vehicle penetration rates in rural and semi-urban areas rise, further bolstering the tire market.

Key Market Challenges

Rising Raw Material Costs

Rubber, steel, and other raw materials essential for tire production have experienced price volatility, driven by supply chain disruptions, geopolitical tensions, and increased global demand. For tire manufacturers, these cost pressures significantly impact profit margins, particularly in a market as price-sensitive as China. While some companies pass these costs onto consumers, fierce competition often limits pricing flexibility. Manufacturers must explore alternative materials and cost-saving production methods to remain competitive while managing these rising expenses.

Key Market Trends

Electric Vehicle Tire Innovations

The rapid growth of China’s EV market has spurred a wave of tire innovations designed to meet the specific needs of electric vehicles. These include tires with lower rolling resistance to extend driving range, reinforced sidewalls to handle heavier vehicle weights, and optimized tread patterns for improved traction and noise reduction. Tire manufacturers are collaborating with automakers to develop custom solutions that enhance overall EV performance.

This trend is expected to accelerate as EV adoption continues, making EV-specific tires a critical focus area for the industry. For instance, in 2022, Sumitomo Rubber Industries, Ltd. revealed the introduction of their inaugural tires specifically engineered for electric vehicles (EV) in China, a market currently experiencing significant growth in EV adoption. The newly developed DUNLOP e. SPORT MAXX” tires for EVs are recognized as some of the most energy-efficient tires produced by the Sumitomo Rubber Group to date.

Key Market Players

• Zhongce Rubber Group Co., Ltd.
• Giti Tire Pte Ltd.
• Sailun Group Co., Ltd
• Kumho (China) Tire Sales Co., Ltd.
• Triangle Tire Co. Ltd.
• Double Coin Tire Group Ltd
• Cheng Shin Rubber (Xiamen) Ind., Ltd.
• AEOLUS TYRE CO., LTD.
• Prinx Chengshan (Shandong) Tire Co., Ltd.

Hankook Tire & Technology Co., Ltd.:

Report Scope:

In this report, the China Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

China Tire Market, By Vehicle Type:

• Passenger Car
• Commercial Vehicle
• Two-Wheeler

China Tire Market, By Demand Category:

• OEM
• Replacement

China Tire Market, By Tire Construction Type:

• Radial
• Bias

China Tire Market, By Region:

• East
• South-Central
• North
• South-West
• North-East
• North-West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the China Tire Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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